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Inconsistent rounding of GST?

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I'm new

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Hello,

 

We have noticed of values being inconsistantly rounded when attempting to calculate gst where the tax will equal a value of xx.x55 (to three decimal places), which should get rounded up by a cent. Calculations were performed on https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/gst-calculator by inserting the Ex GST Value.

 

Rounding:

Ex GST Value: 4.55

Tax (not rounded): 0.455

Tax (rounded): 0.456

Normal Inc Value: 5.01

Moneysmart Inc Value: 5.00

 

Not Rounding:

Ex GST Value: 14.55

Tax (not rounded): 1.455

Tax (rounded): 1.46

Normal Inc Value: 16.01

Moneysmart Inc Value: 16.01

 

 

There are plenty of other examples (e.g 17.55, 34.55 etc). Can someone explain the logic or rule that triggers the rounding so we can replicate it in our systems?

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Accepted Solutions

Most helpful response

Taxicorn

Replies 0

As long as you are consistent, then I doubt it would make any real difference.

 

Just follow the same rounding rules for GST paid and GST received.

 

 

1 REPLY 1

Most helpful response

Taxicorn

Replies 0

As long as you are consistent, then I doubt it would make any real difference.

 

Just follow the same rounding rules for GST paid and GST received.