Wellington, Aug 10 NZPA - Increasing the GST rate in October will now be easier for businesses after the Government made changes for goods and services that straddle the October 1 change over date.

GST will rise from 12.5 percent to 15 percent from this October.

Cabinet yesterday approved changes which was proposed by the GST Advisory Panel for transactions that start before and finish after the increase.

The legislation will be changed to take into account business practice, remove excessive compliance costs and remove unfair outcomes for businesses and customers.

"Today's businesses offer a wider variety of contract and payment options than was the case 20 years ago, and there are now a myriad of business and accounting processes, including the far greater use of electronic systems," Revenue Minister Peter Dunne said.

Submissions on draft legislation close Monday.