5th July 2023 | Business
If you have a business in Australia, you may need to collect extra money from your customers and pay it to the Australian Taxation Office (ATO) as Goods and Services Tax (GST). Most goods and services sold or consumed in Australia are subject to a 10% GST. If your business earns $75,000 or more in a year, you must register for GST. Non-profit organisations with a turnover of $150,000 or more per year also need to register. Additionally, if your business provides taxi services, you must register for GST regardless of your turnover. If your business doesn’t meet these criteria, you don’t have to register for GST.
If you’re a non-resident there are special rules that may apply to you.
Otherwise, registration for GST is optional.
What happens if I don’t register for GST?
If your GST turnover is under $75,000 and you don’t register for GST, you won’t include GST in your fees. You also can’t claim GST credits for your business purchases.
What GST credits are
If you’re registered for GST, you can generally claim back any GST included in the price of things you’ve bought for your business. These are GST credits.
If, for any tax period, your GST credits are higher than the amount of GST your business has to pay the ATO, you could get a refund.
Paying GST by instalments
You can pay GST by instalments each quarter based on what you or the Australian Tax Office (ATO) estimates your GST liability to be. You can vary this amount each quarter.
Annual apportionment of GST input tax credits
Each year, when calculating your Goods and Services Tax (GST) input tax credits, you can claim the full credit for a business purchase even if you plan to use it partly for personal purposes. However, at the end of the year, you need to make a single adjustment to account for the percentage of private use.
Double-check with your Accountant to see if you need to register for GST. You can contact us at info@Ax3.com.au
Or to find out more information visit the ATO website