This guide will help you to understand what is GST, how it works and what are the implications for your business.
What is GST?
‘Goods and Services Tax’ (GST) is a broad-based tax of %10 on most goods, services and other items sold or consumed in Australia.
Do I need to register for GST?
If you run a business or other enterprise and have a GST annual turnover of $75, 000 or more ($150, 000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing)- you need to register for GST.
Once you have passed the turnover threshold, you must register within 21 days.
We can help you registering for GST, please contact us.
How GST works?
When you are registered for GST you will include GST in the price you charge for your goods and services. Considering that the current rate of GST is %10, for example, if you charge $100 for your goods or services, your customer will be charged $110. The additional $10 is the GST that you need to pay to the ATO.
On the other hand, when you buy goods or services for your business, you will be charged %10 in GST, which you can claim back as a credit.
Reporting your GST
To report your GST to the ATO you will need to lodge a ‘Business Activity Statement’ (BAS). You will report all the GST you have charged on your sales and all the GST you have paid on your purchases.
Businesses with an annual turnover more than $20 million are required to complete a BAS on a monthly basis. Other businesses may choose to report GST monthly when their GST is less than $20 million. In this case, you must lodge your BAS by 21 days after the end of each month.
On the other hand, businesses with less than $20 million turnover must complete a BAS quarterly. In this case you must lodge your BAS by the 28th day of the month following the end of the financial quarter (September, December, March, June).
Precent can help you calculating and lodging your BAS, you can contact us.
This information is a general guide for our clients. We can help you to register for GST and lodge your BAS. We have a professional team specialized in this area. Please contact us at [email protected], or call us to (+ 61) 2 8317 1281.