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GST Registration Guide for Business

July 6, 2024

GST Income Registration Requirements all you need to know.

The Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. If you're running a business, you need to understand whether you need to register for GST and what your obligations are. Here’s a guide to the GST income registration requirements.

ABN Registration1. When to Register for GST

You must register for GST if:

  1. Your Business Turnover is $75,000 or More:

    • If your business has a GST turnover (gross income minus GST) of $75,000 or more per financial year, you're required to register for GST.
  2. Non-Profit Organisations:

    • Non-profit organisations must register for GST if their turnover is $150,000 or more per financial year.
  3. Taxi or Ride-Sourcing Drivers:

    • If you provide taxi or ride-sourcing services (e.g., Uber), you must register for GST regardless of your turnover.
  4. Voluntary Registration:

    • Even if your turnover is below the threshold, you can choose to register for GST voluntarily. This can be beneficial if you want to claim GST credits.

2. Calculating Your GST Turnover

To determine if you need to register for GST, you need to calculate your GST turnover. This includes:

  • All Sales: Include all sales (excluding GST) that are connected with your business.
  • Exclude: Sales not connected with Australia, input-taxed sales (e.g., financial supplies and residential rent), and sales not for payment (e.g., donations).

3. How to Register for GST

You can register for GST:

  • Online: Through the Australian Business Register (ABR) website or via the ATO’s online services.
  • By Phone: Call the ATO at 13 28 66.
  • Through a Registered Tax Agent like Gotax can handle the registration process on your behalf.

4. GST Reporting and Payment

Once registered, you’ll need to:

  • Issue Tax Invoices: Provide tax invoices for sales over $82.50 (including GST) to your customers.
  • Lodge Business Activity Statements (BAS): Report your GST collected on sales and GST credits on purchases. BAS can be lodged monthly, quarterly, or annually, depending on your business’s turnover and reporting cycle.
  • Pay GST: Pay the net amount of GST collected minus GST credits claimed to the ATO.

5. Key Dates and Deadlines

  • Monthly BAS: Due on the 21st of the following month.
  • Quarterly BAS: Due on the 28th of the month following the end of the quarter (e.g., 28 April, 28 July, 28 October, and 28 January).
  • Annual GST Return: Due on 31 October for businesses with annual reporting.

6. Benefits of GST Registration

  • Claiming GST Credits: Registered businesses can claim credits for the GST included in the price of goods and services purchased for business use.
  • Improved Business Credibility: Being GST-registered can enhance your business’s credibility with suppliers and customers.

7. Penalties for Non-Compliance

Failing to register for GST when required can result in penalties, including:

  • Failure to Lodge Penalty: Penalties for late lodgment of BAS.
  • General Interest Charge (GIC): Interest on overdue amounts.
  • Administrative Penalties: Penalties for errors or omissions in your GST reporting.

Summary

Understanding and adhering to GST registration requirements is essential for running a compliant business in Australia. If your business turnover meets or exceeds the threshold, ensure you register for GST and meet your reporting and payment obligations. For personalised advice and assistance, consider consulting with a Gotax tax professional or accountant.

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