What to Do Your Business Exceeds $75000

What to Do When Your Business Exceeds $75,000

Starting a small business comes with its own set of challenges, especially when it comes to tax compliance. If your business turnover unexpectedly exceeds the $75,000 threshold, you need to take immediate action to comply with GST regulations. We will help you understand your obligations and provide practical steps to ensure you remain compliant with the Australian Taxation Office (ATO).

Index

1. Register for GST
2. Issue Corrected Tax Invoices
3. Lodge a Business Activity Statement (BAS)
4. Claim GST Credits
5. Transitional Arrangements
6. Record-Keeping
7. eCashbooks software
8. Gotax Tax Advice

Register for GST

When your business turnover exceeds $75,000, you must register for GST immediately. This can be done online through the ATO's Business Portal or by contacting the Gotax directly. Your GST registration will be effective from the date your turnover exceeded $75,000.

Issue Corrected Tax Invoices

Once registered for GST, you need to issue corrected tax invoices for sales made after your turnover exceeded $75,000. These invoices should include the GST component. Contact your customers to explain the situation and request the additional 10% GST.

Lodge a Business Activity Statement (BAS)

You will need to lodge Business Activity Statements (BAS) either monthly or quarterly. The BAS will detail the GST you have collected and the GST credits you are claiming.

Claim GST Credits

You can claim GST credits for business purchases that include GST. Ensure you have valid tax invoices for these purchases to substantiate your claims.

Transitional Arrangements

If you cannot pay the GST immediately, contact the ATO to discuss your situation. The ATO may offer payment arrangements to help manage your cash flow. Prompt communication with the ATO can help you avoid penalties and interest charges.

Record-Keeping

Maintain accurate records of all your sales and purchases. This will assist you in lodging your BAS and claiming GST credits effectively.

eCashbooks Small Business Software

Managing your GST obligations and business expenses is easier with the the eCashbooks small business system.. This app includes all the logbooks and tax expense recording systems you need to keep track of your business expenses along with facilities to generate your BAS.. Start your trial today.  .

Gotax Tax Advice

Always monitor your business turnover closely. If you anticipate that your turnover might exceed $75,000, consider registering for GST earlier to avoid compliance issues. This proactive approach will help you manage your cash flow better and ensure you stay compliant with ATO regulations.

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