GOODS & SERVICE TAX (GST) IS A BROAD BASED TAX OF 10% ON MOST GOODS, SERVICES & OTHER ITEMS SOLD OR CONSUMED IN AUSTRALIA.

HOW DOES GST WORK ?

GENERALLY BUSINESSES REGISTERED FOR GST WILL INCLUDE GST IN THE PRICE OF SALES TO THEIR CUSTOMERS & CLAIM CREDITS FOR THE GST SPENT WHICH IS INCLUDED IN THE PRICE OF MANY OF THEIR BUSINESS PURCHASES.

HOW DO I KNOW IF I NEED TO CHARGE GST?

IF YOU RUN A BUSINESS AND HAVE A GST 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 AND CHARGE GST ON YOUR SALES – SOME BUSINESS SALES ARE EXEMPT – SEE EXEMPTIONS

WHEN DO I REGISTER FOR GST?

YOU WILL NEED TO REGISTER FOR GST IF YOUR CURRENT OR PROJECTED GST TURNOVER WILL REACH THE REGISTRATION THRESHOLD OF $75,000

HOW DO I REGISTER ?

GENERALLY BUSINESSES REGISTRATIONS ARE MANAGED BY YOUR ACCOUNTANT OR DIRECTLY WITH THE ATO - PLEASE CALL US TO UPDATE YOUR REGISTRATION.

IS THERE A BETTER DATE TO REGISTER FOR GST?

WE PREFER YOU TO REGISTER AT THE START OF A MONTH OR THE START OF THE NEXT REPORTING QUARTER TO ENSURE THAT RECORDS ARE COMPLETE

WHEN TO CHARGE GST

IF YOU ARE REGISTERED FOR GST - THE GOODS AND SERVICES YOU SELL IN AUSTRALIA ARE GENERALLY TAXABLE (YOU MUST CHARGE GST IN THEIR PRICE) UNLESS THEY ARE `GST -FREE’ OR `INPUT TAXED’.

WHAT HAPPENS WITH GST?

WHEN YOU CHARGE GST ON AN ITEM - YOU ARE COLLECTING 10% FOR THE GOVERNMENT AS A GOODS AND SERVICE TAX

EACH BUSINESS ACTIVITY STATEMENT (BAS) REPORTS THIS AMOUNT AND YOU THEN MUST PAY THE GST COLLECTED LESS GST CREDITS TO THE ATO

WHEN TO CLAIM GST

IF YOU ARE REGISTERED FOR GST - THE GOODS AND SERVICES YOU BUY IN AUSTRALIA ARE GENERALLY TAXABLE - UNLESS GST FREE - SO YOU CLAIM THE CREDITS FOR GST YOU HAVE SPENT

WHAT HAPPENS WITH GST?

WHEN YOU SPEND GST ON AN ITEM - YOU ARE PAYING 10% AS A GOODS AND SERVICE TAX.

EACH BUSINESS ACTIVITY STATEMENT (BAS) REPORTS THIS AMOUNT AS A CREDIT AGAINST ANY GST COLLECTED ON SALES

YOU PAY THE ATO THE DIFFERENCE.

ISSUING TAX INVOICES

TAX INVOICES FOR TAXABLE SALES OF LESS THAN $1,000 MUST INCLUDE ENOUGH INFORMATION TO CLEARLY DETERMINE THE FOLLOWING SEVEN DETAILS:

1. THAT THE DOCUMENT IS INTENDED TO BE A TAX INVOICE

2. THE SELLER'S IDENTITY

3. THE SELLER'S AUSTRALIAN BUSINESS NUMBER (ABN)

4. THE DATE THE INVOICE WAS ISSUED

5. A BRIEF DESCRIPTION OF THE ITEMS SOLD, INCLUDING THE QUANTITY (IF APPLICABLE) AND THE PRICE

6. THE GST AMOUNT (IF ANY) PAYABLE – THIS CAN BE SHOWN SEPARATELY OR, IF THE GST AMOUNT IS EXACTLY ONE-ELEVENTH OF THE TOTAL PRICE, AS A STATEMENT SUCH AS 'TOTAL PRICE INCLUDES GST'

7. THE EXTENT TO WHICH EACH SALE ON THE INVOICE IS A TAXABLE SALE (THAT IS, THE EXTENT TO WHICH EACH SALE INCLUDES GST) 

IN ADDITION, TAX INVOICES FOR SALES OF $1,000 OR MORE NEED TO SHOW:

1. 8.    THE BUYER'S IDENTITY OR ABN

RECORD KEEPING OBLIGATIONS FOR GST

YOU NEED TO RECORD YOUR SALES AND PURCHASES SO YOU CAN REPORT YOUR GST LIABILITIES ACCURATELY AND CLAIM THE GST CREDITS YOU'RE ENTITLED TO.

GST

REPORTING

WHY DO I NEED SOFTWARE TO MANAGE MY GST?

MOST BUSINESSES FIND IT EASIER TO RECORD TRANSACTIONS ELECTRONICALLY. ACCOUNTING SOFTWARE CAN PRODUCE TAX INVOICES AND PROVIDE UP-TO-DATE SUMMARIES AND REPORTS OF YOUR GST LIABILITIES AND CREDITS, HELPING YOU MANAGE YOUR CASH FLOW AND COMPLETE YOUR ACTIVITY STATEMENT.

REPORTING TO THE ATO FOR GST

YOU REPORT AND PAY GST AMOUNTS TO THE ATO, AND CLAIM GST CREDITS, BY LODGING A BUSINESS ACTIVITY STATEMENT (BAS)