Your Guide to GST in Australia
Does My Business Have To Register For GST?
If your company’s yearly revenue is $75,000 or more, you must register for GST. If it is less than that, you have the option of registering or not. If your business’s annual revenue exceeds $75,000 or it appears likely that it will, you must register for GST. After reaching the turnover level, you have 21 days to register.
Regardless of their annual revenue, taxi drivers and drivers for ride-sharing services must register for and collect GST. Contrarily, not-for-profit organizations are exempt from registration requirements after they attain a $150,000 annual revenue. The Australian Business Register (ABR) website allows you to register for GST online and apply for an ABN (www.abr.gov.au).
You can also register for GST on the ATO website’s Business Portal. Since the ABR is the main repository for information about Australian businesses, in addition to obtaining an ABN and registering for GST, you can also apply for pay-as-you-go (PAYG) withholding, obtain a business tax filing number (TFN), and register your business name.
How Does GST Work?
GST is currently being charged at a rate of 10%. In other words, if you price $100 for your goods or services, your client will pay $110 for them. The $10 extra is the GST which needs to be paid to the ATO.
GST, which you can reclaim as credit, is charged at 10% when you purchase supplies for your company.
You must account for the GST that you have earned on your sales minus any GST that you have paid (the credits) on your purchases after each GST period, which is typically quarterly but can occasionally be monthly. The amount payable is the difference (or refundable if credits on purchases exceed debits on sales).
By submitting a business activity statement and paying the net GST to the ATO, you can accomplish this. Businesses with a turnover of less than $75,000 are offered the option of registering for GST because they might want to do so if they spend a lot of money on supplies and want to reclaim the GST. This is especially true if the GST credits on purchases are more than the GST that customers are charged.
Wrapping It Up!
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