Goods And Services Tax – GST

What is GST?

The Australian Tax Office levies a Goods and Services Tax (GST) on eligible business transactions - image

The Australian Tax Office levies a Goods and Services Tax (GST) on eligible business transactions

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items.
Generally, businesses registered for GST will include GST in the price of sales to their customers, and claim credits for the GST included in the price of their business purchases.

Do you need to register for GST?

You must register for GST if:

  • your business has a GST turnover of $75 000 or more
  • your non-profit organisation has a turnover of $150 000 per year or more
  • you provide taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover. This rule applies to both taxi owner drivers and people who just rent a taxi.

What are GST credits?

GST credits are a potential amount of money your business might be able to claim from the ATO.
If you are registered for GST, you can claim back the GST that has been included in the purchase price of something you’ve bought for your business.

Tax invoices

If you’re registered for GST, your invoice must be a tax invoice. Tax invoices must be formatted correctly for you to be able to claim you full tax entitlements.

Accounting for GST in your business and lodging BAS or annual GST return

As a GST-registered business, you report and pay GST amounts, and claim GST credits, by lodging a BAS (business activity statement) or an annual GST return.

For tips and assistance with GST please contact our chartered accountants at our Epping office.