Goods and Services Tax (GST)
Can I have an ABN but not register for GST?
An Australian Business Number (ABN) is an identifying number which is used by businesses in all dealings with the ATO. You must have an ABN to register for GST. However, you can have an ABN and not register for the GST if your business income is below the $75,000 per annum threshold.
When should I register for GST?
You must register for GST if:
your business has a GST turnover (gross payment) of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more. you provide taxi or limousine travel (including ride-sourcing services like Uber, GoCatch, Didi or OLA) regardless of your GST turnover.
As a rule you need to register within 21 days of your GST turnover exceeding the relevant threshold. If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales.
Can I register for GST even if I do not classify on the options above?
If your GST turnover is below the $75,000, registering for GST is optional. You may choose to register if your GST turnover is below the $75,000 threshold, however this means that once registered, regardless of your turnover, you must include GST in your fees and claim GST credits for your business purchases.
Is it worth registering for GST?
Registering for GST is an important decision for small business owners in Australia. While it may not be mandatory for all businesses, GST registration can provide several benefits, such as improved cash flow, increased credibility, and access to input tax credits.
Can I claim back GST as a sole trader?
GST is a tax on goods and services you provide as a business. If you're a sole trader, you'll be able to claim GST credit for any GST included in the price you pay for things you use in your business.
Is there a limit I can claim back for my GST? What is the GST limit for 2023?
Yes there is a limit you can claim back for GST.
For 2023–24 the maximum GST credit you can claim is $6,191 (that is, 1/11 × $68,108). This limit also applies to cars which are fuel efficient.
What businesses are exempt from GST?
GST exemption for small business:
● most basic food.
● some education courses, course materials.
● some medical, childcare and health services.
● some medicines.
● some exports.
● some religious services and charitable activities.
What if a subcontractor is not registered for GST?
If they're not registered for GST, you wouldn't need to pay GST to them. You can check whether their ABN is registered for GST on the ABN lookup. If a contractor is not registered for GST, they can't charge GST, even if they're including the cost of materials
How much does it cost to register for GST in Australia?
It's simple to register for GST yourself and it costs nothing.
How to register:
● via Online services for Business (you must have your MyID set up for that)
●by phone on 13 28 66
● Using a BAS or Tax Agent
Therefore, you need help to register it, I can get it registered for you for a fee of $55.00
How do I calculate GST without amount?
Method to Remove GST from Total Amount:
First, you need to calculate the GST amount using the formula: GST = Original price of the product – [Original price of the product x {100/(100+GST%)}]
Then, calculate the net price by subtracting the GST amount from the original price of the product or service
What happens if I charge GST but am not registered?
If a business is not registered for GST, they cannot add 10% onto the price of their goods/services and claim it as “GST”. Likewise, you cannot charge a client for GST, nor claim a GST credit on the purchase as the seller was not registered, even if you have an invoice from them showing an amount as GST.
How often will the GST be paid?
You must submit Business Activity Statements (BAS) to the ATO every three months if you are a sole trader, have a partnership or company, and are registered for GST. Your annual tax return is then amended to exclude the GST component of your income and expenses. However some sole traders opt to lodge it annually (if turnover is low).
International Tax laws:
Export of Goods and Services
Exported goods are GST-free if they are exported from Australia within 60 days of one of the following, whichever occurs first:
● the supplier receives any payment for the goods
● the supplier issues an invoice for the goods.
In the case of goods paid for by instalments, the payment or invoice must be for the final instalment. Suppliers can apply to us to extend the 60-day period.
Other exports
Other exports generally include supplies of things other than goods for consumption outside Australia, such as:
● services
● various rights
● other professional services.
A supply of a service is usually GST-free if the recipient of the service is outside Australia. There are specific rules that determine if the supply is GST-free.
Import of Goods and Services
Goods and services tax (GST) is payable on most goods imported into Australia (taxable importations).
GST on a taxable importation is payable by businesses, organisations and private individuals, whether they are registered for GST or not. However, if you are a GST-registered business or organisation and you import goods as part of your activities, you may be able to claim a GST credit for any GST you pay on those goods.
Sales of goods that are to be imported into Australia that have a customs value at or below $1,000 can be non-taxable importations (see item 26).
However, the supply of low value goods into Australia can be a taxable supply if the supply is connected with Australia.
BAS Quarterly Lodgement:
Quarter 1 : July through September
Lodgement due date 28 October (25 November with a Tax Agent)
Quarter 2 : October through December
Lodgement due date 28 February (28 February with a Tax Agent)
Quarter 3 : January through March
Lodgement due date 28 April (25 May with a Tax Agent)
Quarter 4 : April through June
Lodgement due date 28 July (25 August with a Tax Agent)
BAS Annually Lodgement:
Lodgement due date: 31 October of the next FY
For example: BAS from FY 2024/2025 is due on 31/10/2025
IAS Monthly Lodgement:
Lodgement due date: 21st of the following month
For example: IAS from May 2025 is due on 21/06/2025
How can I cancel my GST?
It's simple to cancel your GST yourself and it costs nothing.
How to cancel it:
● via Online services for Business (you must have your MyID set up for that)
●by phone on 13 28 66 (Monday to Friday between 8am and 6pm)
● Using a BAS or Tax Agent (send a request on contact page) - a $55 cancelation fee will apply
Please note: not all cancellations are allowed online. Some circumstances will require a phone call to ATO (for example if you are an Uber driver, or have an overdue debt with ATO).
