The goods and services tax in Australia is a value added tax of 10% on most goods and services sales, with some exemptions and concessions.
How can GST affect my business?
If you’re a business, you may be required to register for and collect GST, this means:
- You may need to add GST to your prices.
- You will need to send that extra money to the ATO.
- You can claim back any GST that you’re charged on business supplies and expenses.
When Do I Register for GST?
If you are not already registered for GST, you will need to register as soon as you anticipate that your income will exceed $75,000 per year.
You must register for GST:
- When your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more. (see Working out your GST turnover)
- When you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation.
- If you’re already in business and have reached the GST threshold.
- If your non-profit organisation has a GST turnover of $150,000 per year or more.
- When you provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi.
- If you want to claim fuel tax credits for your business or enterprise.
Registering for GST is optional if your business or enterprise doesn’t fit into one of these categories. If you choose to register, generally you must stay registered for at least 12 months.