Your business will need to register for GST if your annual turnover is $75,000 or more. You have a choice to register or not if it’s less than that.
You must register for GST if you reach the $75,000 turnover threshold or if it looks likely that you will exceed it. Once you’ve passed the turnover threshold, you must register within 21 days
Taxi drivers and ride-sharing drivers need to register for and charge GST no matter what their turnover is.
How does the GST work?
The current rate of GST is 10%. This means that if you charge $100 for your goods or services, your customer will be charged $110. The additional $10 is the GST which needs to be paid to the ATO.
When you buy supplies for your business, you’ll be charged 10% in GST which you can claim back as a credit. At the end of each GST period – usually quarterly but occasionally monthly – you need to account for the GST you’ve collected on your sales minus any that you’ve paid (the credits) on your purchases.
A business activity statement (BAS) is used to report all your periodic business tax obligations and entitlements. Need help with your BAS? Contact us
Need more help?
A Girl Friday can help. We have a range of services to help with your Bookkeeping, BAS & Payroll
Read more about GST Registration at the ATO: