Goods and Services Tax


Rede GST consultants help you as GST is a tax of 10% in Australia on most goods, services, and consumables. So if you are a registered business, you need to pay GST on most goods and services you sell or supply.

Other registered businesses will include GST in the price of items you purchase for your business. You may be entitled to claim input tax credits from the ATO if you are registered for GST. The acquisitions are obtained to carry on your enterprise. Although the liability for paying GST rests with GST-registered entities, the end consumer bears the economic cost.

If you do not charge GST on sales but are eligible for input tax credits for GST included in the price you paid for supplies, the supplies are GST-free. In an input tax sale, you do not charge GST to your customers when you sell goods or services. Furthermore, you cannot claim input tax credits for the GST portion of your business expenses related to the items purchased to make the supply.

The reporting periods for GST are called tax periods and can be quarterly or monthly. Quarterly tax periods are three months long, ending 30 September, 31 December, 31 March, and 30 June. Monthly tax periods end on the last day of each calendar month. Entities with an annual turnover of less than $20 million generally have quarterly tax periods but can choose monthly tax periods. Entities with an annual turnover greater than $20 million are required to have monthly tax periods and lodge their activity statements electronically.

The rules for allocating GST payable and ITCs to tax periods differ depending on whether GST is accounted for in cash or accrual form. However, if you meet one of the following conditions, you can account for GST on a cash basis:

  • Are a small business with an annual turnover of less than $2 million. This includes the turnover of your related entities.
  • Are not running a business, but carrying on an enterprise with a GST turnover of $2 million or less.
  • Account for income tax on a cash basis.
  • Carry on an enterprise that the commissioner has determined can account for GST on a cash basis regardless of your GST¬†turnover.
  • Are an endorsed charitable institution regardless of your GST turnover.
  • Are a trustee of an endorsed charitable fund, gift-deductible entity, or government school, regardless of your GST turnover.

Entities running an enterprise must register for GST if their annual turnover is at or above the registration turnover threshold of $75,000. This threshold is $150,000 for nonprofit organisations. Entities below this threshold can also register for GST. If they do, the registration must continue for 12 months. Also, you cannot include GST on anything you sell or provide if you are not registered for GST. You cannot claim any GST included in the price of goods or services purchased for your business. In a word, our Rede GST consultants will help you.

MORE: For more information, see the GST guide for small business.

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