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GST ADVICE
Goods & Services Tax (GST) is a broad based tax of 10% on most goods, services & other items sold or consumed in Australia.
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HOW DOES GST WORK ?
Generally businesses registered for GST will include GST in the price of sales to their customers & claim for the GST spent which is included in the price of many of their business purchases.
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HOW DO I KNOW IF I NEED TO CHARGE GST ?
You will need to register for GST & charge GST on your sales if:
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You run a business and have a GST turnover of $75,000 or more, or
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You run a non-profit organisation and have a GST turnover of $150,000 or more, or
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You provide tax travel service (including ride sourcing)
some business sales are exempt from GST - see exemptions
HOW DO I REGISTER FOR GST?
Contact our Business team and we can complete the registration for you.
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WHEN TO CHARGE GST
If you are registered for GST, the goods and services you sell in Australia are generally taxable - you must charge GST in their price, unless they are 'GST-Free' or 'Input-Taxed'
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WHAT HAPPENS WITH GST COLLECTED?
When you charge GST on an item, you are collecting 10% for the government as a goods and service tax. Each Business Activity Statement (BAS) reports this amount and you must then pay the GST collected less GST credits to the ATO.
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WHEN TO CLAIM GST
If you are registered for GST, the goods and services you buy in Australia are generally taxable (unless GST-Free) so you claim the credits for GST you have spent
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WHAT HAPPENS WITH GST SPENT?
When you spend GST on an item, you are paying 10% as a Goods and Services Tax. Each Business Activity Statement (BAS) reports this amount as a credit against any GST collected on Sales. You then pay the ATO the difference.
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ISSUING TAX INVOICES
Tax Invoices for taxable sales of less than $1,000 must include enough information to clearly determine the following details:
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that the document is intended to be a tax invoice
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the seller's identity
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the seller's ABN
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the date the invoice was issued
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a brief description of the item sold, including the quantity (if applicable) and the price
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the GST amount (if any) payable - this can be shown separately, or if the GST amount is exactly one-eleventh of the total price, a statement such as 'total price includes GST'
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the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST)
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In addition, tax invoices for sales of $1,000 or more need to show the buyer's identity or ABN
RECORD KEEPING OBLIGATIONS FOR GST
You need to record your sales and purchases so you can report your GST liabilities accurately and claim the GST credits you're entitled to.
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WHY DO I NEED SOFTWARE?
Most businesses find it easier to record transactions electronically. Accounting software can produce tax invoices and provide up to date summaries and reports of your GST liabilities and credits, helping you manage your cash flow and complete your Business Activity Statement.
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REPORTING TO THE ATO FOR GST
You report and pay GST amounts to the ATO, and claim GST credits by lodging a Business Activity Statement (BAS)
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