Goods and Services Tax (GST)
Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia..
Generally, businesses and other organizations registered for GST will:
- include GST in the price they charge for their goods and services
- claim credits for the GST included in the price of goods and services they buy for their business.
What you need to do for GST
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organizations) or you provide taxi travel – you need to:
- register for GST
- work out whether your sales are taxable (that is, subject to GST, and not exempted because they are GST-free or input-taxed) and include GST in the price of your taxable sales
- issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
- claim GST credits for GST included in the price of your business purchases
- account for GST on either a cash or non-cash basis and put aside the GST you have collected so you can pay it to us when due
- lodge activity statements or annual returns to report your sales and purchases, and pay GST to us or receive a GST refund.
You must register for GST if:
- your business or enterprise has a GST turnover (gross income minus GST) of $75 000 or more
- your non-profit organization has a GST turnover of $150 000 per year or more
- you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi
- you want to claim fuel tax credits for your business or enterprise.
If your business or enterprise doesn’t fit into one of the above categories, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.