Registering for GST

As previously mentioned in our Basics of GST blog last year, you must register for GST if you run a business or other ‘enterprise’ and your GST turnover is $75,000 or more (for non-profit organisations the threshold is $150,000 or more). However, the exception to this rule is if you are a taxi driver then you must register for GST regardless of your turnover. Registering for GST is optional for those who run a business or enterprise where GST turnover is less than $75,000.

So how exactly do you work out your GST turnover to determine if you need to register? Your GST turnover is your gross business income (not your profit) and excludes:

  • GST you included in sales to your customers.
  • Sales that are not for payment and are not taxable.
  • Sales not connected with an enterprise you run.
  • Input-taxed sales you make.
  • Sales not connected with Australia.

If your business is not registered for GST, it’s important that you check each month to see whether you have reached the GST turnover threshold. You must register within 21 days of reaching the threshold or you may face consequences from the ATO.

You reach the GST turnover threshold if either:

  • Your turnover for the current month and the previous 11 months is $75,000 or more
  • Your turnover for the current month and the next 11 months is likely to be $75,000 or more

When you are working out your projected GST turnover, don’t include amounts you received for the sale of a business asset (eg. capital asset) or for any sale you made, or are likely to make, solely as a consequence of ceasing or substantially and permanently reducing the size of your business. It’s also important to note that as members of a GST group, your turnover includes the turnover of the other group members (but it does not include transactions between group members).

There are many ways to register for GST such as online or by form. One of the easier ways is through an agent such as Fortis Accounting Partners. We are able to help you through the registration process to leave you free from the complications. Also, one you are registered for GST, you will need to lodge a Business Activity Statement (BAS). Fortis Accounting Partners will work with you and lodge your BAS on your behalf.

For more information on registering for GST please refer to the ATO website or get in touch with the team here at Fortis Accounting Partners.  You can reach us on 02 9267 0108, or via info@fortisap.com.au.

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