What is GST, and when do I need to register for it?

August 15, 2023
minutes to read
Justin Bohlmann

The Goods and Services Tax (GST) is a value-added tax that applies to most goods and services in Australia. If you are running a business or providing a service, it’s important to know when you need to register for GST and how to do it. In this blog post, we’ll explain everything you need to know about registering for GST so you can make sure you are compliant with Australian taxation laws.

What is GST?

GST is a uniform tax levied on most goods and services sold in Australia. GST is collected through business taxes, which means that if you are eligible for GST, you’ll need to collect 10% on top of the price you charge to customers. In Australia, there are only a small number of exceptions, this includes necessities such as milk or medical supplies.

When do I need to register for GST?

If your annual turnover is more than $75,000, then you are required by law to register and charge GST on your sales. This includes all income earned from the sale of goods and services.

Are there any exceptions?

It’s important to note that even if your annual turnover is less than $75,000, you may still choose to voluntarily register for GST. This can be beneficial if you purchase a lot of goods subject to GST, because it allows you to claim back the amount of GST paid on those purchases. There are also certain businesses, such as a rideshare driver, including Uber, that are required to register for GST before commencing that type of work.

What are the benefits of being registered for GST?

In addition to being able to claim back the amount of GST paid on related business purchases, there are other benefits associated with registering for GST in Australia. Most government assistance programs and grants require you to be GST-registered to be eligible for rebates. This includes being eligible for the R&D grant.

How do I register for GST?

If you don’t already have an ABN, you’ll need to apply for one before you can register for GST. Once you’ve confirmed that you need to register for GST, you can easily do it online. Just visit the Australian Taxation Office (ATO) website and you can register in minutes.

How do I track my GST?

Once you’ve registered for GST, you can start charging GST on all eligible sales from your business. Remember to include GST in the price of your products and services and keep accurate records of all sales and purchases made by your business. To make it easy, a tool like Thriday calculates all your GST incomings and outgoings automatically, and you can easily keep a track of what your expected tax bill will be.

In summary, if you expect to earn over $75,000 or you are rideshare driver, you’ll need to register for GST. Registering is easy to do and can be beneficial both from a financial standpoint as well as from an operational one. Understanding when you need to register for GST in Australia can help ensure that your business remains compliant with Australian taxation laws.

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