When forming or running a business, it is essential to know when you need to register for GST, and how to register. Instances where you need to register for GST include if your business or enterprise has a turnover of $75,000 per annum. If you are seeking clarification to whether you need to register and how, it is advisable to speak to a business lawyer to answer any of your concerns.
What is GST?
Most goods and services in Australia incur a broad-based tax of 10% once sold or consumed. This is known as the goods and services tax, more commonly the GST. For qualifying businesses, GST needs to be paid by the business to the ATO as stipulated by the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
When do you need to register for GST
You must register for GST if your business if:
- Your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more;
- Your non-profit organisation 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; or
- You want to claim fuel tax credits for your business or enterprise.
How Do I Register for GST
1. Obtain an ABN
In order to register for GST, you must first have a registered Australian Business Number (ABN). With LawPath, you can obtain an ABN through our ABN registration service. Once submitted, we will accelerate your application and email you with a new ABN within 24 hours so you can continue with your GST registration. It is important to check if you are eligible and to determine what business structure is the most suitable for your business before applying.
2. Obtain an AUSkey
To be able to log in to the application form to complete your online GST registration you will need to have an AUSkey, which is a secure login giving you the ability to access and transact online with many government agencies on behalf of a business. For more information on how to register for an AUSkey for your business, check out the Australian Business Register.
3. Register on the ATO’s website
Once you have your ABN and AUSkey on hand, you can proceed to the ATO’s Business Portal in order to register for GST. You are able to cancel your registration for GST through the portal as well. Once your application is approved, the ATO will be in contact with you in writing confirming your GST registration details, as well as the date your registration will become in effect (and your ABN details if you are yet to receive them).
If you are looking to register a company, LawPath can assist with your GST registration. Along with GST registration, we have company registration bundles that include ABN, TFN, PAYG and Domain Registration and much more.
Want to know more? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.