What is GST?
Generally speaking goods and services tax (GST) is a broad-based tax of 10% on most goods and services sold or consumed in Australia. Why does this concern business owners? Once a business is registered for GST this will be included in the price of sales to consumers.
When do you need to register for GST?
You will need to think about registering for GST as your business profit grows. When your business or enterprise GST turnover reaches $75,000 or more ($150,000 or more for non-profit organisations) you will need to register. Registration must occur within 21 days of meeting this GST turnover threshold. Note: if you provide taxi travel, you will need to register for GST regardless of your turnover.
You only need to register once for GST even if you operate more than one business through the same entity.
For example (the company LawPath Pty Ltd operates two businesses, LawPath Subscription Services and LawPath Documents). LawPath Pty Ltd will only need register once for GST, and this will cover both businesses.
Why should I register for GST?
If you want to claim fuel tax credits for your business or taxi travel you will need to register.
If your GST turnover is below the threshold, registration is optional. However it can be good business practice to register for GST if you anticipate your new business will reach the $75000 turnover within the first 12 months of operation.
How do you register for GST?
If you’ve already incorporated your business and have an Australian Business Number (ABN) registering for GST can be done online (Business Portal), through written form, phone or through your registered tax or BAS agent.
Online: Business Portal https://bp.ato.gov.au
Phone: 13 28 66 (8am-6pm Monday to Friday)
Form: available at https://www.ato.gov.au/General/Gen/Order-ATO-products-online/
How can LawPath help?
Let LawPath help you register for GST, this is included in our company starter bundle. We make starting a business easy providing GST, ACN, ABN, TFN, PAYG and Domain Registration and much more for $596. If your business is already up and running you can read on when and how to register on the ATO Website.
Unsure where to start? 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.