The basics of GST Australia explained

GST AUSTRALIA

THE BASICS OF GST FOR ABN REGISTERED AUSTRALIAN BUSINESSES ANSWERED

  • What is GST
  • How to register for GST
  • What is a BAS
  • What are the options to record GST
  • How is GST calculated
  • What are the due dates for BAS
  • When GST is due for payment
  • I need assistance with my GST obligations

 

1. WHAT IS GST

Goods and Services Tax also commonly known as GST is the 10% tax you will notice on most goods, services and items sold or consumed in Australia.

2. DO I NEED TO REGISTER FOR GST

You MUST register for GST if:

  • Your business has a GST turnover (gross income minus GST) of $75,000 or more, or
  • Your non-profit organisation has a GST turnover of $150,000 per year or more, or
  • You provide a rideshare service e.g. Uber, Ola, Taxi etc. This applies to both owners and those who lease a rideshare vehicle, or
  • Your want to claim fuel tax credits for your business

3. HOW TO REGISTER FOR GST

It all starts with registering for GST with the Australian Taxation Office (ATO). You will need to advise the start date of the GST registration and whether you will be reporting on a cash basis or accrual basis. Our team at POP can help you register for free.

Note

Cash Basis = when cash goes in and out of bank account

Accrual Basis = report based on invoice date

Example
Invoice is on 29 September 2018, payment is made to the bank on 15 October 2018.

Cash = report on 15 October 18

Accrual = report on 29 September 18

4. WHAT IS A BAS

Now that you are registered for GST you will need to report the GST on your sales and expenses to the ATO on a document called the “Business Activity Statement” also commonly referred to as your BAS.

Your Gross Income will also be recorded on this document. After all these elements are recorded, this will either result in a GST payable or GST refundable which is dependent on your transactions. This must be done on at least a quarterly basis and the dates are shown below.