Goods and Services Tax (GST) is a 10% tax applied to most goods and services sold or consumed in Australia. If you run a business you may be required to register for GST. This applies to sole traders, companies, partnerships, and trusts carrying on a business in Australia.
What is GST?
GST is a consumption tax collected by businesses on behalf of the ATO (Australian Taxation Office). When you’re registered for GST, you charge GST on your sales and claim back GST credits on your business purchases (input tax credits). The net amount is then reported and paid to the ATO via your Business Activity Statement (BAS).
Who Needs to Register for GST?
You must register for GST if:
- Your business has a GST turnover of $75,000 or more per year
- You provide taxi, rideshare, or limousine services (regardless of income)
- You want to claim fuel tax credits
- Your organisation is a non-profit with turnover of $150,000 or more
GST turnover includes gross business income (excluding GST), not profit.
When Should You Consider Registering?
Even if you’re below the $75,000 threshold, voluntary registration may be beneficial in certain situations:
- You have high startup or operating costs and want to claim GST credits
- You expect to exceed the threshold soon
However, registering too early can increase compliance costs and cash flow pressure if not managed correctly.
How Nobel Thomas Helps with GST
At Nobel Thomas, we assess whether registration is actually beneficial based on your circumstances.
We help you:
- Determine if and when GST registration is required
- Set up and manage BAS reporting efficiently
- Integrate GST into your accounting systems (e.g. Xero)
- Avoid common compliance pitfalls and ATO penalties
FAQs
- What happens if Idon’tregister when required?
You may face penalties and be liable for GST, even if you didn’t charge it to your customers. - Can I cancel my GST registration later?
Yes, if your turnover drops below the$75,000 threshold. - Do I charge GST on all sales?
No. Some sales are GST-free (e.g. basic food, exports,residential rent). - How often do I lodge BAS?
Typically quarterly, but some businesses lodge monthly depending on size and preference. - Is GST based on profit or revenue?
Revenue (turnover), not profit.
Take the Next Step
If you’re unsure whether GST applies to you, getting it wrong can be costly. The right advice upfront can save significant time and money.
Contact Nobel Thomas today to assess your situation position and ensure your business is compliant from day one.
