What Businesses Need to Know

Getting Started with GST

GST is a 10% tax on most goods and services in Australia. If your business makes $75,000 or more annually, you need to dive into the GST pool. We'll cover the basics and help you stay penalty-free.

Do I Need To Register For GST?

You HAVE to register for GST if:

• Your business makes $75,000 or more in GST turnover.
• GST turnover = Gross Income − GST.
• Your non-profit organization has at least a GST turnover of $150,000 and/or more annually.
• You provide rideshare services (e.g., Uber, Ola, Taxi) as an owner or a vehicle leaser.
• You want to claim fuel tax credits for your business.

How To Register For GST?

To register for GST in Australia, follow these simple steps:

• Contact the Australian Taxation Office (ATO).
• Inform them of your desired GST registration start date.
• Choose whether you'll be reporting on a cash basis or accrual basis.

What does that mean?

Cash Basis: Record transactions when money goes in or out of your bank account.

Accrual Basis: Report based on the invoice date, regardless of when the money is received.

For example:

If you invoice on September 29, 2018, and receive payment on October 15, 2018:

• Cash Basis: Report on October 15, 2018.
• Accrual Basis: Report on September 29, 2018.

Need help registering? Our team at i-accountant can assist you for free.

What is BAS?

Now that you're in the GST club, it's time for some paperwork. You'll be jotting down your sales, expenses, and gross income on a form called the "Business Activity Statement" or BAS for short. Depending on your transactions, this could lead to either paying or getting back some GST. And don't forget, you've got to do this at least once a quarter!

How to Keep Track of GST?

Tracking your GST doesn't have to be complicated. Here are two easy options:

Bank Statement Method

• Regularly check your bank statement.
• Record GST for Sales and Expenses in a spreadsheet.
• At the end of each reporting period, refer to the spreadsheet for accurate amounts.

Accounting Software

• Use software like Xero, MYOB, or Quickbooks.
• Link it to your bank account for seamless transaction categorization.
• Our i-accountant team can help you set up the software correctly, saving you time and headaches.

Conclusion

Mastering Australian GST isn't just about rules—it's a strategic move for your business. Navigating GST might be a challenge, but armed with i-accountant, your business can not only survive but thrive in the Aussie GST landscape!