Do you need to start with GST and BAS? No worries. Even though it takes a little extra admin, thousands of businesses can do it. With this guide, you will too.
Find out if you need to register and how to do so.
You can volunteer to register for GST if your annual turnover is under the threshold. Registration for GST has its perks, but there are additional considerations as well, so it’s best to take your time and weigh up your options. You need to register within 21 days of your GST turnover exceeding the relevant threshold.
A company based in Australia with a revenue of more than $75,000 per year.
Taxis, limousines, and Uber drivers must register regardless of their income.
Those claiming fuel tax credits.
Not-for-profit organisations that generate $150,000 or more per annum.
Once you are GST registered, you won’t have to pay GST on business expenses. GST-inclusive prices are still applied when you make the purchase, but you will receive the refund when you file your tax return.
What you will need to register for GST
Before you register for GST, an Australian Business Number (ABN) is required. If you are registering a company, you will need an Australian Company Number (ACN) before applying for your ABN.
You can register for GST yourself online or through the ATO business portal, and it costs you nothing. Or through a registered tax or BAS agent.
There are other ways to register by calling the ATO on 13 28 66 or by completing a form NAT 2954 but the main way for businesses to communicate with ATO is through the business portal.
Once your registration is effective, you will receive your registration details in writing from the ATO.
Which accounting basis should you choose?
A small business may be able to use cash accounting. Those businesses only owe GST on a sale when the customer pays.
There are some businesses that must use accrual accounting. As a result, they owe GST on sales when they raise an invoice or when they get paid, whichever is first.
After you have registered for GST, you must add 10% GST to your prices.
Tax Invoices will need to be issued to your customers.
Finally, you can apply to backdate your GST registration by no more than four years.