Goods & Services Tax

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Businesses and other organisations registered for GST will include GST in the price they charge for their goods and services and claim credits for the GST included in the price of goods and services they buy for their business.

If you run a business and have a GST turnover of $75,000 or more, you need to:

Register for GST – If your business does not have a GST turnover of $75,000, registration is optional. You will need an Australian Business Number (ABN) to register and this can be done using Progue or via the Australian Business Register.

Work out whether your sales are taxable – The goods and services you sell in Australia are taxable unless they are GST-free or input taxed.

Issue tax invoices for your taxable sales and obtain tax invoices for your business purchases – When you make a taxable sale of more than $82.50 (GST inclusive), your GST registered customers need a tax invoice from you to be able to claim a GST credit. A tax invoice must be provided within 28 days if requested.

Claim GST credits for GST included in the price of your business purchases – You can claim a GST credit included in the price of any goods and services you buy for your business.

Account for GST – You will need to issue tax invoices to your customers, collect GST and send it to the Australian Taxation Office (ATO) with your Business Activity Statement (BAS).

Lodge activity statements or annual returns to report your sales and purchases, and pay GST to the ATO or receive a GST refund.

There are GST definitions that a regularly used in this process which you should familiarise with should you come across them.