Should your business be registered for GST?

Written By Guest User

A common question we get asked by business owners is “do I need to register for GST?”

Let us tell you what you need to know!

Hang on… what is GST?

GST (Goods and services tax) is a tax of 10% on most goods, services and other items sold or consumed in Australia.

When does a business have to register for GST?

You must register for GST if:

  • your business has a GST turnover of $75,000 or more

  • your non-profit organisation has a GST turnover of $150,000 or more

  • you provide taxi or limousine travel (including ride-sourcing services like Uber) regardless of your GST turnover

(When we refer to turnover, this means your business's total income or sales)

GST turnover is your business's gross income, not your business's profit.
As a business owner, it's your responsibility to register for GST if your turnover exceeds the $75,000 threshold or is likely to exceed it. Whilst this is your responsibility, this is also a service we take care of for our clients. 
The ATO (Australian Taxation Office) advises that if you've just started a new business and expect it to earn $75 000 or more in its first year of operation, you should register for GST.

What does that mean for me if I register for GST?

  • You will then likely have to increase your rates by 10% to account for the GST component so you are not losing 10% of your sales

  • Being registered for GST then means you will have to report your GST on income & your GST on expenses to the ATO on a monthly, quarterly or annual basis via a Business Activity Statement (BAS) (psst... we prepare and lodge these here at Fenwick Collective!)

Want to learn more? Click this link here.

Need to register your business for GST?

Guest User
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