Do you need to register for GST?
Whether or not you’re required to register for GST largely depends on two things.
If your business has a GST turnover of $75,000 or more
You must register for GST when your business has a GST turnover (gross income minus GST) of $75,000 or more. This is known as the ‘GST threshold’.
There are a few additional factors to be aware of regarding the GST threshold. For full details, please see the relevant page of the ATO website.
If you provide taxi or limousine travel for passengers (including ride-sourcing)
If you provide this kind of service, you are obliged to register for GST regardless of your GST turnover – this applies to both owner-drivers and if you lease or rent a taxi.
When must you register for GST?
There’s a common misunderstanding that GST registration happens automatically. It doesn't. If you haven't registered for GST yourself, you are not registered for GST.
You must apply for GST if your business reaches the GST threshold. There are some specifics on the timing based on your business's circumstances. Check out the ATO website for more information.
What happens if I don’t register for GST?
If you don't register for GST when you’re supposed to, the ATO will more than likely find out eventually. If that happens, you may have to pay GST on sales made since the date you were required to register - even if you didn't include GST in the price of those sales. You may also have to pay interest on the GST owed, and maybe even a penalty too.
When do you start charging GST?
Once you have registered for GST, you are legally obliged to start collecting it immediately. This is as simple as adding 10% to the amount you would normally charge. It’s a good idea to keep your GST money in a separate business savings account. Not only will it all be in one place when the ATO comes a-knocking, you’ll earn interest on it too.
Set your business up for success with the Great Southern Bank
It’s easy it is to open multiple Business+ Saver Accounts either online or in the Business+ app. You can:
- Open separate business savings accounts for your tax, GST, and other obligations.
- Enjoy a competitive interest rate on each account to help you reach your savings goals sooner.
Why not get started today?
