If you have a turnover (total sales) of $75,000 or more, you are required to be registered for GST.
GST is included in most transactions, but here are some to look out for:
- Business names, licences, ASIC annual returns are all GST Free
- The CTP on a car has components that do not have GST on them
- When you purchase a car, some items have GST and some do not
How it works:
- When invoicing a client, you need to add 10% GST onto the sale price.
Every month or quarter you report to the ATO your total sales, the GST you have collected on those sales, less the GST on the items you have
Depending on if you report on a cash basis (most small businesses do), or accruals, will determine the amount of GST – for cash it is
the amounts actually received and paid, whilst accrual is on all invoices raised as sales or purchases.