Goods & Services Tax (GST)
GST is a broad-based tax of 10% on the sale of most goods and services in Australia. You must register for GST if your expected annual turnover is $75,000 or more.
If you are a business that is required to register for GST you must get an ABN (Australian Business Number). If you are running a business it is best to have an ABN (even if you are not required to register for GST) as other businesses you deal with have to withhold 46.5% from their payments to you if you do not quote an ABN.
An ABN is different from an ACN (Australian Company Number), which is a number given to any Pty Ltd company registered with the Australian Securities & Investments Commission (ASIC). An ABN is available to any business, which include sole traders, partnerships, companies and trusts.
If you are registered for GST you will be required to report the GST collected and paid by your business to the ATO either monthly, quarterly or annually (depending on the size of your turnover) via a business activity statement (BAS). Business with a turnover of more than $20 million must report and pay GST monthly and lodge your activity statements electronically, other businesses may report monthly if they wish.
If you need help with registering your business for GST or any other registration or you have any questions or need assistance with meeting your obligations please do not hesitate to contact our office