What is the GST registration process? To register for GST, you have to first have an Australian business number (ABN). Once you have an ABN, and you reach the GST threshold, you register for GST by either going to the Online services for business, calling the ATO on 13 28 66 or going via your registered tax agent or BAS agent.
What are the penalties for not complying with GST? If you meet the GST threshold, but you don’t register for GST, you might have to pay GST on all sales since the day you were required to register. You might also have to pay penalties and interest.
For specific information regarding your business, you should speak to a tax agent or an accountant.
Who needs to register for GST? Businesses, freelancers, sole traders and non-profit organisations have to register for GST if they meet a certain threshold.
For businesses, freelancers and sole traders the limit is $75,000+ for the last 12 months.
For non-profit organisations the limit is $150,000+ for the last 12 months.
If you provide taxi or limousine travel for passengers you have to register for GST regardless of your turnover. The same applies if you want to claim fuel tax credits for your business.
How to calculate GST for freelancers? Freelancers who are registered for GST, pay the same GST rate as everyone else: 10%. This means that you should add 10% GST on top of your prices.
Work out your prices with the GST calculator.
How can a GST calculator help you? A GST calculator helps you quickly and accurately work out how much GST to charge when you sell products or services. You can work out the GST amount, as well as the price including and excluding GST.
How can free invoicing software help you? If you use free invoicing software, GST will also be calculated automatically for you. Simply enter what you’ve sold and the tax will be applied.
Your products and services are also saved, including their tax rate, so that they can be added to future invoices with the click of a button.
Try free invoicing software now
Why do we have GST? GST is one type of tax. It’s sometimes called consumption tax. Consumption tax is a tax that individuals pay on the sale of goods and services. It helps fund public services like education, healthcare and public transportation.
As a business, you claim GST from clients and pay GST to suppliers. However, what you collect and what you pay should work out to 0. If you’ve claimed more GST than you’ve paid, you’ll pay the difference to the ATO. If you’ve paid more than you’ve claimed, you’ll get a GST refund from ATO.
See also: What is GST?
How much is GST in Australia? The GST rate in Australia is 10%. Some items are GST-free, and these should not have GST added to the price.
How to calculate GST inclusive? If you want to calculate how much the price is including GST, then you take the original price times 1.1. If you sell an item for $200, then the GST inclusive price would be:
$200 x 1.1 = $220
What items are GST-free in Australia? Certain items are GST-free. This means that GST should not be added when these goods or services are sold. The list of GST-free items includes basic food, international transport, exports, and some education courses, medical services, charitable activities and so on. You should check out the ATO website for detailed information, or consult a tax agent or accountant for specific questions regarding your business.
What’s the difference between GST inclusive and GST exclusive? GST inclusive is the price including GST. To work out the GST amount that has been added you divide the price by 11:
$110 / 11 = $10
GST exclusive is the price excluding VAT. To figure out how much GST to add you multiply the price by 11:
$110 x 11 = $121
How do I report and pay GST to the ATO? When you register for GST, you choose how often you want to report and pay GST. To report GST to the Australian Taxation Office (ATO), you’ll lodge what’s called a business activity statement (BAS).
Does net include GST? Gross is a total amount, net is an amount after deductions like tax or discounts have been made.
Net is the price excluding GST, for example $100
Gross is the price including GST, for example $100×1.1 = $110
