Jun 14 2022
Jun 14 2022

Do I need to register my business for GST?

What is GST?

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

How is GST collected? 

When a customer buys something from your place of business, you must add an extra 10% to the price of the goods or services and manage the GST from the customer. You then send the money to the ATO, who will distribute it to the State and Territory Governments in the same proportions in which income tax is distributed.

What is a tax invoice? 

A tax invoice is an official document that records tax details for sale. It provides details about the goods or services for sale, including their quantity, price, GST amount, and whether or not the deal includes any other charges, such as delivery fees or taxes. There are some items and services that are not taxable. They are GST-free. Most standard items like fresh food, education and medical services are GST-free.

Why do you need to register for GST?

If GST applies to your business, we recommend you register for GST and collect the extra tax from your customers. If you are in business and need to make a GST claim, you will have to charge GST on your public-facing products. You can claim the GST you pay on business expenses as a deduction to your business income in your tax return.

Before you register for GST, you need to have an ABN. If you don't already have one, we can help you set one up. It's also a good idea to register for a business name. Registering a business time in Australia is essential to starting up a business.

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It's not compulsory to register for GST if you're a small business with a turnover of less than $75,000. Any Australian company that sells more than $75,000 worth of goods or services per year can't claim the GST-free threshold. You will be given a business name registered with the Australian Securities and Investments Commission (ASIC) when you register your business.

To learn more about GST and how it applies to your business, including what to do if you run a business without registering for GST, see the ATO's information on GST and the tax return process.

What is a GST turnover? 

Your GST turnover is the total of your gross income minus your tax-free, GST-free and input-taxed sales. The tax-free and input-taxed sales don't count in your GST turnover. GST turnover is your business's gross income, not your profit. As a business owner, it's your responsibility to register for GST if your turnover exceeds the $75,000 threshold annually or is likely to exceed it.

If you don't register for GST when required, you may face a penalty for late registration. The ATO advises that you should register for GST if you've just started a new business and expect it to earn $75,000 or more in its first year of operation.

To claim GST-related expenses, you must be registered for GST. If people play around with made-up business names, they are operating illegally in that case, and if caught, they would be ordered to cease using that trading name and face fines as applicable.

Business name registration time tends to be reasonably quick and easy, but there is a limitation. The name you choose cannot be too similar to other businesses already operating in Australia.

Go to www.my.servepoint.com.au, register as a new user and select "Register GST". 

For more information and to apply online, visit our online dashboard at www.my.servepoint.com.au.

Namecorp Vs ASIC

Our Namecorp business experts have decades of experience working with ASIC and the Australian Government. If you're an Australian business looking to get your business name registered, we can help you get it done quickly, smoothly, and with no messy paperwork. Learn more about our services here.Discover Our Services