Your guide to the Goods & Services Tax (GST)

Everything you need to know about GST including thresholds, rates & how to register for it!

What is GST?

GST stands for goods and services tax. It’s a 10% tax that’s added to nearly everything you buy in Australia. Generally speaking businesses include GST in the price of sales to their customers, collect the extra money and pay it to the Australian Taxation Office (ATO) when it’s due. Read the article to learn more.

Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.
Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.

How to register for GST

If your annual turnover is above $75,000, you’ll need to register for GST with the ATO. Check out our article below for more information on when and how to register for GST.

How to calculate GST

As a GST registered business you need to increase your prices by 10%. The best way to work out your new price is to multiply your original price by 1.1. Check out our article below for formulas and more information on calculating GST.

Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.
Government assistance packages.  New Zealand will be rolling out a range of support packages and assistance aimed at reducing economic impacts on businesses due to COVID-19. It’s one of the largest in the world on a per capita basis and businesses are being urged to make full use of what is available to them. Let’s review the primary business support measures being rolled out.

How to claim a GST refund?

Almost all business purchase that include GST can be refunded by the ATO. These are called input tax credits. GST credits can be claimed through your quarterly BAS statement submitted to the ATO. Read the article to learn more.

 

Free GST guide

There’s a lot to get your head around when you’re starting a new business, and GST is just one bit most fledgling business owners will need to get to grips with. If you’re looking for help, download our free guide to better understand GST.

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Frequently asked questions

When did GST start in Australia?

The Goods and Services Tax came into effect on 1 July 2000. Its  goal of the tax was to unify & simplify the existing sales tax system and other differing state and territory taxes with a single 10 per cent tax.

What is the GST threshold?

​You must register for GST in Australia, by law, if you conform to the following circumstances:

  • Your business has an annual income of over $75,000.
  • Your non-profit entity has an annual income of over $150,000.
  • You operate a taxi service or business, including ride share services such as Uber, regardless of your annual income.
What is GST turnover?

GST turnover is your total business income. Not just business profit. To calculate your GST turnover you need to calculate your total business income minus any of the following;

  • GST included in sales to your customers
  • sales that aren’t for payment and aren’t taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia.

Learn more

What is the GST on exports?

Exports of goods and services from Australia are generally GST-free. If you’re registered for GST, this means:

  • you don’t include GST in the price of your exports
  • you can still claim credits for the GST included in the price of purchases you use to make your exported goods and services.

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