When it comes to paying GST as a small business owner there are a few facts you need to know.
This is taken from the ATO website as of 4 April 2017.
Link : httpss://www.ato.gov.au/Business/GST/How-GST-works/
What you need to do for GST
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing) – you need to:
- register for GST
- work out whether your sales are taxable (that is, subject to GST, and not exempted because they are GST-free or input-taxed) and include GST in the price of your taxable sales
- issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
- claim GST credits for GST included in the price of your business purchases
- account for GST on either a cash or non-cash basis and put aside the GST you collected so you can pay it to us when due
- lodge activity statements or annual returns to report your sales and purchases, and pay GST to us or receive a GST refund.
So as per the link above from the ATO website, you need to be earning more than $75,000 to actually register for GST and $150,000 or more for non-profit organisations. Many business owners are not actually sure how much they are earning or know how to lodge activity statements or claim GST credits in the price of their business purchases. It gets very complicated and for a small business owner who hasn’t had exposure to any of this before, it can really be quite daunting and overwhelming. That is why as a qualified Bookkeeper, my clients just hand it all over to me and say “Maree, can you fix this and work this all out and just let me know what I have to pay!”
That’s a common theme or comment I receive. So when it comes to GST, there is so much more you need to know. Even if your business hasn’t reached that level yet, but your getting close to earning $75,000 or more, it might be time to contact me to assist you so the transition is not stressful.
Don’t get in the habit of leaving things too late, even if you are a new business and haven’t even looked at GST, it’s better to start early and have your paperwork in order.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047 |