There is no definitive answer to this question, as it depends on your business situation and preferences. However, here are some pros and cons of registering for GST when your turnover is less than $75,000:
Pros:
- You can claim GST credits for the goods and services you buy for your business, which can reduce your costs and increase your cash flow.
- You can hold the GST you collect until the payment is due, which can also help your cash flow. However, you need to make sure you have enough money to pay the GST when it is due.
- You can improve your business image and credibility, as registering for GST signals that you have a larger or more established business.
Cons:
- - You have to add 10% to your prices, which can make your products or services less competitive or attractive to your customers, especially if they are not registered for GST themselves.
- - You have to keep track of your GST transactions and report them to the ATO every quarter, which can increase your administrative and compliance burden.
- - You have to pay GST even if you haven’t received the payment from your customers, which can create cash flow problems.
Ultimately, the decision to register for GST or not is up to you and your business goals. You should consider the benefits and drawbacks of GST registration, and consult a tax professional if you need more guidance. I hope this helps you make an informed choice.
It is advisable to consult with a financial advisor or simply contact Namecorp’s Support and Compliance Team either by phone on 1300 006 263 or via email at support@namecorp.com.au and they will assist or provide further clarification for you over the phone.