If your GST turnover is under $75,000 and you don't register for GST, you won't include a GST component in your prices. This means that any invoices you provide will need to show that GST was not included in the purchase price. You also can't claim GST credits for your business purchases.
In Australia, if a business or enterprise does not register for the Goods and Services Tax (GST) when it is required to do so, it can face significant consequences. Businesses must register for GST if their annual turnover exceeds the threshold of $75,000, or $150,000 for non-profit organisations. Failure to register can result in penalties, including fines and interest charges.
The Australian Taxation Office (ATO) may impose a penalty of 20 penalty units for failing to apply for or cancel GST registration as required. Additionally, if GST is not included in the prices of sales because of failure to register, the business cannot claim GST credits for the GST included in the price of purchases. In some cases, the ATO may also request that GST be paid on the excess amount earned, along with a fine and interest.
It's important to note that once a business is required to register for GST, it must do so within 21 days. For non-residents conducting business in Australia, there may be different requirements for GST registration. To avoid these penalties, businesses should monitor their turnover and register for GST promptly when necessary.