GST, or Goods and Services Tax, is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. It is an indirect federal sales tax that businesses add to the price of their products, which customers pay at the time of purchase.
The collected GST is then forwarded to the government. If you are running a business or other enterprise and have a GST turnover of $75,000 or more, or $150,000 or more for non-profit organizations, or if you provide taxi travel (including ride-sourcing), you are required to register for GST. Registration is also necessary if you wish to claim fuel tax credits. However, if your turnover is below these thresholds, GST registration is optional.
It's important to consider that once registered for GST, you must include GST in the price of your taxable sales, issue tax invoices for your taxable sales, claim GST credits for the GST included in the price of your business purchases, and lodge activity statements or annual returns to report your sales and purchases.
Deciding whether to register for GST involves assessing your current and projected turnover, the nature of your sales, and the benefits of claiming GST credits.
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.