When do I need to register for GST?

The GST system is applied to most goods and services consumed in Australia. However, there are some exemptions and special rules that apply to certain goods and services. For example, some essential goods and services such as healthcare, education, and basic groceries are GST-free or are subject to a reduced rate of GST.

Businesses that are registered for GST must include the tax in the price of their goods and services and remit it to the ATO on a regular basis. Businesses can claim input tax credits for the GST they pay on their business expenses, such as rent, equipment, and supplies. This means that businesses can reduce their GST liabilities by the amount of GST they have paid on their expenses.

For businesses with an annual turnover of less than $75,000, GST registration is optional. However, businesses that choose to register for GST can still claim input tax credits on their business expenses, which can help reduce their costs and increase their profitability.

The GST system applies a flat rate of 10% to most goods and services. This makes it easier for businesses to comply with their GST obligations and reduces the administrative burden of tax compliance.

Businesses registered for GST are required to lodge a yearly, quarterly or monthly Business Activity Statements (BAS) with the ATO.