End Of Financial Year: All the info you need!
First things first: How do I know if I need to pay GST?
If you have a GST turnover of $75,000 or more from your business activities you will need to:
- register for GST
- include GST in the price of your taxable sales
- issue tax invoices for your taxable sales and obtain tax invoices for your business purchase
- 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 have collected so you can pay it to the ATO when due
- lodge activity statements to report your sales and purchases, and pay GST to the ATO or receive a GST refund.
What if I don’t have a turnover of more than $75,000?
Then you don’t have to register for GST. You may leave* now or continue reading if learning about GST tickles your fancy.
*We recommend reading on, as this information is very important and informative.
The Important Questions:
What does GST mean and why do I see it everywhere?
GST stands for goods and services tax. This is at a rate of 10% and assumes that 10% of every fee you make/receive will be GST.
Because I passed 5th grade math this can also be viewed as: If you receive $100, $10 of this will be GST
How do I report GST?
We’re glad you asked! Once you have registered for GST you will be required to fill out a BAS (Business Activity Statement). This is often done on a quarterly basis and is where you will need to make note and report your GST obligations.
While this can all be done on your own, you can also get your tax agent to do this for you. So if tax isn’t your thing and you have a lot on your plate tax agents definitely come in handy! Besides, how cool is it to say ‘I have a tax agent’.
Lodging your Business Activity Statement / Details on Quarterly Basis: What and How?
When your Business Activity Statement is completed the due date for lodging and payment will be displayed on this statement.
The below table assumes you will be paying quarterly, the most common option, and states the due date. Payment can either be made by paper (ol’ faithful) or online (much more convenient).
There is good news amongst all of this. You may be able to claim tax credit on any items, or goods and services, you purchase as part of your business. Some common examples are claiming tax credit on fuel and servicing costs of your vehicle if you use it drive for business purposes.
|Quarter/Months||Due date – By paper||Due date – Online|
|1 – July, August and September||28 October||11 November|
|2 – October, November and December||28 February||28 February|
|3 – January, February and March||28 April||12 May|
|4 – April, May and June||28 July||11 August|
Did you know?
The $10.95 subscription fee which you pay to us at theright,fit is also a taxable item, so since you are paying GST on that cost, a GST input credit for the fee is available.