Tax Facts - GST

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

Some of the goods like water, fresh meat and vegetables, bank fee, interests, ASIC fee, stamp duty etc. are not GST applied.

Generally, businesses and other organisations registered for GST will:

• include GST in the price they charge for their goods and services

• claim credits for the GST included in the price of goods and services they buy for their business.

If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing) – you need to:

        register for GST

        work out whether your sales are taxable and include GST

        issue tax invoices for your taxable sales and obtain tax invoices for your business purchases

        claim GST credits for GST included in the price of your business purchases

        account for GST on both cash and non-cash basis sales and purchases and put aside

        lodge activity statements or annual returns to report your GST spent and received, and pay GST or receive a GST refund from ATO.

In our next week's tax facts, we will talk about how to issue a proper tax invoice.