30 Jan Do I need to register for GST?
Turnover of $75000 ($150,000 non-profit) means you must register for GST.
If your business has a turnover of $75,000 per year or more you have to register for GST and charge GST. Turnover is the total income your business receives from trading. It is calculated by looking at the current month plus the previous 11 months. Therefore you need to register as soon as your business achieves this level, no matter when in the financial year it occurs. Not for profit organisations need to register once turnover reaches $150,000.
There are also other special circumstances where you may wish, or be required, to register.
Taxi or limousine services need to register regardless of turnover. If you want to claim fuel tax credits then you will need to register. Also if you sell goods without GST levied (for example food) you may want to register as you can then claim back GST on your expenses and improve cash flow.
If you are not required to register for GST and do not wish to voluntarily you still need to comply with the ATO tax invoice requirements, especially in notifying customers that you do not charge GST.
Please refer to my blog on the correct way to set out a tax invoice.
From the ATO website:
ATO Guidance:
- You must register for GST if:
- your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more
- your non-profit organisation has a GST turnover of $150,000 per year or more
- you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi
- you want to claim fuel tax credits for your business or enterprise.
If your business or enterprise doesn’t fit into one of the above categories, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.
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