Understanding GST: A Complete Guide for Australian Businesses

What is 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. If your business has a GST turnover of $75,000 or more, you must register for and collect GST.

When Do You Need to Register?

You must register for GST if your business has a GST turnover at or above the registration threshold of $75,000 ($150,000 for non-profit organisations). You can voluntarily register below this threshold, which can be beneficial if you have significant business expenses.

How GST Works

When you register for GST, you:

• Add 10% GST to the price of taxable goods and services you sell
• Issue tax invoices to your customers
• Claim GST credits for the GST included in business purchases
• Lodge Business Activity Statements (BAS) to report and pay the difference

Input Tax Credits

One of the key benefits of being registered for GST is the ability to claim back the GST you paid on business purchases. These are called input tax credits or GST credits. To claim these, you must have a valid tax invoice for purchases over $82.50.

Common GST-Free Items

Not everything is subject to GST. GST-free items include: fresh food, health services, educational courses, childcare, and exports. Understanding which of your sales are taxable and which are GST-free is critical to accurate reporting.

Need help managing your GST obligations? Our BAS agents can handle your quarterly lodgements and ensure you're claiming every credit you're entitled to.