Everything You Need To Know About GST Registration in Australia

If you run a business in Australia, you’ve likely come across the term GST. If you’ve wondered whether you have to pay GST, how to pay GST, or even had some confusion as to what GST is, you wouldn’t be alone. At Thornton & Associates, we aim to take the confusion out of business accounting and provide you with straightforward taxation and accounting advice that benefits your business. To help clear things up for you, we’ve compiled a short guide to GST and how to pay it when due. If you need any help with your company GST registration, don’t hesitate to contact Thornton & Associates’ team.

So, What Is It? A Few Things You Might Not Have Known About GST

Certain items are exempt from GST. Products such as fruit, vegetables, meat, spices, dairy, sauces, educational resources and courses, medical and healthcare products, and certain financial services are all GST exempt.

GST is redistributed throughout the country. All the money collected from GST is redistributed amongst the states to pay for infrastructure, roads, hospitals, and public schools.

Australia has one of the lower GST rates. In 2015, 30 countries were reviewed for their GST or VAT (value-added tax) rates, and at 10%, Australia paid the fourth-lowest amount of GST, beaten only by Switzerland, Japan, and Canada. The average GST/VAT amount paid is 19.2%, and Hungary pays the highest amounts of GST/VAT at 25%.

Do I Need To Register For GST?

Now you have a good understanding of what GST is; you might be wondering if your business is required to register. If you meet the following criteria, you’ll need to register your company for GST.

• If your business has an annual turnover of more than $75,000

• If your not-for-profit organisation has an annual turnover of more than $150,000

• If you provide a taxi travel or ride-sharing service (Uber, Didi, Ola, etc.), regardless of how much you earn

• If you want to claim fuel tax credits regardless of your GST turnover

What Responsibilities Come With A GST Registered Company

If your business is eligible to register for GST, you’ll need to ensure you do the following:

• Organise your GST registration

• Work out whether or not your products and services are subject to GST

• Issue tax invoices for all taxable sales and obtain tax invoices for all business purchases

• Claim GST credits for GST included in the price of your business purchases

• Keep collected GST aside so you can pay it when it’s due

• Lodge activity statements or annual returns to report sales and purchases

• Pay GST/receive a GST refund

If you need help organising your GST registered business and staying compliant, Thornton & Associates’ team can help.

If You Need Help With GST Registration, Leave It to the Team at Thornton & Associates

At Thornton & Associates, we do things a little differently. Even though the world is changing, evolving, and becoming more digitised, we noticed that the accounting industry lagged. We decided to bring innovation to accounting and become one of the first completely paperless practices in Sydney. We’re committed to using cutting edge technology and the latest accountancy software to provide our clients with practical, tailored accounting and business solutions. No matter what industry you’re in, Thornton & Associates can help you with all your finance management needs. Whether you already have a GST registered company or you need help with your GST registration, the team at Thornton & Associates can help. Give us a call or email us today to find out how we can help your business grow.

Our Story

Thornton & Associates was established to address the severely under serviced needs of growing and mid-sized enterprises in Australia. These businesses were in need of two tiers of help, that typically only large and multinational corporates were able to avail themselves of: firstly, the automation of basic day-to-day accounting operations; and secondly the provision of timely business consulting and tax advisory that is enabled when the books are able to take care of themselves.

As this two-tiered service strategy permeated the market, clients of Thornton & Associates realised that the considerable time and effort spent keeping ahead of accounting work that our firm could automate, is overwhelmingly better spent leading and strategising the operations of their respective businesses — and resulted in enduring business success.

Certified Xero Accountants

Xero is the most powerful growing and mid-sized accounting platform in the world, and is what enables Thornton & Associates accountants and business consultants to excel in servicing its clientele. Whether your business is using Xero or using another accounting product, Thornton & Associates can assist you in transitioning to Xero or empower you to use Xero to the fullest extent available by its constantly evolving and newer features.