Anonymous
Anonymous

Taxation

Do I need to register for GST?

I'm starting a new business. As I'm unsure how much I will make, should I still register for GST?

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1 Answer

Daniel Spark

Daniel Spark , Director at D&M Spark Enterprises PTY LTD

If you are starting a new business and expect to turnover less than $75,000 AUD (unless you provide taxi travel for passengers in exchange for a fare) registering for GST is optional. However, the ATO only gives you 21 days from the time you are aware that you will turnover more than the threshold to register for GST and they advise you to check monthly to ensure you are aware when you meet the threshold.

If you do not register for GST then you also do not charge GST to your customers and you will not be able to claim GST credits on your purchases. There are also special requirements in regards to invoices and tax invoices that you need to follow depending on what you choose to do.

You can find great information on GST at the Governments Business website, including some examples:
https://www.business.gov.au/info/run/tax/register-for-goods-and-services-tax-gst

The ATO has also recently started a community forum, where you can get official answers from the ATO if you need more help:
https://community.ato.gov.au/

You may want to consult an Accountant for their professional perspective. The answer to your question will greatly depend on your expected turnover.

I personally, depending on the venture would not register for GST until I gain moment with sales. Everything going well you will turn over more than $75,000 and be required to register.

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