GST — Goods and Services Tax

Registration is mandatory once your GST turnover hits $75,000 in any rolling 12-month period (or $150,000 for not-for-profits, $0 for taxi and rideshare drivers from day one). Registration is also mandatory if you want to claim fuel tax credits or Wine Equalisation Tax credits regardless of turnover.

Most goods and services sold in Australia carry 10% GST. Notable exceptions: fresh food and basic groceries (GST-free), most health and education services (GST-free), residential rent (input-taxed, no GST charged), exports (GST-free), and most financial supplies (input-taxed). 'Input-taxed' means no GST is charged on the sale, but the supplier can't claim GST credits on related expenses either.

Registered businesses charge 10% GST on taxable sales (output GST), claim credits for the GST on most business purchases (input GST), and report the difference each quarter on the Business Activity Statement. If output exceeds input, you owe the ATO; if input exceeds output (common for businesses making large purchases or in start-up phase), the ATO refunds the difference.

For sales of $82.50 or more (GST-inclusive), you must issue a valid tax invoice if the customer asks. The invoice must show: your business name, your ABN, the words 'tax invoice', the date, a description of what was sold, the GST amount (or a statement that the price includes GST), and the customer's identity if the sale is over $1,000.

Below $75,000 turnover, you can register voluntarily. Pros: customers expect a tax invoice, you can claim GST credits on inputs, you look more established. Cons: you charge 10% more so you're effectively pricier than non-registered competitors, and quarterly BAS becomes a recurring obligation. We'll model both scenarios for any client below the threshold.

· Charging GST while not registered (illegal — the ATO will demand the GST be remitted regardless) · Forgetting to add GST to a quote then having to absorb the 10% on completion · Claiming GST on private-use portions of mixed-use purchases (cars, phones, internet) · Late-registering retrospectively without back-paying the GST that should have been collected · Treating an input-taxed supply (e.g. residential rent) as a taxable supply and charging GST on it

If your turnover is approaching $75,000, if you're not sure whether something you sell is taxable, or if a BAS hasn't been lodged for a while — bring it to us before the ATO writes to you. Late lodgement carries a flat penalty plus general interest charge that compounds.