You might now know the Goods and Services Tax (GST) in Australia and wonder what it is all about. There has been a lot of information shared on social media channels, but many people still do not know much about GST or why they need to register for it.
So here we will try to explain the basics involved with GST registration as simple as possible:
The Australian government has introduced a new simplified tax system called the Goods and Services Tax (GST). All businesses will need to register for GST to continue trading. Registering your business under this new tax regime should be done at least 30 days before you become liable for it.
What Is GST Registration Threshold?
GST registration threshold is the minimum turnover of a business per year, which you must achieve to become eligible for GST Registration.
What Is The Cost Of Getting Registered For GST?
The cost of getting registered for GST in Australia depends on your expected Annual Turnover and whether you will charge or claim input tax credits (ITC).
There will also be charges if you provide goods and services that attract excise duty, such as tobacco, petroleum products, alcoholic beverages, and extra fees charged by the ATO due to under-reporting liabilities, etc.
All these factors collectively contribute towards what costs should I expect when applying for Australian Goods & Services Tax registration? And another important thing(s) that affect GST registration.
Why Should I Apply For GST Registration?
The benefits of getting registered for the Goods & Services Tax (GST) include:
- Having a simpler, more streamlined tax system and easy to manage your business taxes online using Point of Sale or other software.
- In addition to reducing compliance costs, you no longer have to complete separate BAS statements for each state/territory where you operate from. Instead, you can submit just one set per year on time every quarter.
- Also simplified collection process with less chance of under-reporting liabilities etc.
6 Steps To Prepare For GST Registration
Step #01 – Registering with the government for a unique number as soon as you are ready to sell your products in retail outlets or supply your services to clients and customers.
Step #02 – Preparing a detailed business plan for your company and prioritizing what sort of products or services you will sell as part of GST registration in Australia.
Step #03 – Understanding how GST registration affects your business finances and the taxes you will need to pay as part of this new tax system in Australia.
Step #04 –Preparing a detailed list of all the goods and services you will begin to sell as part of GST registration in Australia.
Step #05 – Understanding how GST registration affects the overall business structure and legal requirements for your company.
Step #06 –Preparing all the necessary documents and application forms you will need to complete for your company to apply successfully for GST registration in Australia.
The process of GST registration in Australia is quite simple. We’ve covered the basic steps here, but there are many more details that you need to get familiar with. Now go out and make your business ready for this new change; we want to see everyone successfully registered!