Businesses in Australia with an annual turnover of less than $75,000 are not required to register for GST. However, they may voluntarily register with the Australian Taxation Office. If your business is a sole proprietorship or partnership, make sure it meets the following conditions:
– The business is registered and operates solely in one state or territory of Australia
– All inputs and activities are wholly related to your business (no other unrelated businesses)
– A proper balance sheet can show the use of this small company’s assets
Because your business meets these criteria, you needn’t register for GST unless you want to raise money through equity shares or enter into other commercial arrangements. Registering for GST is a legal requirement in some states, so if you’re running a small business selling goods to Australia, it’s important to know which states require this action.
If you’re unsure, start at the Australian Taxation Office website, which has an easy-to-use tool that will tell you whether or not your company needs to register. From there, if registering isn’t required, they’ll also provide exemption forms that save your business time and money.
If the tool doesn’t work, here’s what you need to use the form
Your business name and address (give ASIO your street address). Your tax year for which GST should be registered Your ABN – if you want to register for GST on a quarterly or monthly basis, give them your business details. A copy of your First Tax Return – if your business has a turnover of less than $75 000, you don’t need to file a tax return.
Why Register for GST
If your business is registered for GST, you can get a tax refund on expenses paid out of pocket. This includes phone, internet, and electricity bills, which means less cash is required from your annual turnover.
You can also claim any money spent on promotional materials, such as flyers for your business events or advertisements in local publications. Additionally, you may be eligible for a tax refund if you purchase stock for resales, such as printed materials or home office equipment.
What to do After Registering
Once registered with the ATO (Australian Taxation Office), you’ll receive an invoice for every job you complete. Make sure you pay your invoice on time, or you could be charged penalties and interest. That can cost thousands of dollars.
Australia uses simple and fair taxation laws so that you can work out a rough estimate. Based on your expenses and the amount of your annual turnover. Your tax return submission must be filed (and paid) within 30 days of receiving the ATO invoice.
8 Benefits of Registering for GST in Australia
- GST is easier to handle
- You can claim expenses on your tax return
- You can ask for refunds on expenses you paid out of pocket
- No filing forms are required for small businesses with a turnover under $75,000 per year.
- The ATO provides special forms for small businesses to reduce the number of hours spent on administration.
- You must register for GST to amend your tax return. Note that this will apply only if your turnover is over $75 000 per year. Or if your business operates in more than one state or territory of Australia.
- If your business has a turnover of over $ 75,000 per year and only operates in one state or territory of Australia, you may be required to register for GST by law.
- Registering for GST will reduce the business paperwork you handle daily and save you time.
Conclusion- What Kind of Small Businesses Need to Register for GST
If your business is registered, it can help to claim expenses and reduce the amount of tax paid. This way, the money saved from your annual turnover is used for other things like marketing or building your business. If this sounds interesting and convenient for your business needs, don’t waste time – contact us today!
