GST
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide a taxi travel (including ride-sourcing) – you need to:
- Register for GST
- Work out whether your sales are taxable (that is, subject to GST, and not exempted because they are GST-free or input taxed) and include GST in the price of your taxable sales
- Issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
- Claim GST credits for GST included in the price of your business purchases
- Account for GST on either a cash or non-cash (accruals) basis and put aside the GST you collected so you can pay it to the ATO when due
- Lodge activity statements or annual returns to report your sales and purchases and pay GST to the ATO or receive a GST refund.
Claiming GST credits:
You can claim GST credits if the following conditions apply:
- You intend to use your purchase solely or partly for your organization, and the purchase does not relate to making input-taxed supplies
- The purchase price includes GST
- You provide or are liable to provide payment (whether monetary or non-monetary) for the item you purchases
- You have a tax invoice from your supplier (for purchases more than $82.50 including GST).
You should ensure your suppliers are registered for GST before you make a claim on your activity statement for the GST credits. You can check the GST registration status of an entity by searching the ABN Lookup tool.
When you cannot claim a GST credit:
You cannot claim a GST credit:
- Without a valid tax invoice
- For purchases that do not have GST in the price
- For wages you pay to staff (there is no GST on wages)
- For motor vehicles priced above a certain limit.
Goods and services that don’t have GST in their price include:
- GST-free items (such as basic foods)
- Input-taxed items (such as bank fees and loan interest)
- Purchases from a business that is not registered for GST or required to be registered for GST (as GST isn’t included in the price)
You also cannot claim GST credits for the following, even if GST is included in the price:
- Purchases you intend for use for private or domestic purposes
- Purchases you intend to use to make input-taxed supplies, such as those associated with providing residential accommodation
- Some purchases that you can’t claim as an income tax deduction, such as entertainment expenses
- Land purchases under the margin scheme