You must register for GST if:

• Your business has a GST turnover of $75K or more
• Your non-profit organisation has a turnover of $150K per year or more
• You provide taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover. This rule applies to both taxi owner drivers and people who just rent a taxi.
• You can also voluntarily register for GST even if your gross income is less than $75K

As a business owner, it’s your responsibility to register for GST if your turnover exceeds the $75K threshold or is likely to exceed it.

The ATO advises that if you’ve just started a new business and expect it to earn $75K or more in its first year of operation, you should register for GST.

GST turnover is your business’s gross income, not your business’s profit.

 

What is GST Credits?

GST credits are a potential amount of money your business might be able to claim from the ATO.

If you are registered for GST, you can claim back the GST that has been included in the purchase price of something you’ve bought for your business.

 

Who should charge GST and claim GST Credit?

Only businesses registered for GST that must include GST on their invoices (Tax Invoice) and also able to claim GST on their business related Purchases unless they are GST-free or input taxed.

Tax invoices must be formatted correctly for you to be able to claim you full tax entitlements.

If the purchaser is a private consumer or an unregistered entity, it cannot claim back the GST on the purchases they made.

Non-profit organisations may be entitled to concessions on some transactions.