Do you need to register for GST?
One of the first things you need to do when starting a business or contracting as an individual is to understand the implication of the GST system.In particular, do you need to register for GST?
The Federal Government requires entities including individuals to consider if they have to register under the Goods and Services Tax (GST) system.
You must register for GST if:
- your business or enterprise has a GST turnover (gross income minus GST) of $75 000 or more
- your non-profit organisation has a GST turnover of $150 000 per year or more
- you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi
- you want to claim fuel tax credits for your business or enterprise.
If your business or enterprise doesn’t fit into one of the above categories, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.
If you do register you must complete Business Activity Statement either monthly or quarterly depending on what you indicated in your registration.