When you commenced your business, you may have fallen well below the income threshholds required to necessitate GST registration. This is however a matter that needs to be considered on an ongoing basis.
You must register for GST if:
- your business or enterprise has a turnover of $75 000 or more
- your non-profit organisation has a 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 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 you're not registered for GST, check each month to see whether you've reached the threshold, or are likely to exceed it. If your turnover exceeds the relevant threshold, you must register within 21 days of reaching it.
If you don't register for GST and are required to do so, you may have to pay GST on the sales you have made since the date you became required to register. This could happen even if you did not include GST in the price of those sales. You may also have to pay penalties and interest.
For further information see the Australian Taxation Office website at:
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.