Question 1

What is GST and who needs to register?

Accepted Answer

The Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. You must register for GST if your business has a GST turnover of $75,000 or more ($150,000 for non-profit organisations).

Question 2

What is a Business Activity Statement (BAS)?

Accepted Answer

A BAS is a form submitted to the Australian Taxation Office (ATO) by all businesses registered for GST. It's used to report and pay GST, PAYG withholding tax for employees, and other tax obligations.

Question 3

What's the difference between Cash and Accrual accounting for GST?

Accepted Answer

With the **Cash** method, you account for GST in the period you actually receive payment for sales or make payment for purchases. With the **Accrual** method, you account for GST in the period you issue an invoice for a sale or receive an invoice for a purchase, regardless of when money changes hands. Small businesses (turnover < $10 million) can generally choose either method.

Question 4

What are 'GST-free' sales?

Accepted Answer

Some goods and services are exempt from GST. These include most basic food items, some medical and health services, and some educational courses. You don't charge GST on these sales.

Question 5

Why can't I claim GST on all my purchases?

Accepted Answer

You can only claim a GST credit on business purchases that had GST included in the price. Some purchases, like bank fees, interest, or items bought from a business not registered for GST, do not include GST and therefore have no credit to claim.

Question 6

When is my BAS due?

Accepted Answer

For quarterly reporting, your BAS is typically due on the 28th day of the month following the end of the quarter (e.g., the September quarter BAS is due on 28 October). Monthly reporters are usually due on the 21st of the following month.

GST Calculator for Australian Small Business (BAS)

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How to Prepare Your BAS in 3 Steps

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Calculate Net GST

Frequently Asked Questions