𝐘𝐨𝐮𝐫 𝐨𝐛𝐥𝐢𝐠𝐚𝐭𝐢𝐨𝐧𝐬 𝐮𝐧𝐝𝐞𝐫 𝐆𝐒𝐓?

Once you are registered for GST you have an obligation to lodge Business Activity Statements (BAS). This is additional administration work for small businesses and if your turnover is under $75,000 (registration threshold) you will need to consider if the additional work is worth the potential savings.

BAS can be lodged on a monthly, quarterly or annual basis. The ATO has rules on how often you are required to lodge, it depends on your income. However, you may lodge more frequent than required, this can help you manage your cash flow. E.g., you may want to have small monthly GST payments as opposed to one large one every quarter, hence you lodge monthly instead of quarterly.

Every sales invoice your business prepares is deemed to include GST, you need to ensure you charge the additional 10% to ensure you don’t shortchange yourself.

When a supplier sends you an invoice it’s up to you to ensure the ABN is correct and that they are registered for GST. You can check this by going to abr.business.gov.au. If your supplier is not registered for GST and they charge you GST, you cannot claim the GST credit if you pay the supplier in full.