The deadline for annual Goods and Service Tax (GST) returns is fast approaching. You can either lodge your GST return monthly, quarterly or annually depending on your eligibility. If your business reports annually, you must complete the return to report GST by the 28th of February and calculate the amount you owe the Australian Taxation Office or the amount they owe you.
What is GST?
The GST is a tax that was first introduced in 2000 and is applied to most goods and services in Australia. The current rate of GST is 10%. This charge is added to the original price of relevant goods and services and then passed on to the ATO by businesses.
You must lodge your annual GST return and pay any amounts owing by the date shown on the front of the return. This date will be the same date your income tax return is due to be lodged. If you are not required to lodge an income tax return, the due date will be 28 February following the end of the annual tax period.
GST can be paid monthly, quarterly or annually. You receive an annual GST return if you are eligible and have elected to:
- Report GST and either pay the amount you owe or receive a refund annually, or
- Pay quarterly GST amounts and report your GST information annually.
Each year, by July 31st, you have to assess whether or not your business is still eligible for to report annual GST returns. You are no longer eligible if:
- Your projected GST turnover is more than the registration turnover threshold, that is:
- $75,000 for small businesses (and all other entities except non-profit organisations)
- $150,000 for non-profit organisations
- Yours business is required to register for GST returns regardless of GST turnover (e.g. taxi drivers)
If you need help lodging your annual GST return, or want to find out if you are eligible to report annually, our experienced accountants can help. Get in touch with The Quinn Group using our online contact form or by calling 02 9223 9166.