Are you eligible to report your GST only once a year?
Not every business has to report GST monthly or quarterly. Eligible clients are able to lodge their GST report once a year. For your information, the key points are as follows.
Who can report GST annually?
You can elect to report GST annually if:
- you are not required to register for GST, and
- you have not elected to pay GST by instalment amounts as advised by ATO
You are not required to register for GST if your projected GST turnover, calculated at the time you make your election, is less than the registration turnover threshold, that is:
- $75,000 for businesses and other entities except for non-profit organisations, or
- $150,000 for non-profit organisations.
How do I elect to report GST annually?
If you are eligible, you can elect to report GST annually by:
- phoning the ATO business direct self help service on 13 72 26 and pressing 1 for lodgment, then 2 to elect GST annual reporting
- phoning ATO business info line on 13 28 66, or
- writing to ATO at PO Box 9935 in your capital city.
If you choose to elect GST annual reporting over the phone, ensure you have your ABN and either your tax file number or activity statement document ID number as you will need to provide this information.
If you choose to elect GST annual reporting in writing, ensure your application is signed and contains your business’s name, ABN, a brief reason for your request and the date from which you would like your election to take effect.
When must I make my election?
You can elect in any financial year:
- from 1 July to 21 August if you report GST monthly, or
- from 1 July to 28 October if you report GST quarterly.
If, however, you have been registered for GST for six months or less or you only became eligible for annual reporting after 28 October in the relevant financial year, you must make your election on or before the first day after becoming eligible for annual reporting that you are required to lodge a GST return. Requests after the dates mentioned above will only be approved in exceptional circumstances.
When do I have to lodge my annual GST return?
The ATO will send you an annual GST return in July. The return will be for the period from the date your election takes effect to 30 June in your first year of annual reporting. Thereafter your annual GST return will relate to the period 1 July to 30 June.
You must report and pay your GST, wine equalization tax (WET) and/or luxury car tax (LCT) amounts (if applicable) for this tax period when you lodge your annual GST return.
The due date for lodgment of your annual GST return and payment of any amounts is either:
- the due date for lodgment of your income tax return, or
- 28 February, following the end of the annual tax period, if you are not required to lodge an income tax return.
If you are unsure whether you may be eligible to report GST annual reporting or if you have any other tax related queries, the tax and accounting experts at The Quinn Group are available to provide specialist advice for your individual. Contact us on 1300 QUINNS or click here to submit an online enquiry form.