In Australia, businesses are required to charge a Goods and Services Tax (GST) at the rate of 10% on nominated goods and services that they supply to customers. The GST payable is included in the price paid by the recipient of the goods and services, and the supplier must pass this amount on to the Australian Tax Office. Not every business has to report GST monthly or quarterly. Eligible clients are able to lodge their GST report once a year.

When is due date?

The due date will be the same date your income tax return is due to be lodged. Usually this will be on 31 October, however if your returns are lodged by a tax agent, this deadline is extended until 28 February. If you are not required to lodge an income tax return, the due date will also be 28 February following the end of the annual tax period.

Am I eligible to continue to report GST annually?

You must assess your eligibility to report GST annually as at 31 July each financial year. You cannot continue to report GST annually if on this date:

•  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), and

– $150,000 for non profit organisations, or

•  you are required to register for GST for some other reason.

What are the exemptions?

Some transactions are outside the scope of GST altogether because, for example, they are gifts, or made by unregistrable people, or have no connection with Australia. Others are “GST-free” which means that the supplier does not charge GST, but can claim credits for the GST on its own acquisitions. The main GST-free items are exports, health, food, education, international travel and certain charitable activities.

If you have no activity to report for the period, you are still required to complete and lodge an annual GST return.

If you are unsure whether your business is eligible to report GST annually or you need help lodging your return, the experienced tax accountants and tax agents here at The Quinn Group can assist. For this, or for any other tax related queries submit an express enquiry or call us on 1300 QUINNS (784 667) or on +61 2 9223 9166.