Malvern Accountant Offers Advice About When To Register For GST
If you run a business or other enterprise in Malvern or Malvern East and your turnover is $75,000 or more you will need to register for GST (the old threshold was $50,000).
You need to register, not only if your business exceeds the threshold in a given financial year, but also if it is likely to exceed it.
If you are a taxi driver, you must register for GST regardless of your turnover.
If you are a business startup, you will need to estimate whether you turnover is likely to be over $75,000 for the year.
Reece is about to start a retail outlet in Malvern. He has estimated with his accountant that his sales in the first year will be approximately $140,000. Because Reece's projected GST turnover is greater than $75,000, he will need to register and charge GST from the commencement of his business.
You only count the turnover of your business activity. You do include GST in the turnover test of $75,000. Also, sales not connected with Australia need not be counted (although exports are counted as part of the turnover test), and capital gains on the sale of business assets are also excluded.
If you aren't registered for GST, you will need to test each month to see whether you have reached the $75,000 threshold. You reach the threshold when:
1. Your sales for the current month and previous 11 months are $75,000 or more (note that it is not tested on a financial year basis).
2. Your sales for the current month and the next 11 months are likely to be $75,000 or more.
Darren works as a retail manager on a part-time basis as an employee and earns $50,000, as well as starting up his retail outlet in Malvern which his accountant has estimated is likely to generate $40,000 in the first year. Darren has not reached the registration threshold as his business income is less than $75,000.
Hillyer Riches is a specialist accounting, business advisory and superannuation firm located in Melbourne and servicing areas such as Malvern & Camberwell. For more information email email@example.com
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.