What is GST and does my business need to charge it?
The Goods and Services Tax (GST) is a 10% tax on most goods and services in Australia. Perth businesses with annual GST turnover of $75,000 or more must register for GST. Non-profits have a higher threshold of $150,000. Once registered, you must add GST to your taxable sales, collect it from customers, and remit it to the ATO via your BAS.
When do I need to register for GST?
You must register when your GST turnover reaches $75,000 annually — within 21 days of crossing the threshold. Businesses below the threshold may register voluntarily, though they generally remain registered for at least 12 months. Registering early can be advantageous if you have significant GST-creditable business purchases.
How do I charge GST correctly on my invoices?
Registered businesses must add 10% GST to taxable sales and clearly display it on invoices. Not all sales attract GST — key exceptions include:
- GST-free items — fresh food, certain health and education services, exports, and some medical aids
- Input-taxed supplies — financial services, residential rent, and certain precious metals
What must a valid tax invoice include?
For sales exceeding $82.50 (including GST), you must provide a valid tax invoice on request. It must include:
- Your business name and ABN
- The words "Tax Invoice"
- Date of the invoice
- Description of goods or services supplied
- Total price and the GST amount clearly shown
How do I claim GST input tax credits?
You can claim GST credits on purchases made for business purposes, provided you hold valid tax invoices. These credits reduce the net GST you owe on your BAS. Retain all tax invoices for at least five years — the ATO may request them during a review or audit.
How do I report GST on my BAS?
Report net GST (GST collected on sales, minus GST credits on business purchases) on your Business Activity Statement. Most small businesses lodge quarterly — due by 28 October, 28 February, 28 April, and 28 July. Use our BAS Due Date Calculator to confirm your next deadline.
What are the best practices for GST compliance?
- Use cloud accounting software like Xero to track GST automatically on every transaction
- Maintain separate business and personal bank accounts
- Reconcile accounts regularly to catch classification errors early
- Consult a professional for complex scenarios (imports, digital products sold overseas, mixed-use assets)
- Engage a registered BAS agent to manage lodgements and extended deadlines
The Metier Group provides BAS agent and GST lodgement services across Perth. Contact us to ensure your GST obligations are handled correctly.