Tax tips, accounting, gst, bookkeeping, small business, nudge accounting, startups

Knowing when to register for GST is something that all startup businesses should be aware of. GST stands for Goods and Services Tax which is a consumer tax of 10% that is applied to most supplies of goods and services in Australia. You can read more about it here.

So when do you need to register for GST?

  1. You must register for GST if you are running a business and your turnover is $75,000 or more ($150,000 or more for non-profit organisations). Registration is optional if your turnover is below this threshold.
  2. Calculating ‘GST turnover’ is essentially your gross business income excluding GST for either the 12 months to the current month (current turnover) or the 12 months starting with the current month (projected turnover).
  3. So if you start a business and you have projected that you will earn more than $75,000 in the first year of operation, then you should register for GST

The ATO requires you to have an Australian business number (ABN) so your business can be part of the GST system. Often, they can be obtained as part of the same registration at the Australian Business Register.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.