All You Need To Know About GST Registration

If you are a business owner, you need to keep a few things in mind when its to registering for GST. For instance, GST registration will not be required if:

1. business turnover drops below the compulsory threshold
2. a change in business structure
3. closing or selling business

More often than not, it will be wise to cancel your GST registration as it can save you time and effort because this involves automatically cancelling some other registrations at the same time including:

> wine equalisation tax (WET)
> fuel tax credits (FTC)
> luxury car tax (LCT)

It is also interesting to note that you need to finalise all of your tax obligations before you consider cancelling your GST registration.

GST Registration

Secure an Australian Business Number (ABN) before you proceed with GST registration. There are three ways you can register for GST: by phone, through your registered BAS agent or tax agent and online via Business Portal. Once you have successfully register for GST, you will be notified in writing on your details including the date your registration is effective.

You are required to register for GST if:

> you wish to claim fuel tax credits for your enterprise or business;
> your business or enterprise has a GST turnover of $75,000 or more
> you provide limousine or taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover-the rules apply to both owner drivers and if you rent or lease a taxi;
> your non-profit organisation has a GST turnover of $150,000 per year or more

Registration is option for business or enterprise that does not fit into any of the above categories. For business or enterprise that wish to register, it must stay registered for at least 12 months.

When do you need to register for GST?

You can either register for GST when you first register your business or at a later time. You will also need to register for GST if you have just started a new business and expect it to reach the GST turnover threshold or more during the first year of operation.

You need to check each month whether or not you have reached the threshold or exceeded it if you have not yet registered for GST. Registration must be done within 21 days if your turnover has already exceeded the relevant threshold.

You will only have to register for GST one even if you have more than one business to operate. You will be required to pay GST on the sales you have made since the date you were required to register. The payment will also include interest and penalties.

Tamara Deterding

Written by : Tamara Deterding