Goods and services tax (GST) is a broad-based tax of 10% on most goods and services sold or consumed in Australia. Basically, registered entities bear the liability to collect and record GST, in return these entities are entitled to input tax credit. This credit can offset the GST liability derived from the sales to their customers. The actual economic burden of the GST rests on the end consumer.
Businesses and individuals with annual turnover more than $75,000 ($150,000 for non-profit organisations) are required to register for GST. It is still possible for entities with less than$75,000 turn over to register GST.
The general reporting options for GST is quarterly basis or monthly basis. This is based on the annual turnover of the entity, for entities with turnover less than $20 million, GST can be reported quarterly. Entities with more than $20 million turnover are required by ATO to report monthly. GST is lodged through business activity statement. In some circumstances, small entities can choose to report and pay GST annually provided that all requirements from ATO are met.
