Reading time: 6 minutes
What is GST?

GST stands for Goods and Services Tax. It is a 10% sales tax levied by the Australian Government on certain products. This means that many businesses need to collect and pay GST to the Australian Tax Office.

Do I Need to Pay GST?

Businesses with a turnover of at least $75,000 will need to register for GST. In addition, taxi travel, ride-sourcing services and non-profit organisations with a turnover of at least $150,000 also need to pay GST. If you fall into one of these categories, you will likely need to pay GFC.

Can I Pass the Cost of GST On To My Customers?

Yes, in fact, most businesses do! You should include GST in the price that you charge for your goods. This allows you to collect the cost of GST from your customers rather than absorbing the cost yourself.

What is an Example of GST?

GST applies to almost all goods and services. For example, if you sell laptops, you will likely charge 10% of the product price in tax. The money you collect in tax will then be paid to the Australian Tax Office.

Are My Sales Taxable (GST-Free or Input-Taxed)?

Not all goods and services are taxable. Some items are GST-free, including basic foods, some education courses and healthcare products. Other goods and services are input-taxed, meaning that the price does not include GST. For example, the lending and borrowing of money and the rental of residential premises.

How Do I Pay GST?

You must first register through the Australian Tax Office Business Portal and work out whether your sales are taxable. At the end of each business quarter, you will need to report the amount you have collected from consumers as GST and pay this amount to the ATO.

Webinars

Raising Capital: Getting Investment Ready

Tuesday 6 April | 12:00 - 12:45pm

Online
Are you a founder or business owner looking to raise capital? Attend this webinar to learn the strategies to prepare your business for investment.
Register Now

The COVID-19 Vaccine Rollout: Considerations for Employers

Thursday 22 April | 11:00 - 11:45am

Online
Are you a business owner or employer? Attend this webinar to learn about what you need to know about the COVID-19 vaccine rollout.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer