Five tips for Managing Your Business’s GST Obligations in Australia


Strategies for Efficiently Handling GST Responsibilities in Your Business


Businesses include the goods and services tax (GST) in their pricing, passing on the amount due to the Australian Taxation Office (ATO) to consumers within the purchase price of products or services.

Timely submission of the accumulated GST to the ATO at each deadline is crucial to avoid ATO penalties for cashflow management purposes. Implementing effective planning and saving measures is key to ensuring sufficient funds are maintained to cover GST liabilities. Explore our essential advice for GST management below.


Understanding GST Obligations

Businesses are subject to GST if their annual sales exceed $75,000.

Existing entities are required to register for GST within 21 days after surpassing this threshold, whereas new ventures should do so if they anticipate reaching this volume within their first year of operation. An Australian Business Number (ABN) is a prerequisite for registration.

Typically, businesses with annual sales between $75,000 and $20 million must file their business activity statements (BAS) and remit GST by the 28th day following each quarter’s end.

Businesses voluntarily registering for GST with earnings below the threshold may opt for annual lodgement and payment cycles, whereas those with revenues exceeding $20 million are obligated to pay monthly.


Effective GST Management Strategies

Enhance your approach to GST with these five strategies:


Accurate GST Recording

  • Ensure the GST for each transaction is recorded in your accounting system promptly and on your BAS. Employing a bookkeeper can simplify this process and mitigate the risk of penalties.

Maintain every invoice, clearly noting the GST, to prevent overpayment when filing your BAS.


Adopt Advanced Accounting Solutions

  • Utilize contemporary accounting platforms, such as Xero, for an intuitive approach to managing invoices. These systems calculate your GST obligations automatically and can alert you to tax liabilities in real-time.

Some software options offer direct ATO integration, facilitating reminders for deadlines and secure GST submissions.


Leverage GST Credits

  • Understand that GST credits, or input tax credits, can be claimed for GST paid on business-related purchases, with a claim period extending four years post-purchase.

This mechanism ensures you’re not taxed twice on business expenses. For example, purchasing stationery worth $11, including $1 GST, entitles you to a $1 credit.


Incorporate GST in Invoicing

  • With a standard 10% GST on most items in Australia, it’s vital to include this in the pricing of your goods or services.

Segregating this ‘’GST’’ income helps prepare for quarterly tax payments, avoiding the need to dip into other financial reserves.


Engage a Professional Accounting Firm

  • Consider engaging an external accountant to reduce the costs associated with an in-house team while ensuring compliance with tax regulations.

Glance Consultants provides a wide variety of accounting and taxation services, from forward planning to optimizing savings on an annual and quarterly basis. Contact us to learn how we can support your business’s financial health today.


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