Understanding GST in Australia 

Goods and Services Tax (GST) is a broad-based tax of 10% applied to most goods, services, and other items sold or consumed within Australia. Under Australia’s GST framework, the tax is ultimately borne by the final consumer, while registered businesses act as tax collectors for the Australian Taxation Office (ATO).

Registered entities include GST in the sale price of taxable supplies and can generally claim input tax credits for GST paid on business-related purchases.

Who Must Register for GST?

You must register for GST if:

  • Your business or enterprise has a GST turnover of $75,000 or more per annum

  • You operate a non-profit organisation with a turnover of $150,000 or more

  • You provide taxi travel or ride-sourcing services (regardless of turnover)

  • You want to claim fuel tax credits

You may voluntarily register for GST if your turnover is below the relevant threshold, which can be beneficial for certain businesses wanting to claim input tax credits.

Special Registrations

  • Entities with multiple divisions may apply to register each branch separately for GST purposes

  • Related entities may form a GST group, allowing them to lodge a single Business Activity Statement (BAS) for the group

Charging GST on Sales

Registered businesses must charge GST on most taxable supplies of goods and services. However, there are important exceptions, including:

  • GST-free supplies – such as most basic food, medical services, and exports

  • Input-taxed supplies – such as residential rent and financial services (GST is not charged, and input credits are not claimable)

Businesses are required to issue a valid tax invoice for all taxable sales over $82.50 (GST inclusive).

Claiming GST Credits (Input Tax Credits)

Businesses registered for GST can claim a credit for GST paid on business-related purchases and expenses. However, credits cannot be claimed for:

  • Items that are GST-free (no GST was charged)

  • Purchases used to make input-taxed sales (e.g., financial services, residential rent)

  • Expenses that are partly or wholly for private use

To claim input tax credits, you must have a valid tax invoice for purchases over $82.50, and retain adequate records for five years.

Industry-Specific and Special Rules

Certain industries — such as real estate, financial services, education, and non-profit sectors — are subject to special GST rules. These may affect how GST is charged, credited, and reported. There are also special provisions for transactions like barter arrangements, mixed supplies, margin schemes, and instalment sales.

We can guide you through the industry-specific rules that apply to your business.

GST Reporting & Payment Obligations

GST is reported and paid through your Business Activity Statement (BAS) for each tax period, which may be:

  • Quarterly – the default for businesses with turnover under $20 million

  • Monthly – mandatory for businesses with turnover over $20 million, or by election

  • Annually – available for voluntarily registered entities or small businesses under certain conditions

Accounting Methods

GST can be reported using either:

Cash Basis Accounting

GST is reported in the tax period when cash is received or paid. This method is available if:

  • You are a small business entity (turnover under $10 million)

  • You account for income tax on a cash basis

  • You operate a charity, government school, or gift-deductible entity

Accrual (Non-Cash) Basis

GST is reported in the tax period when invoices are issued or received, regardless of payment timing. This is the default method for larger businesses.

How We Can Help

At Complete Tax & Financial Services, we offer expert guidance on:

  • GST registration and obligations

  • Preparing and lodging BAS statements

  • Applying industry-specific GST rules

  • Managing input tax credits and compliance

  • GST advice for mergers, sales, or restructures

  • Transitioning between accounting methods

Whether you're starting a business, expanding interstate, or facing a complex GST issue, our experienced team ensures you're compliant and tax-efficient every step of the way.

📞 Contact us today for tailored GST advice and support.

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