Running a small business in Australia means wearing a lot of hats—and one of them is handling GST. Whether you’re just starting out or you’ve been operating for a while, understanding GST (Goods and Services Tax) is essential for staying compliant and making informed financial decisions.
In this guide, I’ll walk you through what GST is, when you need to register, how to manage it, and where you can find support—especially if you’re doing your own bookkeeping.
What is GST?
GST is a 10% tax applied to most goods and services sold or consumed in Australia. Some things don’t have GST included, and these are called ‘GST-free sales’.
As a business, if you’re registered for GST, you’re required to:
- Add GST to the price of your taxable sales
- Pay GST on purchases you use for your business
- Report and pay GST to the ATO, usually quarterly via a Business Activity Statement (BAS)
When Do You Need to Register for GST?
You must register for GST if:
- Your established business has a GST turnover of $75,000 or more per year (or $150,000 for non-profits) – this is called the ‘GST threshold’
- You start a new business and expect your turnover to reach the GST threshold in the first year of operation
- You provide taxi or ride-sourcing services
- You want to claim fuel tax credits
You can also choose to register voluntarily before reaching the threshold, which can help you claim GST credits on business expenses.
How Do You Manage GST?
Once you’re registered for GST, here’s what you need to do:
- Charge GST on your invoices of taxable sales (usually 10%)
- Keep detailed records of all your income and expenses
- Lodge your BAS regularly (monthly, quarterly, or annually)
- Pay the net GST amount to the ATO (GST collected minus GST paid)
This might sound daunting, but it becomes much easier when you stay on top of your bookkeeping.
Common GST Mistakes to Avoid
- Not registering when required
- Forgetting to include GST on invoices
- Claiming GST credits for expenses that aren’t GST-inclusive
- Missing BAS deadlines
A good bookkeeping system (or a friendly bookkeeper!) can help you avoid these common pitfalls.
Need Help with GST and Bookkeeping?
If you’re a DIY bookkeeper for your business, it’s easy to feel overwhelmed—but you don’t have to do it alone.
My Boss of Your Books + GST membership is made just for small business owners like you. It includes:
- A monthly virtual co-working session on Zoom to get your bookkeeping done—with me right there to answer questions
- Access to helpful resources and tips
- Ongoing support to stay on top of your numbers (and GST!)
It’s a low-cost, high-value way to feel confident in your bookkeeping and know you’re getting things right.
Final Thoughts
GST doesn’t have to be scary. With a little guidance and a good routine, you can handle it like a pro. And if you ever get stuck, Boss of Your Books is here to help.
Want to join the next co-working session?
