The Process of GST Registration for Australian Businesses

Goods and Services Tax (GST) was imposed in Australia by the Howard Government on 1st July 2000 by replacing the old Wholesale Sales Tax (WST). A 10% rate is levied on the supply of goods and services in Australia along with on imported items. The Australian Tax Office caters to the GST related technicalities and tax collection on behalf of the Australian Government. The following is the process of GST services in Australia.

GST Registration Process

For GST registration, a business requires to have an Australian Business Number (ABN) which is given to a business when it registers itself under a name. There are four ways in which a business can get registered for GST services in Australia.

1. By phone -13 28 66

2. Through the “Business Portal”

3. Through a registered tax agent or BAS agent

4. By finishing the “Add a new business account (NAT 2954) Form”

What are the Criteria for GST Registration?

1. If your business has a Gross Income Minus GST (GST turnover) of $75,000 or more, you have to get registered for GST within 21 days of exceeding the turnover.

2. For a non-profit organization, it is mandatory to get registered if GST turnover exceeds $1,50,000 per year.

Once a business completes GST registration, it has to stay registered for at least a year.  

What is the Business Activity Statement and Why is it Needed?

To claim back GST on particular goods and services, a business has to submit a Business Activity Statement (BAS) to the Australian Taxation Office. BAS is a process of journaling or lodging the monthly, quarterly, or yearly business activities if the turnover of a small business enterprise is less than $2,00,000. If the amount is more than $2,00,000, a business has to file BAS to the Australian Tax Office every month. BAS helps businesses to lodge GST, other taxes, PAYG (Pay As You Go) installments, and PAYG withholding tax.

What is PAYG?

To understand PAYG, a business has to understand two things.

1. PAYG Instalments: In this, a business has to make regular income tax installments through BAS; it eliminates the need to pay a large amount at the end of the year. The amount paid gets offset or credited based on the total tax amount at the year-end.

2. PAYG Withholding: In this, a business requires withholding certain payments made to others in the form of tax withholds. The ‘other’ payment here means, payments to employees, officeholders and directors, payments under voluntary agreements, payments to be made to workers under the labor-hire agreements, and more. PAYG withholding is also needed to be mentioned in BAS.

Best Accounting Software for GST Return Filing and Its Benefits

There are various accounting software like Xero, MYOB, QuickBooks, etc. that provide GST return filing facilities. Using these software helps businesses in the following manner.

1. Saves time

2. Cost-effective

3. Cloud-based technology

4. Automation

5. Quality services

6. Easy access

Why Choose Accounts Junction?

Accounts Junction is a leading accounting outsourcing firm providing its valuable services for more than a decade.

1. We are certified Xero and QuickBooks advisors.

2. We help you save costs as our services start just for $10/hour.

3. We have more than 250 satisfied clients, have completed more than 500 successful projects, and use more than 20 accounting software.

4. We provide many more services than GST in Australia, so we can be your one-stop destination.

To know more about us and how we can add value to your business, contact us now!