In Australia, this is value added tax of 10% levied on most goods and services. Most transactions that go through a production process have to part with GST. The GST was also tailored to do away with several other government taxes such as stamp duty.In Australia, GST is based on a certain threshold for a business to be eligible. All businesses that make above $75000 per financial year are obliged to pay GST as required by the law. Businesses that record lower turnover than that minimum $75000 threshold are not obliged to pay.
Customers are charged GST by a GST registered entity on taxable services and goods provided by the firm or business. To fully comply with the tax system, a registered business must file BAS or Business Activity Statements which can be done monthly, quarterly or annually. While doing BAS lodgment, the GST registered firm must also pay the net tax owed to the tax office to fully comply.
Most BAS lodgment is done by agents who have been registered to undertake this type of work. The BAS lodgment program was also released to show the specific dates and timelines when the agents are meant to file GST on behalf of their clients.
Some goods and services have been exempted from GST. These include wages, salaries, fresh foods, and also real estate. Other services and goods that have been exempted from GST include financial services and rental income. However, in this category although they make a sale, the GST levied on such business cannot be taken as input tax credit.
Are you looking for a simple solution to managing your business GST requirements, and BAS lodgements? Contact us for an obligation free quote on having use take the stress out of lodging your GST forms on your behalf.