Understanding GST: A Simple Guide for Aussie Business Owners
- Leigh Glover
- Jan 15
- 3 min read
Updated: Feb 12
Understanding GST: A Simple Guide for Aussie Business Owners
Let’s be real, GST can seem a bit intimidating at first. But once you get the hang of it, it’s not as scary as it sounds. If you’re running a small business in Australia, knowing your way around GST isn’t just helpful, it’s essential. Let’s break it down in simple terms so you can stay on top of things and focus on what you do best: growing your business.
What’s GST Anyway?
GST, or Goods and Services Tax, is a 10% tax added to most goods and services sold or used in Australia. As a business owner, your job is to collect this tax from your customers and pass it on to the Australian Taxation Office (ATO).
Think of yourself as a temporary caretaker of that extra 10%. It’s not your money—it’s the government’s.
Do You Need to Register for GST?
Here’s the deal: you must register for GST if any of these apply to you:
Your business earns over $75,000 annually (or $150,000 if you’re a not-for-profit).
You’re a rideshare or taxi driver.
You want to claim fuel tax credits.
Not hitting those thresholds? You can still register voluntarily, especially if you’re paying GST on business expenses: it might save you some dollars in the long run.
Heads up: Some sales (like exports, basic foods, or medical services) might be GST-free. Not sure if your sales qualify? Check out the ATO’s handy guide.
How to Register for GST
Getting started is easy. Here’s how:
Go online to the ATO Business Portal.
Ask your tax or BAS agent to help.
Give the ATO a call.
Before you do, make sure you’ve got your Australian Business Number (ABN) sorted—it’s a must-have.
Charging GST
Once you’re registered, here’s what you do:
Add 10% GST to the price of taxable goods and services you sell.
Provide tax invoices for sales over $82.50 (including GST).
Example: If your product is $100, adding GST means your price becomes $110.
Claiming GST Credits
Good news: You can claim back the GST you’ve paid on business expenses, as long as:
The expense includes GST.
It’s directly related to running your business.
You’ve got a valid tax invoice for anything over $82.50.
Top Tips for Managing GST
Managing GST doesn’t have to be a headache. Here are some pro tips to keep things smooth:
Use Accounting Software: Tools like Xero, QuickBooks, or MYOB make GST tracking and BAS reporting a breeze.
Set Aside GST Funds: Pop the GST you collect into a separate account so it’s ready when the ATO comes knocking.
Stay Organised: Keep clear records of all sales and purchases.
Don’t Miss Deadlines: Late BAS lodgements can lead to fines. Set reminders to stay on track.
Get Expert Help: A registered BAS agent (like me!) can handle the nitty-gritty while you focus on growing your business.
Lodging Your BAS
Every quarter, you’ll need to lodge a Business Activity Statement (BAS). It’s where you:
Report how much GST you’ve collected.
List the GST credits you’re claiming.
See whether you owe the ATO or get a refund.
GST might seem overwhelming at first, but with the right knowledge and tools, it’s totally manageable. If you’ve got questions or need help with GST or BAS, I’m just a message away.
Want to dive deeper? Download my free GST guide for Aussie businesses.
