Top GST Questions Answered – What Every Australian Business Should Know

Whether you’re starting a new business or have been operating for years, GST (Goods and Services Tax) is one area that continues to raise questions. With ongoing changes to thresholds, reporting tools, and compliance obligations, it’s no wonder business owners often ask for clarification.

Here are the most commonly asked GST questions—and what you need to know.

❓ 1. Do I need to register for GST?

You must register for GST if:

• Your business has GST turnover of $75,000 or more per financial year

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

• You provide taxi or ride-sourcing services (e.g. Uber) — registration is mandatory regardless of income

• You want to claim fuel tax credits

💡 Tip: If you’re close to the threshold, it’s wise to track your income monthly to avoid missing the registration deadline.

❓ 2. What happens if I don’t register for GST when I should?

Failing to register on time can result in:

• Backdated GST liabilities (you may owe GST on sales made from the date you were required to register)

• Penalties and interest from the ATO

• Trouble claiming input tax credits for business expenses

❓ 3. How do I charge GST on my invoices?

Once registered, you must:

• Include GST in the price of most goods and services you sell

• State “Tax Invoice” on invoices over $82.50 (including GST)

• Clearly display:

  • Your business name and ABN

  • Invoice date and description of the goods/services

  • The GST amount or a statement that the total includes GST

❓ 4. What can I claim GST back on?

You can claim GST credits on purchases related to running your business, including:

• Office supplies and equipment

• Rent and utilities (if registered for GST)

• Marketing and advertising expenses

• Accounting software subscriptions

• Contractor invoices (if they include GST)

❗You can’t claim GST on private expenses, employee wages, or items purchased from businesses not registered for GST.

❓ 5. How often do I need to report and pay GST?

This depends on your business turnover:

Most small businesses lodge a Business Activity Statement (BAS) either monthly or quarterly.

❓ 6. What’s the difference between GST-free and input taxed sales?

• GST-free sales: You don’t charge GST, but you can still claim GST credits on related expenses. Examples: most basic foods, medical services, childcare, and some education.

• Input taxed sales: You don’t charge GST, and you can’t claim GST credits on related purchases. Examples: residential rent, financial services.

❓ 7. Can I deregister for GST if my turnover drops?

Yes. If your turnover falls below $75,000 and is expected to stay there, you can apply to cancel your GST registration. But you’ll need to:

• Finalise your last BAS

• Pay any outstanding GST owed

• Adjust for any business assets you claimed GST on (if you still hold them)

✅ Need Help With GST?

Whether you’re unsure about registration, preparing your BAS, or tracking GST on your invoices, I can help. At BEC Tax & Accounting Solutions, I work with individuals and small businesses to make GST compliance straightforward and stress-free.

📩 Get in touch at admin@bectax.com.au or book a chat to get started.

⚖️ Disclaimer

This article is general in nature and should not be relied upon as personalised advice. For GST advice tailored to your circumstances, please contact a registered tax agent or accountant.