One of the concerns that the new business owner must address in their startup Business-Plan is whether or not to sign up for GST. That is one among the choices you will have to create when starting a business in Australia.
This issue should not be confused with applying for an ABN Number. Though you can operate your organization without an ABN, there are a few implications for not registering.
Step 1 – The application process to sign up to GST can be done online on the Australian Business Register Website. This web site will also provide you with information for not registering for an ABN, about what the results are.
Step2 – Determine if you should be registered for GST.
If you decide to not register as your expected income is below the $75,000 threshold, you’ll still have to observe your organisation income and register as soon as you imagine that the money probably will go over the threshold.
You will must forward any GST collected on your business revenue to the ATO if you register for GST, but you could claim any GST paid on business purchases back. It’s the online quantity of GST (GST Collected – GST Paid) that you forward to the ATO once you lodge your BAS. To help you claim the GST on your company setup fees back, it might be worth registering for GST from the beginning up level of your organisation.
Many micro business owners are discouraged from registering for GST due to the compliance issues require. They could be troubled from the fact they have to keep their business documents current so they may settle the quarterly BAS. I really look at this like a positive! If your bookkeeping is updated you can monitor your company’ progress and make sure your new business is growing.
It’s also worthwhile considering your organisation will be viewed by your organisation partners if you should be not authorised for GST. If you should be not documented for GST you are all promoting the fact your business is a little fish in a huge pool, your business partners may know that your return is below $75,000 per annum.