Guidance Strategy

1. GST Registration Strategy

• ✅ Mandatory Registration Thresholds:
  • $75,000 turnover for businesses
  • $150,000 for NFPs
  • Immediate registration for taxi/ride-sourcing services
• 📌 Optional Registration:
  • Voluntary registration allowed but must remain registered for 12 months minimum
• 🕒 Backdating:
  • Can backdate up to 4 years (unless fraud/evasion involved)

2. GST Classification of Sales

• 💡 Taxable Sales:
  • Must be for payment, in the course of business, and connected with Australia
  • Includes barter, non-monetary consideration, and capital assets
• 🚫 GST-Free Sales:
  • Basic food, education, medical services, exports, NFP activities, and some car-related concessions
• 🧾 Input-Taxed Sales:
  • Financial supplies (e.g. loans, credit)
  • Residential rent/sales (unless new or commercial)
  • No GST charged, no credits claimable

3. Tax Invoices & Documentation

• 📄 Invoice Requirements:
  • <$1,000: 7 key details (ABN, GST amount, etc.)
  • ≥$1,000: Must include buyer identity or ABN
• 🔄 Recipient-created tax invoices (RCTIs):
  • Allowed if both parties are GST-registered and agreement is in place
• 🔍 Rounding Rules:
  • Apply total invoice or taxable supply rule for GST fractions

4. Claiming GST Credits

• ✅ Eligibility:
  • GST must be included in purchase price
  • Must be for business use (not input-taxed or private)
  • Valid tax invoice required for purchases (if >$82.50)
• ⏳ Time Limits:
  • Credits must be claimed within 4 years of the relevant BAS lodgment due date
• ⚠️ Common Disqualifiers:
  • Wages, purchases from non-GST registered suppliers, margin scheme property, entertainment expenses

5. Special Cases & Exceptions

• 🏗️Pre-Establishment Costs:
  • GST credits claimable if company reimburses and meets 7 criteria
• 🛠️ Second-Hand Goods:
  • GST credits claimable even if supplier isn’t registered, if goods are for resale
• 🧾 Grants & Sponsorships:
  • GST applies if a benefit is provided in return (e.g. signage, advertising)
• 🛡️ Insurance Settlements:
  • No GST payable if insurer is informed of business-use proportion before claim

6. Accounting & Reporting

• 💰 Accounting Methods:
  • Cash vs. accrual basis affects timing of GST credit claims
• 📆 Activity Statements:
  • Lodge BAS or annual GST return to report and pay GST or claim credits
• 📊 Software Use:
  • Recommended for tracking GST turnover and simplifying reporting

Get Exclusive Content

Fill in the form below to create your Subscriber account to Allied Business Bookkeeping’s WordPress account and get a GST Planning Checklist for SMEs & NFPs. Which covers:

• 📌 GST Registration
• 💰 Charging GST
• 🧾 Tax Invoices
• 📥 Claiming GST Credits
• 🛠️ Special Credit Rules; and
• 📊 Accounting & Reporting

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