Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
If you are a business, you use a BAS to:
- Report and pay the GST your business has collected
- Claim GST credits
How GST Works
Generally, businesses and other organisations registered for GST will:
- Include GST in the price they charge for their goods and services
- Claim credits for the GST included in the price of goods and services they buy for their business.
What you need to do for GST
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel – you need to:
- Register for GST
- Work out whether your sales are taxable (that is, subject to GST, and not exempted because they are GST-free or input-taxed) and include GST in the price of your taxable sales
- Issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
- Claim GST credits for GST included in the price of your business purchases
- Account for GST on either a cash or non-cash basis and put aside the GST you collected so you can pay it to us when due
- Lodge activity statements or annual returns to report your sales and purchases, and pay GST to us or receive a GST refund.