Goods and Services Tax (GST)

Goods and Services Tax (GST)

Goods and services tax (GST) is a broad-based consumption tax applied to most goods and services sold or consumed in Australia. It was introduced on 1st July 2000 at a rate of 10%.

GST is collected by businesses on the sale of goods and services. Businesses that are registered for GST must add GST to the price of the goods or services they sell. The GST is then remitted to the Australian Taxation Office (ATO). This is an area where accountants can be invaluable, providing assistance with GST management services.

Individuals pay GST when they buy goods or services from businesses that are registered for GST. The GST is included in the price of the goods or services. Individuals can claim a GST refund on certain goods and services, such as education and medical expenses.

There are a number of goods and services that are GST-free, such as:

  • Basic food items
  • Education and medical expenses
  • Childcare
  • Public transport
  • Residential rent
  • Financial services
  • Insurance
  • Charitable donations

There are also a number of goods and services that are input-taxed, which means that businesses can claim a GST credit for the GST they pay on their purchases. This can help to reduce the overall cost of doing business.

GST is a major source of revenue for the Australian government. It’s estimated that GST raised $140 billion in 2020-21. GST is used to fund a range of government services, such as healthcare, education and infrastructure.

GST is a complex tax, so it’s important to seek professional advice if you’re unsure about how it applies to you or if you need assistance with GST management.

Here are some tips for understanding GST:

  • Keep track of your GST-related expenses. This will help you to calculate your GST liability and claim any refunds you’re entitled to.
  • Register for GST if your business turnover exceeds $75,000. This will ensure that you’re collecting and remitting GST correctly.
  • Make sure that you’re claiming all of the GST credits you’re entitled to. This can help to reduce your overall tax liability.
  • Seek professional advice if you’re unsure about how GST applies to your business.

At AIM S Australia, we have a dynamic team of highly qualified and committed bookkeepers and tax accountants in Melbourne who can help with GST management and other services.

We also help to prepare individual tax returns, sole trader tax returns, partnership tax returns, trust tax returns, company tax returns, crypto tax returns, expat tax returns, non-resident tax returns, overdue tax returns, foreign resident tax returns and investment property tax returns. We also offer assistance with payroll solutions, late tax filing, capital gains, company formation, business setup and BAS. Contact us today to find out how we can help you.

Leave a Comment

Your email address will not be published. Required fields are marked *