The goods and services tax(GST) in Australia is a value added tax of 10% on most goods and services sales. GST is levied on most transactions in the production process, but is refunded to all parties in the chain of production other than the final consumer.
The tax was introduced by the Howard Government and commenced on 1 July 2000, replacing the previous federal wholesale sales tax system.
As a business owner, it's your responsibility to register for GST if your turnover exceeds the $75,000 threshold or is likely to exceed it. The ATO advises that if you've just started a new business and expect it to earn $75,000 or more in its first year of operation, you should register for GST. Your accounting professionals at HPW Accountants can not only advise clients on whether to register for GST, but complete the registration and then assist to set up your book-keeping system to capture GST complaint transactions.
The business activity statement (BAS) is a tax reporting requirement for businesses issued by the ATO on either a monthly or quarterly basis. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.
BAS reporting can be a complex process and is best undertaken by a registered tax agent or BAS agent, such as HPW Accountants. BAS payments are required on specified dates through the year and we work with you to ensure compliance. Our processes warrant that the complete process of GST collection and payment, BAS lodgement, cash flow, profitability and reporting are seamlessly integrated.