Biz Articles
The low-down on GST - to register or not?
Author: Youth 2 Youth.
When you start your business you will have to apply for an ABN number from the Australian Taxation Office.
One of the questions you must answer is whether you want your business to be registered for GST. As your business will most probably not make the threshold of $50000 for a while, you do not have to automatically register for GST.
You need to decide on your own start up circumstances what is going to be the best option for your business.
Yes, a company can trade under more than one name. You still have one ACN/ABN. It's a good idea to register both business names and their associated intellectual property.
For more info contact us here at Youth 2 Youth or check with the trading department in your state.
To register: if you do decide to register for GST you will be able to claim for your input tax credits. What does that mean? It means that you get back the GST that you have paid on all the capital equipment etc. BUT it also means that you have to submit a BAS each quarter in order to receive that GST money back again. This means keeping good records right from the beginning.
To not register: if you decide to not register for the GST from the beginning, you do not have to submit a BAS on a quarterly basis. All you have to do is an end of year financial record, submitted to the ATO. However it also means that you can not claim back any of the GST that you have paid on goods and services.
For more info on tax check out www.ato.gov.au OR www.bep.gov.au OR ask your accountant. Still totally lost? Ask us here at Youth 2 Youth and we can advise you!