The Goods and Services Tax (GST) stands as a cornerstone of Australia’s taxation system, yet many business owners struggle to understand their obligations. Whether you’re a creative professional in Western Sydney or managing a small business anywhere in Australia, mastering GST is essential for your financial compliance and success.
GST remains at 10% of the sale price in Australia, unchanged since its implementation in 2000. Here’s a clear breakdown:
| Price Component | Amount |
|---|---|
| Base Price | $100 |
| GST (10%) | $10 |
| Total Price | $110 |
Important: You must register within 21 days of reaching these thresholds.
Your GST turnover calculation involves:
Annual gross income
- GST included in sales
- International sales
- Input-taxed sales
- Non-payment business associate sales
= GST turnover
Most goods and services fall under taxable sales requiring 10% GST.
Base fee: $1,000
GST amount: $100 (10%)
Total invoice: $1,100
Product cost: $500
GST amount: $50 (10%)
Total price: $550
Essential GST documentation includes:
As specialists in creative industry accounting, we recommend:
Understanding and managing GST is crucial for business success. Professional guidance can help ensure compliance while maximising financial efficiency, particularly as your business grows.
Monitor your 12-month turnover against the $75,000 threshold.
Yes, voluntary registration is available and may benefit businesses working with GST-registered clients.
Backdated GST payments plus potential penalties from the ATO.
Claim through BAS using valid tax invoices for business purchases.
Consumer prices must include GST; B2B prices can exclude GST if clearly stated.
Sign up to receive relevant advice for your business.