Saturday, 5 March 2016

To GST Or To Not GST?

When you start a new business there are so many new things to learn, the experience can be a little daunting.  For instance, “Do I have to register for GST?”  It’s a simple enough question and one that puckers the brow of many a new business owner.  If you are setting yourself up as a Virtual Assistant you will need to register your business name and apply for an ABN.  However, you don’t, in most circumstances, have to register for GST …at least not yet.

Put simply, GST is a tax on most goods and services sold or consumed in Australia and it is collected by registered businesses and paid to the government.

Your new VA business has two roles: to operate as a business and to collect GST for the government.

However, if your turnover will be less than $75,000 in a 12 month period, registering for GST is optional.  If you are new to running your own business, you already have a lot to get your head around and not having to think about GST and the administrative work associated with tracking and reporting GST can be a relief.  You have plenty of time to settle into being a new business before worrying about understanding GST and BAS (Business Activity Statement) reporting.

Realistically, it is unlikely that your fledgling business will hit the GST threshold in your very first year, especially if you are starting your business part time.  If you haven't registered for GST, and you become aware that your GST turnover will exceed the $75 000 per year threshold, (break out the champagne!) and realise, all is not lost, you have 21 days to register.

As with all things financial, always speak to your accountant to make sure you are taking the right path for your particular circumstances.

The Exceptional Assistant


Interested in working as a VA or just started your VA business?  Check out these VA workshops:

Saturday 9th April

Saturday 21st May

Saturday 18th June

Contact for more details.

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