• New Wave Accountants

Complying With Australia's Goods & Services Tax: Our Guide for Small Businesses

Regardless of whether you’re a fintech startup, food kiosk, or growing social media agency, your business has to follow your home country’s rules and regulations to succeed. That’s even more so if you’re a startup in Australia.

Australia provides one of the most fulfilling yet challenging atmospheres where entrepreneurs can find success. Even so, Australia has a fairly fearsome reputation for being challenging concerning its tax laws—especially when it complying with the Goods and Services Tax (GST).

Why you need to pay attention to and comply with the GST

With Australia’s current efforts in upholding its tax regulations for small businesses, it should come as no surprise that the GST calls for full compliance. It is an essential factor to consider when running a startup company.

The GST serves as the government’s guide on how its local economy is doing and whether or not small businesses are doing their part to comply with tax regulations. Even so, not all small companies are obliged to register for the GST.

However, if your business has high startup costs or you’re intent on building a professional trading impression, then it’s definitely ideal that you register your business for the GST.

Here’s a quick guide on how you can register your business for the GST:

Financial thresholds—when should you start paying?

One of the most critical factors of the GST that every business needs to know about is its financial thresholds for compulsory GST registration. If your company has a turnover of at least $75,000 per annum, then it is mandatory to register your business for the GST. The threshold value for compulsory registration, however, is doubled for not-for-profits.

If your business is meeting the turnover threshold, you’ll have a 21-day grace period to sign up your business. Additionally, it is also essential for small business owners to know that an Australian Business Number (ABN) is required to register your business for the GST.


Getting the GST is easy using the following formula: Price of good x 0.10 = GST. This 10 per cent will be added to the value of the product you are selling.

For example, if you have a product or service that has a value of $250, then your GST that is payable to the Australian Tax Office (ATO) is $25. Your product or service will subsequently be sold for $275.


The GST that is spent on all small business purchases, unbeknownst to most Australia-based business owners, can be claimed in the form of Input Tax Credits from the ATO. If you are eligible, then the total figure you’ll be able to claim is offset against the GST.

Final words

By complying with Australia’s standards on GST, you’ll be able to put your small business in favour of the ATO while establishing its professional trading impression at the same time. If you haven’t exactly figured out the intricacies of the Goods and Services Tax for your business and wish to leave the matter in competent and skilled hands, then get in touch with our tax accountant on the Gold Coast today. We have small business accountants that can help you out!

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