GOODS AND SERVICES TAX (GST) - The Australian equivalent of VAT

GST is levied at 10% on the supply of goods, services or activities with only limited exceptions.

Taxpayers with an annual turnover less than $2 million may elect to calculate their GST on either a cash or accruals basis. Businesses in excess of $1 million must report on an accruals basis.

To be liable for GST or to be able to claim input tax credits, the taxpayer or organisation must be registered and to obtain an Australian Business Number (ABN). Registration is compulsory if the entity’s annual turnover is $75,000 or more.

Generally, an entity will have to account for its GST on a quarterly basis unless its turnover is $20 million or more, when it must account on a monthly basis. Filing deadlines for GST returns are usually 28 days following the end of the period.

The main types of goods, services or supplies that are GST-free are:-

• Health and medical care.
• Education and child care.
• Unprocessed food
• Exports.
• International travel.