Australia VAT/GST guide
Australia GST guide for businesses
Value Added Tax (VAT), known as Goods and Services Tax (GST) in Australia, was implemented in 2000, and it is applicable for the supply of most goods, services, real estate property and intangibles.
The responsible authority for GST is the Australian Taxation Office (ATO).
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What is the standard GST rate in Australia?
10%
Certain suppliers can be GST-free, such as some types of food, most medical services, education, childcare, precious metals, international mail, water and sewerage utilities.
Requirement to register for GST
The threshold for GST registration in Australia is AU$75,000 for businesses or enterprises, and AU$150,000 for non-profit organisations. However, if a business provides taxi or limousine travel for passengers, it must register for GST regardless of the turnover.
Resident Entities: To be able to register, the resident business entities need to have an ABN (Australian business number). With this, registration is possible online, by phone, through registered tax agent or BAS agent or by completing form NAT 2954.
Non-Resident Entities: Non-resident entities that make supplies connected to Australia have to register for GST. Non-resident entities that make no supplies connected in Australia but incur GST on business use purchases may register to claim GST refund.
GST filing frequency
If the GST turnover of a business is AU$20 million or more, the filing frequency is usually monthly.
If the GST turnover is less than AU$20 million – and the ATO has not advised that the business must report monthly – the filing frequency is quarterly.
If the business is under the registration threshold (GST turnover is under AU$75,000 or AU$150,000 for not-for-profit bodies) and voluntarily registered for GST, the filing frequency can be annually.
Invoicing requirements in Australia
An invoice must contain the following particulars:
- The supplier’s identity and ABN
- If the total price of the relevant supply is over AU$1,000, the recipient’s identity or ABN
- A brief description of what is being supplied including quantity and price
- The extent to which each supply is a taxable supply
- The date the document was issued
- The amount of GST due in relation to each supplys.
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Return types
There are 3 main return types in Australia:
- Simpler Business Activity Statement (BAS): for small businesses with a GST turnover less than AU$10 million
- Full Reporting Method: for businesses with GST turnover more than AU$10 million
- Simplified GST: for non-residents who sell online services and digital products to Australia and where the goods are valued at AU$1,000 or less
Deadlines and submission
The submission and payment deadline for monthly GST returns is the 21st of following month after the period end, while for quarterly GST returns, it is the 28th of the following month.
The submission and payment deadline for annual GST returns is either the date for lodgement of the income tax return, or 28 February following the annual tax period, if the business is not required to lodge an income tax return.
The submission of the returns should be online, or in some exceptional cases, by paper form, preferably in the pre-addressed envelope received from ATO.
Agents and fiscal representatives
If a non-resident principal has an agent acting on its behalf, the agent may be accounting for the GST liability of the non-resident principal.
BAS agents can act on behalf of the business in GST and BAS related fields in Australia.
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