Goods & Services Tax (GST) Issues

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When you have to be registered for the GST

A not-for-profit organisation must register for the GST if it has a GST turnover of $150,000 or more. The registration threshold for all other taxpayers is $75,000.

In most circumstances, a taxpayer can also claim a credit for the GST included in the price of goods and services it buys in carrying on its activities.

If a taxpayer fails to register, a part of all taxable sales of the taxpayer's business will be deemed to be the GST collected, whether or not the taxpayer did collect the GST.

Record keeping

Taxpayers are required to maintain records of their business activities which explain the taxable supplies and input tax credits.

GST reviews and audits by the ATO

The Australian Taxation Office may conduct a review or audit of your tax affairs in relation to your declared taxable supplies and input tax credits. During that review or audit:

  1. you may be requested to provide additional information and documents;

  2. you may need to consider whether you want to voluntarily disclose undeclared taxable supplies or wrongly claimed input tax credits; and

  3. the ATO may collect information from third parties including your bank, suppliers and customers.

If the ATO is not satisfied that you have correctly declared all your taxable supplies or that you are not entitled to certain input tax credits, the ATO can issue you with an amended assessment and a penalty notice. Penalties of between 25% and 95% of the shortfall tax can apply, depending on the circumstances.

Time limits are imposed on the ATO to amend GST assessments.

Objections to GST assessments

You have a right to lodge an objection against any GST assessment or amended GST assessment issued by the ATO, however, time limits apply. If you are not sure about your grounds for an objection, please contact us for assistance.

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