If you are operating a business as a sole trader and have a GST turnover of $75,000 or more, you are required to register for GST. Registering for GST is optional if your business or enterprise does not meet this requirement.
If you choose not to register for GST, you must check monthly to see whether you’ve reached the threshold, or are likely to exceed it. If your turnover exceeds the relevant threshold, you must register within 21 days of reaching it.
Should you be required to, or voluntarily register your business for GST, generally you will include GST at 10% on invoices issued.
However, some care services in the home may be GST Free. You should seek your own advice regarding which care services you provide attract GST and which are GST-free.
You will need to lodge a business activity statement (BAS) with the ATO either monthly, quarterly or annually depending on your circumstance and registration requirements. You can claim credits for GST included in the price of goods and services purchased in relation to operating your business. You’ll need to pay any GST you owe to the ATO as soon as you’ve lodged your BAS.
GST can be complicated and there are ongoing reporting requirements, so we recommend you speak to an accountant, tax advisor or BAS agent regarding your GST obligations.
Mable gives you strong foundations to manage your business, including free access to the Mable Tax Benefits Program, with support and resources available from award-winning tax and accounting firm YOUtax.