What do small businesses need to know about GST and BAS in Australia?

Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. You must register for GST if your business turnover is $75,000 or more in a 12-month period. Below that threshold, registration is voluntary, though it can be worthwhile so you can claim GST credits on your own business purchases.

Once registered, you must include GST in the prices you charge customers, collect it, and remit it to the ATO. You can claim GST credits (called input tax credits) on business purchases that include GST. The difference between GST collected and GST paid is what you remit or receive back.

You report GST through a Business Activity Statement (BAS). Most small businesses lodge a BAS quarterly; some are on monthly or annual reporting cycles depending on turnover. The BAS also covers other tax obligations like PAYG withholding if you have employees. Lodging and paying your BAS on time is important: late lodgment attracts penalties, and late payment accrues interest. You can lodge BAS through myGovID / the Business Portal or through your accountant. If you use accounting software like Xero or MYOB, it can generate your BAS figures automatically from your transactions.