Hi,
Would a sole trader Mortgage Broker who earns less than $75,000 need to register to GST? Commissions paid by banks to brokers do include GST (hence it is being received by the broker), however they hasn't actually reach the income threshold required for registration. Can anyone clarify?
Thanks!
Hiya @FinanceSarah,
If an entity is collecting GST it has to be registered. The GST portion of the payment being received is intended to be passed on to the ATO. The sole trader would need to back date a GST registration to the first time they were paid GST and forward on all of the amounts collected to the ATO. Alternatively, it can be paid back to the banks, and no longer collected. As the sole trader should not be collecting GST in the first place.
In short, they don't have to register, but if they don't they need to pay the GST back to the banks that paid it to them in the first place.
Hiya @FinanceSarah,
If an entity is collecting GST it has to be registered. The GST portion of the payment being received is intended to be passed on to the ATO. The sole trader would need to back date a GST registration to the first time they were paid GST and forward on all of the amounts collected to the ATO. Alternatively, it can be paid back to the banks, and no longer collected. As the sole trader should not be collecting GST in the first place.
In short, they don't have to register, but if they don't they need to pay the GST back to the banks that paid it to them in the first place.
5 Nov 2025 · 6 min read time
22 Apr 2024 · 3 min read time
22 Apr 2024 · 6 min read time
2,081 views
1 replies