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IOTS(Newbie)Newbie
18 Dec 2022

I am set up as a sole trader providing allied health services to NDIS participants. The bulk of my work is for my own business and all of it is GST free. I earn over $75k. My first question is- do I need to be registered for GST, even though I do not need to charge GST? My Accountant says no. I realise that if I registered for GST I could then claim GST on my purchases but I'm not fussed about that (I'd rather not have to worry about doing a BAS!)


I also do a little bit of subcontracting to another business but earn under $75k from this part of my work. Do I need to charge the business I subcontract to GST given my earnings from them are under the threshold? Or, due to my overall turnover being over the threshold, do I need to charge them GST?


If it comes down to it, I'm ready to ditch the subcontracting if it saves me the hassle of registering for GST.

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4,502 views
1 replies

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Most helpful reply

AlliATO(Community Support)Community Support
19 Dec 2022

Hi @IOTS


Yes, you would need to register for GST as you earn over $75,000 but when you’re doing the BAS you may find most of the income is GST-Free. 

 

Your accountant may be confusing GST-free with input taxed sales, all though they both the same in the sense they don’t have GST applied they are also different.


GST-free are sales that can be offset with the GST on purchases involved in producing the goods or service sold, with Input taxed sales you’re not able to offset/claim with the GST paid on the input tax factors

 

Keep in mind when dealing with NDIS participants your service is only GST-free if the supply is covered in the participants plan, if it’s not in the plan then GST will apply.

 

On our website there is a great section on National Disability Insurance Scheme and what is GST-free NDIS supplies, I highly recommend anyone working under NDIS to check it out.   

All replies

Most helpful reply

AlliATO(Community Support)Community Support
19 Dec 2022

Hi @IOTS


Yes, you would need to register for GST as you earn over $75,000 but when you’re doing the BAS you may find most of the income is GST-Free. 

 

Your accountant may be confusing GST-free with input taxed sales, all though they both the same in the sense they don’t have GST applied they are also different.


GST-free are sales that can be offset with the GST on purchases involved in producing the goods or service sold, with Input taxed sales you’re not able to offset/claim with the GST paid on the input tax factors

 

Keep in mind when dealing with NDIS participants your service is only GST-free if the supply is covered in the participants plan, if it’s not in the plan then GST will apply.

 

On our website there is a great section on National Disability Insurance Scheme and what is GST-free NDIS supplies, I highly recommend anyone working under NDIS to check it out.   

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Do I have to register for GST if my services are GST-free? | ATO Community