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Re: GST Registration obligation where turnover increased with Govt Jobkeeper support payments

Initiate

Views 359

Replies 2

Good Afternoon everyone. 

 

I have questions regarding meeting GST obligation in the following scenarios. 

 

scenario one :

a small business have annual total sales turnover of $70,000 for FY2020 , and business has affected due to Covid-19 , business has received Jobkeeper payment of $9000 and Cash Flow boost  $10,000 . 

Business is currently not registered for GST . Does business need to register for GST backdating to April 2020 this is when they started getting cash flow boost and Jobkeeper payment ?  

which has now increased total business income over $75000  ( $70,000 + 9,000 + 10,000 )

 

Scenario Two : 

where business sales turnover went little over $75000 after 15th June 2020, thats Last Quarter of Financial Year ,and business only realised after financial year already ended. 

 

does business need to register for GST backdating to 15th June or 1st April 2020 (Starting date of quarter ) 

if lets say 1st April , do they have to pay GST on its sales from 15th June or from 1st April when lodging quarterly GST statement. 

Business has not charged customers for GST in its sales at all. 

 

and I am curious if anyone could recommend  links for further reading about GST and similar scenarios. 

 

sorry if my questions are bit complicated, 

and Thank you so much in advance , and I really appreciate your time and help . 

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

Hiya @Vand489,

 

Thanks for breaking down your questions for us! It makes it really easy to get you some answers. I'll respond in the same format to keep it clear.

 

Scenario One:

 

In this instance, a GST registration isn't required, because JobKeeper and Cash Flow Boost are considered payments for no supply, and aren't part of your GST turnover.

 

Scenario Two:

 

It's a little more complicated than that. If your current GST turnover hits $75,000 you may be required to register. However, if your projected turnover is still under $75,000 you don't.

 

 

This information is all available on our page regarding registering for GST. I would recommend reading through the majority of our pages on GST to familiarise yourself with the system.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hiya @Vand489,

 

Thanks for breaking down your questions for us! It makes it really easy to get you some answers. I'll respond in the same format to keep it clear.

 

Scenario One:

 

In this instance, a GST registration isn't required, because JobKeeper and Cash Flow Boost are considered payments for no supply, and aren't part of your GST turnover.

 

Scenario Two:

 

It's a little more complicated than that. If your current GST turnover hits $75,000 you may be required to register. However, if your projected turnover is still under $75,000 you don't.

 

 

This information is all available on our page regarding registering for GST. I would recommend reading through the majority of our pages on GST to familiarise yourself with the system.

Initiate

Replies 0

Hi StepATO,

 

Thank you so much for your response and providing related link to the topic. 

 

and clearifying that JB and CFB is not a business sales and doenst affect turnover for meeting GST obligation. 

 

and for second scenario , I have gone throught the links provided but i guess this scenario is bit complicated to find the accurate answer.

 

 

Thank You so much for your time. really appreciate it.