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GST registration for sole trader in the care sector, turnover above $75,000

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I'm new

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Hi everyone, 

Wondering if you can help me work out a problem around GST registration for a sole trader in the health sector please.

 

This year I have used my ABN to bill the NDIS for work in disability support. I got the job privately, not through an agent, so I'm operating as a sole trader and have already grossed over $75,000 for the financial year. GST does not apply here, because it is care work, paid by the government, but I realise I am going over the limit for turnover.

I've logged into the business portal, and first of all I cannot find where to register for GST within the portal, and secondly i'm having second thoughts about whether it is necessary. 

Can anyone point me in the right direction please? Thanks in advance.

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Best answer

Devotee

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Hi @Lene ,

 

You must register for GST when your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more.

<...>

our GST turnover is your total business income (not your profit), minus any:

  • GST included in sales to your customers
  • sales that aren't for payment and aren't taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia.

<...>

Source

 

A supply to a NDIS participant is GST-free if all the requirements are met. 

 

Hence, GST-free sales (it is different to input-taxed sales!!!) are NOT excluded from GST turnover threshold calculation.You have to register for GST if your turnover exceeds $75000.

 

To register for GST through Business Portal, follow these instructions.

 

 

 

BIG HINT to you from me:

You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales. Source

You can apply to backdate your GST registration. For tax periods commencing on or after 1 July 2012, backdating a GST registration is limited to four years.  Source

It means you can claim GST back on all GST-includive purchases you made for your business. Litterally it means you receive 10% discount on any purchases related to your business. 

 

I hope it will help Smiley Wink

--------------------------------------------
“We can not build our own future without helping others build theirs.” Smiley Wink
1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

Hi @Lene ,

 

You must register for GST when your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more.

<...>

our GST turnover is your total business income (not your profit), minus any:

  • GST included in sales to your customers
  • sales that aren't for payment and aren't taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia.

<...>

Source

 

A supply to a NDIS participant is GST-free if all the requirements are met. 

 

Hence, GST-free sales (it is different to input-taxed sales!!!) are NOT excluded from GST turnover threshold calculation.You have to register for GST if your turnover exceeds $75000.

 

To register for GST through Business Portal, follow these instructions.

 

 

 

BIG HINT to you from me:

You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales. Source

You can apply to backdate your GST registration. For tax periods commencing on or after 1 July 2012, backdating a GST registration is limited to four years.  Source

It means you can claim GST back on all GST-includive purchases you made for your business. Litterally it means you receive 10% discount on any purchases related to your business. 

 

I hope it will help Smiley Wink

--------------------------------------------
“We can not build our own future without helping others build theirs.” Smiley Wink