Monthly Archives: November 2019
The end of the year is fast approaching. So amongst your festivity planning, make sure you maximise your health insurance entitlements.
Health funds re-set their limits for extras come January. If you have an unused cap for things such as dental, physios and the like, you may wish to use up your health insurance entitlements before they are lost.
Seeing the physio might be a good move if, like me, you seem to be carrying and lifting a lot of heavy things over the next 30 days!
Don’t forget to register for GST! If you don’t it could be costly.
The GST registration threshold for businesses that are not non-profits and taxis is $75,000. If your annual turnover exceeds $75,000 and you are not registered, then the ATO will demand you pay them 1/11th of your turnover.
It can prove rather costly!
Where turnover is not seasonal, we recommend that clients register once their turnover exceeds $6,000 per month. And sometimes earlier if they will soon be at the limit and have good accounting processes (which we can help set up).
Not sure what is best for you – call us for a free discussion.
Am I required to register for GST is a question we often get. The answer is that it depends.
If you operate a business, you are required to have an Australian Business Number (ABN). But this doesn’t mean you have to also register for GST.
Whether you have register depends on your turnover (sales/fees, etc). You must register your for GST if your annual turnover exceeds $75,000 ($150,000 for non-profit organisations; taxi drivers are required to register for GST irrespective of their turnover).
Sounds clear cut – not really!
Annual turnover is defined as being for the current month and the next 11. That’s right, you are expected to be a clairvoyant! That said, one should register once their monthly turnover starts exceeding $6,000 per month – with separate consideration for seasonal business.
Should I register if my turnover is under $75,000?
Well that depends on a number of considerations such as:-
Do I want to look bigger to my customers?
Are my customers the public or businesses? If they are the public, then your price goes up by 10% (but you get to claim back any GST paid). If they are the business, then they can claim back any GST claimed.
If you supply a GST free service such as food and medical supplies, then you won’t charge GST but you will get o claim back GST.
Am I going to be able to efficiently run a proper accounting file in order to track and report GST?
So what is best for you? We would be happy to discuss your situation – please call us.