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The low down on GST and your small business

GST for small business

What you need to know

GST is one of those business responsibilities that needs accurate records behind it.

If your small business is registered for GST, or getting close to the point where registration may need to be reviewed, your bookkeeping needs to keep up. That means your sales, expenses, tax invoices, GST coding and BAS information all need to be recorded properly.

GST is not extra income sitting in the bank. It is collected and reported through your activity statement, so it needs to be tracked as part of your regular bookkeeping process.

First Class Accounts Ovens & Murray is a registered BAS Agent and supports small business owners with GST bookkeeping, BAS preparation and lodgement, cash flow timing and practical record keeping.

When GST registration needs attention

For most Australian businesses, GST registration is required once GST turnover reaches $75,000 or more. Taxi and ride sourcing drivers need to register for GST regardless of turnover, and non profit organisations have a higher threshold of $150,000. Once a business is required to register, the ATO states it generally needs to do so within 21 days.

From a bookkeeping perspective, the important part is keeping your records current enough to see when turnover is changing. If your books are behind, it becomes harder to know whether GST needs to be reviewed.

First Class Accounts Ovens & Murray can help monitor the numbers in your accounting software, keep records up to date, and provide accurate information for GST and BAS purposes. If broader tax advice is needed, that can be discussed with your accountant or tax adviser.

GST turnover is not profit

The $75,000 GST threshold is based on GST turnover. This means gross business income, with some exclusions. It does not mean profit.

This matters because a business can have strong sales and still have tight cash flow. If you are only looking at the amount left in the bank after wages, suppliers, rent, stock and other expenses, you may not have an accurate view of your GST position.

Regular bookkeeping helps you see what is happening before it becomes urgent. Current records make it easier to track sales, review GST turnover, and plan for BAS payments.

GST records need the right setup

Once GST applies to your business, your accounting software needs to record it properly.

That includes using the correct GST codes, setting up invoices correctly, recording expenses with the right tax treatment, attaching tax invoices and receipts where needed, and keeping bank reconciliations up to date.

This is where small mistakes can cause bigger headaches later. If GST codes are inconsistent, invoices are set up incorrectly, or receipts are missing, BAS preparation can take longer than it should.

First Class Accounts Ovens & Murray can review your bookkeeping setup, check GST coding, reconcile accounts and prepare BAS information so your records are accurate and ready for lodgement.

GST and BAS support for small business

GST is easier to manage when your bookkeeping is current, accurate and set up around the way your business works.

The ATO notes that BAS is used to report and pay GST, PAYG instalments, PAYG withholding and other tax obligations. Registered BAS agents can also prepare, lodge and revise activity statements using ATO online services.

First Class Accounts Ovens & Murray provides reliable bookkeeping and BAS Agent support for small business owners who want their records maintained properly, their BAS prepared accurately, and their payment obligations easier to manage.

If your GST records are behind, your BAS feels rushed, or your accounting software is not giving you useful information, it may be time to review the process.

Get in touch with First Class Accounts Ovens & Murray to talk through GST bookkeeping, BAS lodgement and record keeping support for your business.

Common GST questions for small business owners

What bookkeeping records do I need for GST?

You need records that show your sales, expenses, tax invoices, receipts, bank transactions and GST amounts. Your accounting software should also be set up so GST is coded correctly and BAS information can be prepared accurately.

Is GST turnover the same as profit?

GST turnover is based on gross business income, with some exclusions. It is not based on profit. This is why regular bookkeeping matters, because your bank balance alone may not show whether your turnover needs attention.

How can a bookkeeper help with GST?

A bookkeeper can help keep records up to date, review GST coding, reconcile bank accounts, organise tax invoices and receipts, prepare BAS information, and provide reports that show upcoming GST and BAS obligations. If GST registration advice or transaction specific tax advice is needed, your bookkeeper can work alongside your accountant, registered tax adviser or BAS agent.

When to Register Your Business for GST

When to Register Your Business for GST

When to Register Your Business for GST

Should you register your business for GST?

Many business owners register their businesses from day one, regardless of income. Others, for example, many sole traders, choose not to register for GST until it is mandatory.

However, it is common that new businesses don’t realise they have exceeded the income threshold at which they must register! This can result in having to pay GST on sales to the ATO even if you haven’t included it in your prices – so you could lose one-eleventh of your income.

When is GST Registration Compulsory?

Your business must register for GST when it makes $75,000 income within a financial year. If you’re regularly making $6,250 or more each month, it’s time to check whether you should register for GST.

It’s good practice to check your turnover every quarter, and when you are getting close to the threshold, check every month. If you’re not yet using online accounting software, talk to us about your options, as this will make reporting and preparing for GST registration much easier.

You must register for GST within 21 days of reaching the threshold.

Special Rules

  • You can voluntarily register even if your turnover is less than $75,000. This means you can complete an annual BAS if you prefer.
  • If you’re making money through a ride-sharing platform like Uber, you must register for GST immediately. All commercial driving income, regardless of turnover, is subject to GST registration.
  • If you want to claim fuel tax credits, you must register.
  • If your business is a not for profit, the registration threshold is $150,000 per financial year.
  • If you’re not an Australian resident business, the rules for working out GST turnover are different, so talk to us before registering.

Need Help?

When starting a new business, there are many decisions to make, and GST registration is just one of them. Get in contact about the benefits of registering, and we'll help you get set up on appropriate accounting software to help you on your way to business success.

Benefits of a BAS Agent for your business

The benefits of engaging a BAS Agent for your business

Do you spend too much time on your accounts? It could be time to engage the services of a BAS agent to help you with bookkeeping and ATO reporting.

Working with a BAS agent can benefit your business more than you may realise! We’d love to talk about how we can help save you time and money.

Many business owners starting out try to save on costs by doing their own bookkeeping, but this is one of the first tasks you can outsource to give yourself time and save money. If you can work on your business to generate more sales, why spend that valuable time on administration and accounts management?

A BAS agent is a registered tax professional who can provide a greater variety of services than a bookkeeper. BAS agents are trained in the complexities of GST and other laws – meaning you don't have to become an expert in areas that are not your passion or skillset.

What a BAS Agent can do for your business

Once the agent has become familiar with your business operations, they can not only take care of the transactional recording, financial reporting and compliance requirements, but they can assist you in better understanding your day-to-day business performance. A

BAS agent can become a trusted member of your management team along with your tax agent, providing accurate and timely financial advice and insights to help you make better business decisions and plan for long-term success.

BAS Services

A BAS agent can ascertain and advise the business owner on correct liability amounts and submit statutory reports to the ATO and other agencies on behalf of the owner.

BAS provisions include determining GST liabilities, PAYG withholding obligations, employee superannuation contributions, and submitting taxable payments reports and Single Touch Payroll.

What makes a great BAS Agent?

Professional BAS agents keep up with ongoing education and development, use industry best practices, take the time to ask questions and understand your organisation, and do their best to assist and advise your business.

They will work proactively to support the business by ensuring the integrity of the accounts and providing accurate financial reports. They will be able to discuss your business’s financial health, assess operations and systems, and give you valuable advice.

If you think it’s time to engage a professional BAS agent, get in touch and let’s talk about how this can benefit your business and save you time and money.