Australian GST registration: the records behind the return
Registration, invoices, credits and reporting are separate questions. Know what to check before turning a list of amounts into a business activity statement.
Registration is a separate decision from calculating an amount
A GST calculator can split a taxable price into its tax and pre-tax components. It cannot decide whether your business must register, whether a particular sale is taxable or which purchases qualify for credits. Establish those facts before using the result in an invoice or return.
The Australian Government's GST registration guide (opens in a new tab) lists a general business threshold of A$75,000 and A$150,000 for non-profit organisations. GST turnover is a defined income measure, not profit. Taxi and ride-sourcing services, and businesses seeking fuel tax credits, have registration requirements regardless of turnover. Non-residents can face special rules. Check expected turnover as well as what has already happened; the guide states a 21-day registration period after becoming aware the threshold will be exceeded.
Registration below the threshold can be voluntary, but it brings reporting obligations. If you have not registered, do not simply add GST to an invoice because a calculator displays it. The government guide explains that unregistered businesses do not include GST in their prices or claim GST credits for purchases.
Start with the actual invoice
The government's invoicing guidance (opens in a new tab) distinguishes a tax invoice from an ordinary invoice. A tax invoice identifies the business and ABN, issue date, what was supplied and the GST payable, with additional details required in some circumstances. It is more than a total followed by the words “GST included”.
Check the invoice requirements that apply to the transaction, including when a customer requests a tax invoice. If an invoice is incomplete or incorrect, arrange a corrected document. Keep the source document alongside the recorded amount so a later review can establish what was bought, from whom and when. A calculation by itself supplies none of that evidence.
A purchase total does not establish a GST credit
The government learning resource GST fast facts (opens in a new tab) explains that credits generally concern GST included in purchases used for the business. Personal purchases do not qualify, and mixed business/private use requires apportionment. Check the actual GST on the invoice instead of assuming every expense contains the same tax component.
The resource also distinguishes cash from non-cash accounting. That choice affects the reporting period in which sales and purchases are recognised; the day a transaction is typed into a spreadsheet is not automatically the relevant date. Confirm the applicable method before using a list of expenses to prepare a BAS. This article does not calculate an apportionment or choose an accounting method for you.
Keep records that can explain the return
The government's record-keeping guidance (opens in a new tab) includes sales, expenses, bank records and GST records. Include cash purchases and the records needed for your business structure. Paper and digital systems can work, but the records need to remain readable, secure and available when required.
Back up digital records and retain access to the systems holding them. Most business records must be kept for five years from when you got the records or completed the related transactions or actions, whichever is later. Some records must be kept longer. A saved total is not a replacement for the documents explaining it. If you export a browser tool, check what the export actually contains and retain the original records separately. business.gov.au: record keeping (opens in a new tab).
Reconcile before lodging
The government's BAS guide (opens in a new tab) explains that the statement can cover GST and other taxes. The sections you complete depend on your registrations and reporting arrangements. Reconcile the figures to your records, use the correct reporting period and complete only the relevant sections.
Follow the due date on your statement and arrange payment where due. Lodgment options include ATO online services, compatible reporting software and a registered tax or BAS agent. Check an agent's registration with the Tax Practitioners Board. A downloaded tool file is not a lodged BAS, and this website does not submit it to the ATO or confirm that your records meet every tax requirement.