Goods and Services Tax (GST) is a broad based tax on most goods and services sold within Australia.
Business entities with an annual turnover of $75,000 or more must register for GST. Not for profit organisations with a turnover of $150,000 or more must also register for GST.
GST registered businesses include GST in the price of their Sales and claim GST credits in the price of their business purchases. As GST is paid and credits claimed at every step of the supply chain, the economic cost of the GST is borne by the end consumer who cannot claim GST credits.
Businesses use an Activity Statement to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Activity statements are also used by individuals who need to pay quarterly PAYG instalments.
The Tax Office (ATO) will issue you with your activity statement about two weeks before the end of your reporting period. You need to complete and lodge your activity statement by the due date and pay any amounts due.
You should keep a copy of your completed activity statement and the records you used to prepare it for five years.