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Business entities report and pay GST amounts to ATO, and claim GST credits, by lodging a business activity statement (BAS) or an annual GST return. ATO issue entity’s activity statement about two weeks before the end of your reporting period, which for GST is usually every three months. The date for lodging and paying is shown on the activity statement.
There three methods of GST report, Monthly, Quarterly and Annually. If annual sales amount is over $ 75,000 or for taxi business, GST registration is compulsory, otherwise GST registration is voluntary.
1. Annual GST reporting
If you voluntarily registered for GST and the entity have not made an election to pay GST by instalments, you can choose to report and pay and claim GST credits annually.
There is only a limited period each year you can make this choice. Entities that must register for GST cannot choose to report annually.
The entities that should report annually are as followings
– Annual Sales amount is below $ 75,000 (Non-profit entity – below $ 150,000)
– Not a taxi business
As above, only voluntary GST registration entity can choose Annual GST reporting and if you do not meet the above conditions, the entity have to report GST Quarterly or Monthly.
Due date for annual GST reporting is the same date as the entity’s income tax return due date. If the entity do not have to report income tax, the entity’s annual GST due date is 28 Feb, following year.
2. Quarterly reporting
If your GST turnover is less than $20 million and we have not told you that you must report GST monthly, you can report and pay GST quarterly.
If you report and pay quarterly, you have three reporting options.
Option 1: work out, report and pay GST quarterly – you may do this electronically
Option 2: work out, report and pay GST quarterly and provide further information annually in an annual GST information report
Option 3: pay a GST instalment amount quarterly and report annually in an annual GST return.
You can choose option 3 only if you meet some eligibility requirements and one of the following applies: you are a small business with an annual turnover of less than $2 million or you are an enterprise with a GST turnover of less than $2 million.
3. Monthly reporting
Businesses with a GST turnover of $20 million or more must report and pay GST monthly and lodge their activity statement electronically.
ATO also require some other businesses to report monthly – you can check it on ATO homepage. Other businesses may choose to report GST monthly.
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