Tax and GST

Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

There is an excellent page on GST at http://www.ato.gov.au/businesses/content.asp?doc=/content/66994.htm&pc=0...

You must register for GST if you are in business and your GST turnover is at or above the registration turnover threshold of $75,000 per year.

You may choose to register if the turnover of your enterprise is below the registration turnover threshold.

An excellent introduction to ABNs (Australian Business Number) is at http://www.ato.gov.au/businesses/content.asp?doc=/content/13285.htm&pc=0...

Companies registered under the Corporations Law and business entities carrying on an enterprise in Australia are entitled to an ABN.

Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise. Please be aware of the difference between a hobby and a business.

Applying for an ABN is not compulsory. However, if you are required to register for GST, you will need to apply for an ABN as well.

All businesses with an GST turnover of $75, 000 or more must register for GST and will need an ABN to do this. This can be done on the same form. Organisations with a lower annual turnover may choose to register.

If you are not required to register for GST, you can still apply for an ABN.

A useful page is the ATO checklist for people starting a small business.