GST

GST exemption makes essential products affordable and accessible. Businesses do not pay GST on exempt goods. They distinguish between taxable and non-taxable sales for proper reporting. Businesses can also claim GST credits when selling GST exempt goods. Export of Goods Goods exported from Australia are GST-exempt if they leave the country within 60 days, whichever comes first: The supplier issues an invoice for the goods. The supplier receives full or partial payment for the goods For instalment payments, the final payment or invoice confirms the 60-day rule. If necessary, suppliers can request an extension of this period. Selling a Business As a Going Concern A sale of a business is considered GST-exempt when all of the following conditions apply: The seller transfers everything necessary to continue the business. The seller continues to operate the business until the settlement date. The buyer and seller agree in writing that the sale is a going concern. The buyer registers for GST or is required to register. The buyer pays for the purchase. GST Exemption for Qualifying Veterans Disabled veterans can use a form approved by the Department of Veterans Affairs to claim an exemption on motorcycles and related parts. If you do not submit a declaration before you buy a car or car parts, the supplier may add GST to your purchase. You can apply for a GST refund after the purchase, but it is easier to submit a declaration in advance. The tax law does not allow us to refund GST directly on cars or parts you have already purchased. GST Exemption on Imported Goods You must pay GST on imported goods unless they fall under a specific customs duty exemption or GST exemption. When you import goods under an exemption, you can verify the exemption you are claiming by using the exemption code in the department’s system. The available exemptions and their corresponding codes are listed below. The following acts provide for GST exemption on imported goods: Diplomatic Privileges and Immunities Act 1967 Consular Privileges and Immunities Act 1972 International Organisations (Privileges and Immunities) Act 1967 New Taxation (Goods and Services Tax) Act 1999 GST-Exempt Supplies to NDIS Participants Subsections 38-38 – National Disability Insurance Scheme (NDIS) Scheme Supplies Sections 38-38 of the GST Act state that certain disability support provided to NDIS participants is GST-exempt if it meets certain requirements. These supplies include goods specified by the Minister for Disability Services under the New Taxation (Goods and Services Tax) (GST-Exempt Supplies—National Disability Insurance Scheme Support) Determination 2021. Supplies provided to NDIS participants are GST-free if they meet all of these conditions: The NDIS participant has an active NDIS plan. These supplies appear in the table in the 2021 GST-free supplies determination. You and the NDIS participant (or other person) sign a written agreement. These supplies include reasonable and necessary support listed in the participant’s NDIS plan. AB14 Sections 38-39 of the GST Act confirm that support provided under the NDIS remains GST-free if it meets the stated requirements. This includes supplies included in the 2021 determination issued by the Minister for Disability Services. Supplies provided to an NDIS participant will be considered GST-free if: The participant has an existing NDIS plan. These supplies appear in the tables of the GST-Exempt Supplies Determination 2021. A written agreement exists between you and the participant (or other person). The support is reasonable, necessary and set out in the NDIS plan. Explanation: Use the following explanation as a guide only. Always refer to the relevant legislation for full details. Sub-sections 38-45(1) – Medical aids and equipment Sub-sections 38-45(1) of the GST Act, supported by section 13-10(b), provide exemption for certain medical aids and equipment. This exemption applies to: Goods listed in Schedule 3 of the GST Act, and Goods included in Schedule 3 of the GST Regulations. How GST Affects Australian Businesses GST affects businesses by adding tax to most goods and services sold, making it mandatory for owners to manage tax collection and submit regular Business Activity Statements (BAS). Any Australian business with a turnover of $75,000 or more must register for GST and include it in its prices. This tax structure simplifies tax collection and ensures government compliance, creating a fair business environment. GST affects cash flow as owners have to pay tax on a quarterly basis, often submitting the collected amount to the Australian Taxation Office (ATO). This requires strong records and accurate financial reporting. Businesses benefit from GST by claiming credit for GST paid on supplies and purchases. However, errors or failure to comply can result in significant fines and penalties. Toowoomba business owners, as well as larger enterprises, should focus on strengthening tax strategies to understand these obligations and protect their financial position. For example, adopting accounting software makes GST tracking easier and ensures your business never misses important deadlines or tax credit opportunities. Compliance And Accurate Record Keeping The Importance of Record Keeping To ensure GST compliance, businesses must keep detailed records of sales, purchases and the GST involved in each transaction. Maintaining this level of detail ensures smooth operations during audits by the Australian Taxation Office (ATO) and provides protection. Owners are legally required to keep these records for at least five years, which also protects them in the event of disputes or reviews. Efficient record keeping helps to file accurate Business Activity Statements (BAS) to reduce the risk of penalties and errors. For businesses in Toowoomba and across Australia, adopting a structured approach has streamlined the process. Compliance now goes beyond regulatory rules; It strengthens financial stability and protects a company’s reputation. Conclusion: Strengthening GST Practices Strong GST practices in Australia depend on understanding how this tax affects pricing models, cash flow and compliance requirements. For entrepreneurs and high-income earners, particularly in Toowoomba, incorporating this knowledge into daily operations ensures financial security and increases the potential for long-term growth. Ultimately, compliance demands full attention. Adhering to GST reporting and payment deadlines can help you avoid unnecessary penalties. Set up automatic reminders for BAS submissions and