GST Thresholds

Various thresholds for concessions and obligations apply for GST purposes. This is a summary.

For the meaning of “GST turnover” see GSTR 2001/7

In general, for a supplier to be liable for GST on a taxable supply, one of the requirements is that the supply must be connected with Australia. See GSTR 2018/1 Goods and Services tax: supplies of real property connected with the indirect tax zone (Australia).

 

AboutThreshold/period
GST calculationsThe basic GST percentage rate is calculated as 10% of the value of a taxable supply. See taxable sales
Compulsory Tax Invoice or adjustment noteGST-exclusive value of supply of more than $75
Tax invoice information must (additionally) include the buyer’s identity or ABNSales of $1,000 or more (see also: tax invoice template)
Annual basis (optionally) for reporting and paying GST – for businesses voluntarily registered, GST turnover is below the registration thresholdGST turnover of less than $75,000 (or $150,000 for non-profit bodies)
Annual apportionment (optionally) of input tax credits can be made by Small Business Entities and entities not carrying on a businessGST turnover of $2 million or less ($10 million or less from 1 July 2016)
Input tax credits are limited on higher-priced cars (based on the GST-inclusive market value)See Car depreciation limit
GST registration is mandatory if GST turnover is over the registration thresholdGST turnover of $75,000 (or $150,000 for non-profit bodies and body corporates) or more
Monthly GST returns are compulsory for larger businessesGST turnover of $20 million or more
Monthly GST returns are also compulsory if..carrying on enterprise in Australia for less than 3 months
Monthly GST returns are also compulsory if..requested on the basis of past compliance performance
Electronic lodgement of GST returns is compulsory for larger businessesGST turnover of $20 million or more
Input tax credits can be claimed on financial acquisitions which are below the ‘financial acquisitions threshold’, and less than 10% of the entity’s total input tax creditsAnnual input tax credits of $150,000 (equivalent to a GST-inclusive annual threshold of $1,650,000) See further: GSTR 2003/9
Small business entities and entities not carrying on a business can elect to pay their GST in quarterly instalmentsGST turnover of $2 million or less ($10 million or less from 1 July 2016)
Food retailers – simplified accounting methods (‘SAMs’ – 5 methods) when selling both taxable and GST-free food from the same premises‘SAM turnover’ of $2 million or less. See SAM Guide
GST-free low value imports (of supplies not connected with Australia)Customs value of $1,000 or less (see examples and also note amendment to remove this concession from 1 July 2018)
GST on FoodThere is a broad exclusion of GST on food provided under Section 38-2 of the GST Act. See more here.

See also:

Deferred GST scheme for importers

This page was last modified 2018-08-23