leadership and management materials with questions
Bader2012
GSTPresentation.pptx
Good and Services Tax
GST
What is it?
GST is the Goods and Services Tax
It is a broad based tax on the supply of most goods and services and anything else consumed and sold in Australia.
Some products and services are GST exempt and these include basic foods, some education courses, some medication and health services
GST is charged at the current rate of 10% and is calculated at the point of sale.
You must register for GST if your business turnover is $75,000 per annum or over ($150,000 for a non-profit organisation)
Example
If I sell a Career Report for $90.00 I need to add 10% GST, so the Invoice will be $99.00
This will either be termed $90.00 plus GST - $99.00
Or $99.00 (including GST)
Businesses then complete a BAS (Business Activity Statement) on a regular basis. (I do this quarterly)
I will tally the GST amount received (owed to Tax Office) and the GST spent (owed to me). And the difference will either be paid to the Tax Office, or paid to me
Example – GST in
When calculating the amount of GST in total income you need to divide by 11, not 10.
The example I used earlier of the $99 Invoice that I sent was $90 plus GST. But if I divide the Invoice amount by 10, the GST amount is $9.90 which is not correct.
If I divide by 11 the amount of GST is $9 which is what I added in the first place
My total income for the quarter is $68,000 (incl GST)
To calculate GST divide $68,000 by 11. The GST received will be $6,182
GST – out
I spend $23,000 on legitimate expenses for the quarter so the GST I paid out is $23,000 divided by 11 - $2,091
Therefore I received $6,182 in GST and paid out $2,091 in GST
The GST coming in ($6,182) less the GST going out ($2,091)
The difference is $4,091 which I need to pay to the Tax Office.
If I paid out more in GST than I received in the Q, the Tax Office would owe me the difference.
