4 Reasons Why You Should Register for GST in Australia



Whether you're a business owner, contractor, freelancer, or worker in Australia, chances are you've wondered at some point whether or not you should register for GST (Goods and Services Tax). In this blog post, we'll outline four key reasons why you should take the plunge and register for GST.

1. You Could Be Missing Out on Potential Customers

If your business is registered for GST, that means you can claim GST credits on any business-related purchases you make. But did you know that registered businesses can also charge GST on the goods and services they provide? That's right—if you're not registered for GST, you could be missing out on customers who are only willing to do business with companies that charge GST 

2. You Could Be Losing Money by Not Claiming GST Credits 

As we mentioned in the first point, if you're not registered for GST you're missing out on claiming GST credits. This can amount to a significant chunk of change over time, particularly if your business spends a lot on GST-taxable goods and services. Make sure you're not leaving money on the table by registering for GST and claiming those all-important credits.

3. You Could Be Facing Stiff penalties if the ATO Comes Knocking 

If the Australian Taxation Office (ATO) suspects that your business should be registered for GST but isn't, they have the power to impose fines and penalties. To avoid any potential run-ins with the ATO, it's best to err on the side of caution and register for GST even if you're not 100% certain your business is required to do so 

4. You Might Need to Register for GST Anyway… 

In some cases, businesses are required to register for GST even if they don't want to. For example, if your annual turnover is more than $75,000 (or more than $150,000 for non-profit organisations), you must register for GST. So, even if you weren't planning on charging GST on your goods and services, you may need to register for the tax anyway— might as well make the most of it and start claiming those valuable credits! 

Conclusion 

There's no doubt about it—registering for GST comes with a number of advantages for businesses large and small. From gaining an edge over the competition to earning valuable tax credits, there are plenty of good reasons to sign up for GST in Australia. So what are you waiting for? Get started today! Download the Tax App!