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Business caught by GST checks

Small businesses are being caught short by requests from their customers to show they are GST-ready.

It seems some small business owners thought simply adding an extra 10 per cent to their prices was enough to become GST compliant.

Grant Thornton managing partner Geoff Kidd said many businesses wanted to know if their suppliers could furnish GST-ready documents so they could claim input tax credits.

From 1 November, businesses will also have to make the choice whether they register for GST or not.

If a business turns over more than $50,000 a year, then registering for the GST is compulsory.

“While the GST comes in on 1 July, it is really a concern from now on,” Mr Kidd said.

“However, it is not just tax issues small businesses need to worry about.

“Contracts need to be reviewed to make sure allowances are in place for the extra GST charge and accounting systems need to be reviewed.”

Grant Thornton has a GST checklist which the company goes through with its clients.

“A lot of our clients did not realise how much change was required,” Mr Kidd said.

Small Business Development Corporation managing director George Etrelezis said it was too early to be asking businesses whether they were GST ready.

“You can’t ask people to be GST ready because they have not received their Australian Business Number yet,” Mr Etrelezis said.

Applications for ABNs will only start to go out in November.

However, for those businesses wanting to find out more about the GST, the SBDC is operating a GST centre where people can sit down one-on-one with trained SBDC staff or phone in with their GST queries.

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24th-ChemCentre$16.0m
25th↑Aqwest$15.9m
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29 state government businesses ranked by total revenue - this year

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