The Federal Government has announced a change to the GST registration threshold, with those turning over less than $75,000 per year, $150,000 for not-for-profit organisations, being exempt from registering.
The full text of an announcement is pasted below
From 1 July 2007 it will be easier for small businesses to comply with their tax obligations due to changes to GST registration thresholds and greater access to a range of tax concessions.
Minister for Revenue and Assistant Treasurer, Peter Dutton, said most small business in Australia with an annual turnover of less than $2 million will benefit from the changes.
"Eligible businesses will now be able to reduce their compliance costs by taking advantage of a range of concessions for GST, income tax, capital gains, pay as you go instalments and fringe benefits," Mr Dutton said.
Businesses whose annual turnover is greater than $2 million may still be eligible for capital gains and fringe benefits concessions under the existing rules.
Minister for Small Business and Tourism, Fran Bailey, said the change to the threshold means more businesses will be entitled to access concessions which will reduce their compliance costs.
"Business will also benefit from the important changes for registering, reporting and paying their GST."
"The threshold for registering for GST has increased, so businesses will only be required to register for GST if their turnover is $75,000 or over," Fran Bailey said.
The threshold for non-profit organisations has increased to $150,000.
Businesses with a turnover under the new thresholds, or who voluntarily register for GST have the option to:
- continue with their current arrangements
- choose to report and pay GST annually, or
- cancel their GST registration.
- Businesses no longer need a tax invoice to claim GST credits for purchases under $82.50 (including GST).
The Tax Office will be able to offer simplified accounting methods to all taxpayers with an annual turnover of less than $2 million that make both taxable and GST free supplies or purchases.
Further information outlining the small business concessions and GST changes is available on the Tax Office website www.ato.gov.au/SBconcessions
