Chapter 15

Collecting Tax for the Government: Goods and Services Tax

In This Chapter

arrow Recognising taxable and input taxed sales

arrow Working out if you have to register for GST

arrow Preparing a business activity statement (BAS)

A goods and services tax (GST) was introduced in Australia on 1 July 2000. This broad-based tax of 10 per cent is added on to the cost of most goods and services sold or consumed in Australia. The A New Tax System (Goods and Services Tax) Act 1999 (GST Act) requires entities, particularly business entities registered for GST, to collect 10 per cent tax from their customers and remit the amount to the Tax Office on either a monthly, quarterly or annual basis.

In this chapter, I discuss the three different types of GST sales (or supplies) and how GST is collected only on taxable sales. Further, if you register for GST (refer to Chapter 13), you can claim a GST credit in respect of any GST you’re charged on your own acquisitions that are made in the course of making supplies (other than input taxed supplies).

Collecting 10 Per Cent

Under the GST provisions, you’re likely to enter into three types of GST sales (or supplies — see Figure 15-1):

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