GST on Property in Australia: Residential, Commercial and New Builds Buying an existing house to live in? No GST. Buying a brand-new apartment off the plan? 10% GST is baked into the price. And commercial property? Always taxable, whether it’s a sale or a lease. Those three rules cover most situations. But property GST gets…
GST on a Car in Australia: New, Used, Private and Business A new car from a dealer includes 10% GST in the drive-away price. A used car from a dealer also includes GST. But buy that same car privately and there’s no GST at all. The seller’s GST registration status is what determines the tax,…
GST on Overseas Subscriptions and Digital Services in Australia Yes, most overseas digital subscriptions include 10% Australian GST. Since 1 July 2017, overseas companies like Netflix, Spotify, Adobe and Microsoft have been required to charge GST when selling digital products to Australian consumers. The rule applies even though the supplier has no office, staff or…
7 Common BAS Mistakes and How to Avoid Them The seven BAS mistakes below are the ones the ATO flags most often, and they’re all avoidable. Late lodgement, wrong GST codes, missing invoices, personal expenses claimed as business, mixing up cash and accrual reporting, forgetting to lodge a nil BAS, and skipping the reconciliation step…
A valid Australian tax invoice must include seven specific details set by the ATO. Miss even one, and your customer can’t claim their GST credit — which means an awkward phone call and a potential hold-up at BAS time. Here’s exactly what the ATO expects, the thresholds that change the rules, and the mistakes that…
An ABN and GST registration are two separate things, and having one doesn’t automatically give you the other. Your Australian Business Number identifies your business. GST registration is a separate step that only kicks in when your turnover hits $75,000 — or when you fall into a handful of special categories. You need an ABN…
An input tax credit is the GST included in the price of something you buy for your business. If you’re GST-registered, you claim that GST back from the ATO through your BAS. Buy $550 worth of office supplies (including $50 GST), and that $50 comes back to you. It reduces your GST bill — or…
The GST margin scheme lets you pay GST on the profit margin of a property sale instead of the full sale price. On a property bought for $600,000 and sold for $1.1 million, the standard method charges GST on the entire $1.1 million — that’s $100,000. The margin scheme charges GST only on the $500,000…
A GST-inclusive price is the total amount a customer pays, with the 10% GST already baked in. A GST-exclusive price is the base amount before GST gets added. The dollar figure changes, but the GST itself is identical. A $1,000 ex-GST job and a $1,100 inc-GST job are the same job — the only difference…
You divide by 11 because a GST-inclusive price is made up of 11 equal parts — 10 parts base price and 1 part GST. The GST isn’t 10% of the total. It’s 10% of the original price before GST was added. That’s a different number, and mixing them up is the single most common GST…
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