Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. If your business has a turnover of $75,000 or more per year — or $150,000 if you are a non-profit — you must register for GST and start collecting it from customers. For freelancers, sole traders, and small business owners, understanding your GST obligations, ABN requirements, and Business Activity Statement (BAS) lodgement is fundamental to staying compliant with the ATO.
This cluster covers GST basics, BAS lodgement, the tax obligations of sole traders and self-employed people, Fringe Benefits Tax (FBT), and the state-based payroll tax system.
GST Fundamentals
- GST Australia Explained — How Goods and Services Tax Works — The 10% rate, taxable vs GST-free vs input-taxed supplies, and why businesses collect it on behalf of the government
- When Do You Need to Register for GST? — The $75,000 threshold, voluntary registration below the threshold, and rideshare/taxi drivers (must register regardless of turnover)
- How to Register for GST — Registering via ABN application or separately through the ATO Business Portal, and what happens after registration
- GST-Free vs Input Taxed Supplies — The difference between GST-free items (basic food, exports, education, healthcare) and input-taxed supplies (residential rent, financial services)
- GST on Property Transactions — The GST rules for new residential property sales, commercial property, and the margin scheme
Business Activity Statement (BAS)
- BAS — Business Activity Statement Explained — What a BAS covers (GST, PAYG withholding, PAYG instalments, FBT instalments), lodgement frequency, and how to lodge
- How to Lodge a BAS — Online lodgement via myGov/business portal, through a BAS agent, or via accounting software (Xero, MYOB)
- BAS Deadlines and Penalties — Monthly, quarterly, and annual BAS deadlines, and the penalty regime for late lodgement
Sole Trader and Self-Employed Tax
- Sole Trader Tax Australia — How It Works — How sole traders are taxed on business income (as individuals), the business schedule, and allowable deductions
- How to Set Up an ABN — Registering for an Australian Business Number, the free process via abr.gov.au, and what you can do with an ABN
- PAYG Instalments for Self-Employed and Investors — When the ATO puts you into the PAYG instalment system, how to vary your instalments, and the four-quarter payment schedule
Fringe Benefits Tax (FBT)
- Fringe Benefits Tax Explained — The 47% FBT rate, the FBT year (1 April – 31 March), the three methods for calculating FBT, and which benefits are exempt
- FBT Exemptions — Electric Vehicles and Salary Packaging — The electric vehicle FBT exemption, the $9,000 minor benefits exemption, and common exempt benefits (work laptops, portable devices)
Payroll Tax
- Payroll Tax Australia — State by State Guide — Each state’s threshold and rate (NSW: $1.2M at 5.45%; VIC: $900k at 4.85%; QLD: $1.3M at 4.75%; WA: $1M at 5.5%), and how it is calculated
- What Is Payroll Tax and Who Pays It? — The employer obligation, the annual versus monthly liability, and whether contractors are included in the calculation
- Payroll Tax Grouping Provisions — How related companies are grouped for payroll tax purposes, and why a holding company and subsidiary share one threshold
Small Business Tax Concessions
- Small Business Tax Concessions Australia — Instant asset write-off, simplified depreciation rules, trading stock concessions, and income averaging available to businesses under the $10M threshold
- Instant Asset Write-Off — Current Rules — The current threshold for immediate deduction of asset purchases, the small business eligibility, and how to claim in your tax return
This section provides general tax information for educational purposes. Tax rules for businesses are complex and penalties for non-compliance can be significant. For advice tailored to your situation, speak with a registered tax agent or BAS agent. Find one through the Tax Practitioners Board register.