DISCLAIMER: the information contained in this tax tip are general comments only and do not constitute or convey advice perse. Individuals should seek their own independent advice from a qualified advisor to ascertain how the taxation law applies in their individual circumstance. The information contained is given in good faith and is believed to be accurate. However, neither Childcare Accounting & Financial Services nor any of its employees give any warranty of reliability or accuracy nor accept any responsibility in any way including by reason of negligence for errors or omissions herein.
Report GST once a year
If you are registered for GST and struggle to lodge your BAS every quarter, or would prefer to reduce your paperwork during the year, you may be able to elect to report your GST once a year. If this is something you would like to consider, you must make this election in your September 2011 quarter BAS. If you fail to do this you will not be able to choose this reporting option again until September 2012.
As indicated above, if you are able to register for GST on an annual basis you will only need to lodge a BAS once a year. This BAS statement is generally due the same day as your tax return and therefore will allow you to prepare your tax return and BAS at the same time.
The key eligibility requirement for an educator to report only once a year is that your turnover is less than $75,000, and therefore not required to be registered for GST.
What if I am required to pay PAYG Instalments
If you decide to register annually for GST, and your most recent notional tax as advised by the Australian Taxation Office (ATO) is less than $8,000, you may also elect to pay your PAYG tax instalment once a year. The main requirement if you choose this option is that you pay and lodge your tax return by 21 October after the end of the applicable financial year.
If this is not what you would like, you may still continue to calculate and pay your instalment every quarter, even if you are registered to report GST Annually. In this circumstance, you would receive an Instalment Activity Statement (IAS) every quarter from the tax office for paying your PAYG Instalments, and then you would receive your BAS or Annual GST return at the end of the financial year.
Please contact us if you would like any further information on this topic.
As indicated above, if you are able to register for GST on an annual basis you will only need to lodge a BAS once a year. This BAS statement is generally due the same day as your tax return and therefore will allow you to prepare your tax return and BAS at the same time.
The key eligibility requirement for an educator to report only once a year is that your turnover is less than $75,000, and therefore not required to be registered for GST.
What if I am required to pay PAYG Instalments
If you decide to register annually for GST, and your most recent notional tax as advised by the Australian Taxation Office (ATO) is less than $8,000, you may also elect to pay your PAYG tax instalment once a year. The main requirement if you choose this option is that you pay and lodge your tax return by 21 October after the end of the applicable financial year.
If this is not what you would like, you may still continue to calculate and pay your instalment every quarter, even if you are registered to report GST Annually. In this circumstance, you would receive an Instalment Activity Statement (IAS) every quarter from the tax office for paying your PAYG Instalments, and then you would receive your BAS or Annual GST return at the end of the financial year.
Please contact us if you would like any further information on this topic.