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Trevor Monaghan
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Hi Sam,

You don’t need to be registered for GST until your “taxable supplies” are expected to be greater than $75,000. This does not include exports which are not taxable supplies in case that’s a factor for you. As Simon alluded to, you may still want to be registered for GST even if you don’t have to be. If you are making a loss at the moment then you might be entitled to GST refunds on the GST you are paying your suppliers, but you have to be registered to claim.

You would also want to be registered for GST if you don’t want your customers or suppliers knowing how small you are. That is, you can’t go around telling people you are successful, then issue them an invoice without GST…not a good look! I see a lot of this happening and you lose all credibility.

If you decide to not register for GST, cover yourself by putting together a budget showing your expected income to be less than $75,000 for the next 12 months. If you end up going over the $75,000 and the ATO challenges you, it would be nice to pull out the original budget as proof that the turnover was higher than you had actually anticipated.

Good luck with the business!

Trevor Monaghan
Chartered Accountant
Climax Business Strategies