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interAccounts
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Hi Davey,

Taxpert got it right with claiming notional GST on certain purchases. The link he included is a must read for you to ensure your Accountant is doing the right thing for you. It is possible to amend prior BAS already lodged with the ATO if errors were made.

If you decide to stop your GST registration, you will need to give the ATO a reason why you’ve decided to do so. The main reasons used are:

  • Business has closed down / sold / never traded;
  • Change of entity structure;
  • Never operated on GST registered basis & turnover is less than GST Threshold; or
  • Stopped operating on GST registered basis & turnover is less than GST registration threshold

The major pro with deregistering GST is that you no longer need to complete BAS each quarter. You’ll still need to keep your bookkeeping up to date so you know where your business is heading.

Businesses would prefer to buy goods from GST registered entities so that the GST on their purchases are offset against their collected amounts – so if you decide to deregister from GST, then you may loose this type of customer (if you had them already).

It would be best to discuss this with your accountant as they know your specific details and therefore can give you the correct advice.

In relation to costs involved with your bookkeeping, check what hourly rate your accountants are charging you. Most accountants don’t have a special bookkeeping rate and charge at the accounting/tax rate, so it may be cheaper to engage a dedicated bookkeeper. Some accountants may have bookkeeping as part of the services they offer (at bookkeeping rates not accounting/tax rates) – but we’re a rare breed. From my research, bookkeeping rates vary between $50 – $80 per hour, depending on the experience / qualifications of the bookkeeper.

Hope this helps.