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Chippy rain
  • Total posts: 15
KarenC, post: 206881 wrote:
Hi – you do not put aside or pay GST unless you are registered for it.
That means your invoice must say no GST. Currently, If you turn over $75000 gross you have to register for and pay GST. In your case this does not apply.

It is a good idea for you to have a separate savings account to ‘pay your prospective tax into’. If you end up not needing it at tax time, then you can save, spend or re-invest it into the business. If you have to pay tax, then you will have the funds.

As a sole trader ALL income is put together for tax. Eg you might earn $48,000 as an employee for someone else and $22,000 as a solo. Put them together and work out the tax on the total minus any bonafide expenses. However, if you earn less than $20,000 currently solo, you won’t be able to claim business expenses this financial year – but they can be carried forward. This is why it’s good to have a good accountant right from the beginning for tax.

I am not an accountant – so you should get professional advice or check with the ATO at http://www.ato.gov.au

All the best.

Thanks for the input Karen. I am registered for GST though as I plan on making over $75000 gross. So what do I do. Take The GST off the whole $7000 I made or just materials?