Home – New Forums Money matters Calculating projected turnover and GST registration

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  • #969124
    Urchin
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    I’m currently not GST registered and I’d prefer not to register for the moment but I’m concerned that I’m nearing the GST registration threshold of 75k projected turnover.

    The turnover from my previous 11 months+current month is less than the threshold but my current monthly turnover is close to 75k/12 and possibly above it in months with an unusually large sale. I suspect I may go over the threshold in the next 11 months if I continue to grow but can’t be sure.

    My question is, how do you calculate projected turnover?
    or more importantly how does the tax office consider it?
    I don’t want to run into trouble in future when I exceed the threshold.

    As I’m uncertain of my future turnover, if I don’t register until my current turnover + previous 11 months > 75k will this be ok?

    #1037002
    Jake@EmroyPrint
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    It seems like your nudging pretty close to the threshold, there aren’t really any drawbacks with registering and you get to claim GST on purchases.

    My suggestion is to register + put the GST money you make into a high interest account until tax time.

    – Jake

    #1037003
    Alan Maddick
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    Hi,

    Is your business Business to Business or Business to Consumer?

    #1037004
    Urchin
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    Thanks Jake for your comments. I hadn’t considered the little bonus I can get from interest.

    I’m 80% business to business. I hope adding GST to my prices will not put too many people off. Do most businesses really not care about the GST price?
    Having never been a GST registered business myself, I do care about the GST amount greatly, it makes things 10% more expensive and I can’t claim it back.

    #1037005
    Jake@EmroyPrint
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    To be honest with you, it doesn’t really bother me.

    Most of my suppliers charge GST, but some don’t (I like to work with Smaller Business owners / soloists where I can ;)).

    It doesn’t bother me either way, because if they do charge GST, I just claim it back anyway and if they don’t, it’s not a huge deal.

    – Jake

    #1037006
    ray_223
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    If you’re close to the limit now – and expect to grow at all in the future – then register for GST ASAP.

    #1037007
    CruzAccountant
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    Hi

    The onus sits with you. If you feel like you’re hitting the $75k mark, then it’s up to you to register. If you were under the $75k mark for FY2010 (which you say you are), then just leave things the way they are. When you’re 9 months into FY2011 and feel like you’ll be hitting $75k before June 2011, then register then.

    I like Jake’s idea of putting the money aside anyway, in case you need to pay the GST. You can also offset your taxable purchases against your income anyway.

    Also, you may be able to lodge your GST return annually, which will mean that the GST liability will be due when your FY2011 tax return is due.

    #1037008
    Alan Maddick
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    Hi,

    If you are mainly Business to Business you have nothing to lose by registering for and charging for GST (other than paperwork headaches) your business clients will claim back the GST so they will only care about your net price.

    Once registered you will be able to claim back any GST paid (benefit to you)

    I would definetly be looking at registering especially as you are close to the threshold, go and see your Accountant, talk it through and discuss record keeping at the same time as the record keeping burden tends to increase once registered.

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