GST Registration GST Accounting Input Tax Credits Taxable Supply ...
GST GST Registration
o Non-charitable organisations with >$75,000 turnover must register o Charitable organisations with >$150,000 turnover must register o Other organisations may register
GST Accounting If turnover is less than $2m then entity may elect to use cash accounting, otherwise must use Non-Cash accounting.
Input Tax Credits
o To claim an input tax credit there must be a creditable acquisition o If there is a taxable supply, the GST is reduced by the ITC. If there is a GST Free supply, there will be a refund of the ITC. o The ITS is equal to the GST on taxable supplies acquired that were inputs to a taxable supply or GST Free supply o The ITC is reduced if the acquisition is only partly creditable o Must consider the extend of creditable purpose and consideration You make a creditable acquisition if: o You make an acquisition o You acquire the thing solely or partly for a creditable purpose (i.e. not for a private or input taxed purpose) o The supply of the thing to you is a taxable supply o You provide or are liable to provide consideration for the acquisition o You are registered or required to be registered
Taxable Supply Under section 9-5 you make a taxable supply if: o You make a supply o The supply is for consideration o The supply is made in the course or furtherance of an enterprise you carry on o The supply is connected with Australia o You are registered, or required to be registered o The supply is not GST-free or input taxed
GST-Free Supply Examples: o Basic food o Health o Education o Childcare o Exports o Religious services o Supplies of going concerns
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o o o o
Certain transport Inward duty free Cars for use by disabled people Water and sewerage
Input Taxed Supply
o Financial supplies o Loans, shares and derivatives o Residential rent o Rental of commercial premises is generally taxable o Sale of residential premises o Except for a first sale, which may be taxable
Taxable Importations o o o o o
Applies to goods – not services Entered for home consumption Made by the ‘owner’ Not importation of money Not a ‘non-taxable importation’ – includes supplies that would have been GST-free or input taxed
!"# = &'()* +, -'.'/(* 012+3-'-0+4 . 10% 8'()* +, -'.'/(* 012+3-'-0+4 = 9):-+1: &'()* + -3'4:2+3- '4< 04:)3'49* 9+:-: + 9):-+1: ?@A#?B !?AC = >?@A#?B @DE>FFG" HDEI GA"@E"?B − >E"# K?"F EH ?""F# Cost base (s.110-25): 1. Cost of acquisition o Where an asset is acquired at no cost (eg. A gift), then the market value at the time of acquisition becomes the deemed cost 2. Incidental costs incurred
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o Remuneration for the services of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant or legal adviser 3. Non-capital costs associated with owning an asset where the costs are not deductible, the asset was acquired on or after 21 August 1991 and the asset is not a personal-use or collectible asset: o Rates o Land taxes o Repairs o Insurance premiums o Non-deductible interest on borrowings to finance a loan used to acquire a CGT asset and on loans used to finance capital expenditure incurred to improve a CGT asset 4. Cost of enhancements and improvements 5. Title costs – capital costs of preserving or defending ownership of or rights to an asset (eg. A call paid on shares) Assets acquired after 7:30pm, 13 May 1997: o Cost base does not include any expenditure in the first, fourth or fifth element that the taxpayer has claimed a deduction for in any year or can still claim it because the period for amending the relevant assessment has not ended. o See page 137 TL&P
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o Non-charitable organisations with >$75,000 turnover must register o Charitable organisations with >$150,000 turnover must register o Other organisations may register
GST Accounting If turnover is less than $2m then entity may elect to use cash accounting, otherwise must use Non-Cash accounting.
Input Tax Credits
o To claim an input tax credit there must be a creditable acquisition o If there is a taxable supply, the GST is reduced by the ITC. If there is a GST Free supply, there will be a refund of the ITC. o The ITS is equal to the GST on taxable supplies acquired that were inputs to a taxable supply or GST Free supply o The ITC is reduced if the acquisition is only partly creditable o Must consider the extend of creditable purpose and consideration You make a creditable acquisition if: o You make an acquisition o You acquire the thing solely or partly for a creditable purpose (i.e. not for a private or input taxed purpose) o The supply of the thing to you is a taxable supply o You provide or are liable to provide consideration for the acquisition o You are registered or required to be registered
Taxable Supply Under section 9-5 you make a taxable supply if: o You make a supply o The supply is for consideration o The supply is made in the course or furtherance of an enterprise you carry on o The supply is connected with Australia o You are registered, or required to be registered o The supply is not GST-free or input taxed
GST-Free Supply Examples: o Basic food o Health o Education o Childcare o Exports o Religious services o Supplies of going concerns
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o o o o
Certain transport Inward duty free Cars for use by disabled people Water and sewerage
Input Taxed Supply
o Financial supplies o Loans, shares and derivatives o Residential rent o Rental of commercial premises is generally taxable o Sale of residential premises o Except for a first sale, which may be taxable
Taxable Importations o o o o o
Applies to goods – not services Entered for home consumption Made by the ‘owner’ Not importation of money Not a ‘non-taxable importation’ – includes supplies that would have been GST-free or input taxed
!"# = &'()* +, -'.'/(* 012+3-'-0+4 . 10% 8'()* +, -'.'/(* 012+3-'-0+4 = 9):-+1: &'()* + -3'4:2+3- '4< 04:)3'49* 9+:-: + 9):-+1: ?@A#?B !?AC = >?@A#?B @DE>FFG" HDEI GA"@E"?B − >E"# K?"F EH ?""F# Cost base (s.110-25): 1. Cost of acquisition o Where an asset is acquired at no cost (eg. A gift), then the market value at the time of acquisition becomes the deemed cost 2. Incidental costs incurred
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o Remuneration for the services of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant or legal adviser 3. Non-capital costs associated with owning an asset where the costs are not deductible, the asset was acquired on or after 21 August 1991 and the asset is not a personal-use or collectible asset: o Rates o Land taxes o Repairs o Insurance premiums o Non-deductible interest on borrowings to finance a loan used to acquire a CGT asset and on loans used to finance capital expenditure incurred to improve a CGT asset 4. Cost of enhancements and improvements 5. Title costs – capital costs of preserving or defending ownership of or rights to an asset (eg. A call paid on shares) Assets acquired after 7:30pm, 13 May 1997: o Cost base does not include any expenditure in the first, fourth or fifth element that the taxpayer has claimed a deduction for in any year or can still claim it because the period for amending the relevant assessment has not ended. o See page 137 TL&P
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