GST, or Goods and Services Tax, is a consumption tax charged to most goods and services in Australia. The Australian Tax Office (ATO) administers the GST, and it is payable by businesses and individuals. For those earning a low income, however, the question of whether or not they have to pay GST can be confusing. In this article, we’ll take a look at the rules for GST for low income earners.
GST for Low Income Earners
For those earning under $75,000 a year, the GST does not need to be paid. This is because the ATO has set a threshold of $75,000 for GST registration. This means that if you earn under this amount, you do not need to register for GST, and you can continue to trade without paying GST on your goods and services.
However, it’s important to note that if you exceed the $75,000 threshold, you will need to register for GST and start paying GST on your sales.
How Much Do You Have to Pay?
For those earning under $75,000, the amount of GST payable depends on the type of goods or services you are selling. Generally, GST is payable on most goods and services, with some exceptions. For example, GST is not payable on educational courses, healthcare services, childcare services, and some other services.
It’s also important to note that you may be eligible for GST credits. This means that you may be able to claim back some of the GST you have already paid. For example, if you purchase goods or services from a registered GST business, you may be eligible for a GST credit.
Finally, it’s important to remember that GST is not the same as income tax. GST is a tax on the sale of goods and services, while income tax is a tax on your income.
In summary, for those earning under $75,000 a year, the GST does not need to be paid. However, it’s important to remember that if you exceed the $75,000 threshold, you will need to register for GST and start paying GST on your sales. The amount of GST payable depends on the type of goods or services you are selling, and you may be eligible for GST credits. It’s also important to remember that GST is not the same as income tax.
