2. GST Flashcards
How to calculate the GST if the amount is inclusive?
1/11th or 0.0909
How to calculate the GST if the amount is exclusive?
10%
What is a GST Liability?
A liability to pay the ATO the GST component of a sale
What is an Input tax credit?
The GST component of a business’s purchases which can be claimed by the business against the GST liability
What does SCREIN stand for when working out if something is a taxable supply s. 9-5?
Supply Consideration Registered Enterprise Indirect tax zone Not GST-free or input taxed
What is the ITZ?
Indirect Tax Zone - defined under s. 195-1, Australia excluding the external territories where GST does not apply
If a business supplies something for under market value do they remit the collected GST or the market value GST to the ATO?
Under s. 72-70 if the associate os not registered for GST the market price must be paid.
If the associate is registered for GST it does not apply
What does CRAFT stand for when working out if a creditable acquisition was made s. 11-5 GST?
Consideration Registered Acquisition For a creditable purpose Taxable supply
What are the 6 common GST free supplies?
Food (fresh) Health Education Childcare Exports and other cross border supplies Supplies of going concerns
What are the three GST input taxed supplies (supplies which no GST liability arises but the supplier generally unable to claim input tax credits)
Financial supplies
Residential rent
Residential premises
What are the ‘8 GST special and other rules’?
GST groups Margin Scheme Second-hand goods Electronic distribution platforms and re-deliverers Reverse charges New residential premises Adjustment events Anti-avoidance
What is the threshold for GST registration?
75k for most taxpayers
150k for Non-Profit bodies
If less they can be registered
