GST and Business Registration

Question 1

What is GST

Answer 1

Goods and services Tax applied to most imported Goods and services in Australia. Usually 10%

Question 2

When should a business apply to register fro GST

Answer 2

• A business that has an annual sales of $75,000 or more must register with the Australian Taxation Office to collect GST and must charge GSt unless the products are GST exempted

Question 3

What is an ABN

Answer 3

An ABN is an 11 digit numebr issued to a business and help Australian Taxation Office ensure that businesses pay the corrects amount of tax

Question 4

How ofteen should GST be paid

Answer 4

GST is paid to the ATO on either a monthly or quartly basis

Question 5

What re some GST exempted products

Answer 5

Two types of products which are GST exemp:
- GST free supplies
- Input tax supplies

Question 6

GST free supplies

Answer 6

• Fresh food
• Medical services
• Education
• Childcare
• Exports

Question 7

Input Tax supplies

Answer 7

Products that GST is not charges and not possible to claim a GST input tax credit for the purchase of goods and services associated with these products
- Renting a house
- Services provided by a bank (bank loan)

Question 8

When should a business register for a business name?

Answer 8

• If business name consits of the owner’s name and one more word
  eg. Stephanie Brown lawyers

Question 9

When is a busines not required to register for a business name?

Answer 9

• If business only consists of the owner’s name eg Stephanie Brown
• When business name is similar to another biusiness

Question 10

When should a business name be re- registered?

Answer 10

• Every 3 years, a fee is charged

Question 11

What is bankruptcy?

Answer 11

When a person can’t pay off their debts when they are due.
- Can last for 3 years
- Once bankrupt most of their assets will be sold to repay their debts

Question 12

Define Voluntary bankruptcy?

Question 13

Define Involuntary bankruptcy?