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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3012
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Is GST payable on Income or Profits from business only

Customer Question

Is GST payable on Income or Profits from business only
Submitted: 4 months ago.
Category: Tax
Expert:  Barbara replied 4 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The goods and services you sell in Australia are taxable unless they are GST-free or input taxed.

Most basic foods, some education courses and some medical, health and care products and services are exempt from GST.

Things that are GST-free include:

  • most basic food
  • some education courses, course materials and related excursions or field trips
  • some medical, health and care services
  • some medical aids and appliances
  • some medicines
  • some childcare services
  • some religious services and charitable activities
  • supplies of accommodation and meals to residents of retirement villages by certain operators
  • cars for disabled people to use, as long as certain requirements are met
  • water, sewerage and drainage
  • international transport and related matters
  • precious metals
  • sales through duty-free shops
  • grants of land by government
  • farmland
  • international mail
  • exports
  • sales of businesses as going concerns
  • some telecommunications supplies
  • eligible emissions units.

Input-taxed sales are sales of goods and services that don't include GST in the price. You can't claim GST credits for the GST included in the price of your 'inputs'.

The most common input-taxed sales are financial supplies (such as lending money or the provision of credit for a fee) and selling or renting out residential premises.

The following link contains excellent information you will find helpful:

https://www.ato.gov.au/Business/GST/When-to-charge-GST-(and-when-not-to)/

Please let me know if I can assist you further.

Thank you and best regards,

Barb