Australia GST
Contents
Question one
What is an enterprise under Australia legislation?
Under section 9-20, an enterprise could be done by any activities from any form of entities with or without commercial purposes. In this case, Phil and Ina manage the farm to sold wool and supply grapes to winery in considerations, is an activities done by entities under GST legislation, these activities constitute an enterprise.
Do Phil and Ina have to register for GST? What advice would you provide to them in relation to registration?
Phil and Ina may need to be registered, although the grapes is food which is GST-free, but wool products are taxable which make them have taxable supplies, and according to the Act99, s23.15, soon as the annual turnover which only contains the wool, is excessed 50,000 (or 75,000 by ATO), they have to be registered.
To work out the annual turnover, only taxable supplies included GST-free or input-tax supplies are not count into the turnover. And there are two way to calculate your annual turnover, actual basis and project GST turnover. In working out your projected GST turnover, don't include amounts you receive for the sale of a business asset (such as the sale of a capital asset) or for any sale you made, or are likely to make, solely as a consequence of ceasing or substantially and permanently reducing the size of your business.
If Phil and Ina are not carrying any enterprise anymore, then they have to chancel the GST registration right after the enterprise activities closed in 21 days. The date of effect of cancellation will decide by the commissioner under s25. Will the supplies make constitute taxable supplies?
During Phil and Ina farm business, the selling the grape is considering as GST-free supply and taxable supply on wool products for it meets the taxable supplies criteria. There are three basic types of supplies in Australia which are taxable supplies, GST-free supplies and input-taxed
Question one
What is an enterprise under Australia legislation?
Under section 9-20, an enterprise could be done by any activities from any form of entities with or without commercial purposes. In this case, Phil and Ina manage the farm to sold wool and supply grapes to winery in considerations, is an activities done by entities under GST legislation, these activities constitute an enterprise.
Do Phil and Ina have to register for GST? What advice would you provide to them in relation to registration?
Phil and Ina may need to be registered, although the grapes is food which is GST-free, but wool products are taxable which make them have taxable supplies, and according to the Act99, s23.15, soon as the annual turnover which only contains the wool, is excessed 50,000 (or 75,000 by ATO), they have to be registered.
To work out the annual turnover, only taxable supplies included GST-free or input-tax supplies are not count into the turnover. And there are two way to calculate your annual turnover, actual basis and project GST turnover. In working out your projected GST turnover, don't include amounts you receive for the sale of a business asset (such as the sale of a capital asset) or for any sale you made, or are likely to make, solely as a consequence of ceasing or substantially and permanently reducing the size of your business.
If Phil and Ina are not carrying any enterprise anymore, then they have to chancel the GST registration right after the enterprise activities closed in 21 days. The date of effect of cancellation will decide by the commissioner under s25. Will the supplies make constitute taxable supplies?
During Phil and Ina farm business, the selling the grape is considering as GST-free supply and taxable supply on wool products for it meets the taxable supplies criteria. There are three basic types of supplies in Australia which are taxable supplies, GST-free supplies and input-taxed