Definitions
Activity statement
You use an activity statement to report your business tax entitlements and obligations, including GST, pay as you go instalments, pay as you go withholding and fringe benefits tax instalments.
Annual GST return
If you report GST annually, you use an annual GST return to report actual amounts for GST, wine equalisation tax (WET) and luxury car tax (LCT). If you use option 3 (paying quarterly instalments of GST and reporting annually), your annual GST return is also used to account for the difference between the total of your instalment amounts and your actual GST liability.
Associate
Includes people and entities closely associated with you, such as relatives, or closely connected companies or trusts. A partner in a partnership is an associate of the partnership.
Financial acquisitions threshold
If you make financial supplies without exceeding the financial acquisitions threshold (for example, your total sales include only a small amount of financial supplies), and you have a tax invoice, you may be able to claim GST credits for your purchases that relate to making those financial supplies.
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For more information, see GSTR 2003/9 Goods and services tax: financial acquisitions threshold.
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Financial supplies
A financial supply is the provision, acquisition or disposal of an interest in something specified in the GST law as being a financial supply. Provided certain requirements are met, examples of financial supplies include:
- the lending or borrowing of money
- the buying or selling of shares or other securities
- the creation, transfer, assignment or receipt of an interest in, or a right under, a superannuation fund, and
- the provision or receipt of credit under a hire purchase agreement if the credit is provided for a separate charge that is disclosed to the purchaser.
GST-free sales
A sale is GST-free if it is of a type specified in the law as GST-free. Examples of GST-free sales include:
- most health and education services
- eligible childcare services, and
- subject to exceptions, basic food.
Input taxed sales
A sale is input taxed if it is of a type specified in the law as input taxed. Two of the most common types of input taxed sales are:
- financial supplies, and
- supplies of certain residential premises by way of rent or sale.
Period of review
For tax periods that start on or after 1 July 2012 a four year period of review applies where we may amend an assessment. The period of review may be extended, or when an amendment is made it can be refreshed in respect of the amended particular for a further four years.
Taxable sales
You make a taxable sale if you're registered or required to be registered for GST and:
- you make the sale for consideration
- you make the sale in the course or furtherance of a business you carry on, and
- the sale is connected with Australia.
However, the sale is not taxable to the extent it is either GST-free or input taxed.
Last Modified: Friday, 26 October 2012