GST and financial supplies - claiming reduced GST credits

Do you need to register for GST?

If you carry on a business, you must register for GST if your GST turnover is $75,000 or more.

Most SMSFs do not have to register for GST because:

• SMSFs mainly make input taxed sales
• you do not count input taxed sales that you make towards your GST turnover.

Two common types of input taxed sales are:

• financial supplies
• supplies of residential premises by way of rent or sale.

However you may choose to voluntarily register for GST. In deciding whether to register, we recommend you consider:

• any increases in time or costs for record keeping and reporting
• the fact that GST applies to taxable sales and you could claim GST credits for creditable purchases
• whether you can claim reduced GST credits on your reduced credit acquisitions.

For more information on registering for GST and working out your GST turnover, refer to GST for small business (NAT 3014).