Annual GST reporting
You can elect to report GST annually if:
- you are not required to register for GST
- you have not elected to pay GST by instalments.
If you are using the deferred GST scheme you need to withdraw from the scheme.
If you are a representative member of a GST group, you can elect to report GST annually only if each member of the group is eligible. Once an election is made, annual tax periods will apply to all group members.
Follow the links below for more information about:
Reporting other tax obligations annually
If you elect to report GST annually and you report wine equalisation tax (WET) or luxury car tax (LCT), you will also report these obligations annually. This is because calculations for WET and LCT must be included with the GST calculation.
If you have other tax obligations, such as pay as you go (PAYG) withholding for employees, you will need to continue to lodge a business activity statement either monthly or quarterly showing these amounts.
How to elect to report GST annually
You can elect to report GST annually by contacting us.
If you phone, have your ABN and either your TFN or activity statement document ID number (from the top right corner of the first page) on hand.
If you write, ensure your application is signed and contains your business’s name, ABN, a brief reason for your request and the date from which you would like your election to take effect.
When you can make your election
You have a limited period of time at the beginning of each financial year to elect to report annually. You can elect between 1 July and:
- 21 August – if you currently report GST monthly
- 28 October – if you currently report GST quarterly.
There are exceptions if you:
- have only been registered for GST for six months or less
- only became eligible for annual reporting after 28 October in the relevant financial year.
In both cases, you have until the first day you are required to lodge a GST return after you became eligible for annual reporting to make an election to report annually.
When your election takes effect
Your election will take effect from the start of the earliest tax period for which your activity statement is not yet due.
For example, if you report GST monthly and make your election by 21 August, your election will take effect from 1 July of the year in which you elect (because your activity statement for July is not due until 21 August).
Similarly, if you report GST quarterly and make your election by 28 October (the day your quarterly statement is due), your election will take effect from 1 July of the year in which you elect.
Earlier start dates
You may apply for your election to take effect from an earlier date. Your application must be in writing, signed, contain your business name, ABN, a brief reason for your request and the date from which you would like your election to take effect.
The date you choose must be the first day of a tax period that applies to you. Such applications will only be approved in exceptional circumstances.
Check your eligibility each year
Once you have elected to report GST annually, you do not need to re-elect each year. However, at the end of each financial year you must check that you are still eligible to report annually the following year.
Good business records will help you obtain an accurate picture of your business and its turnover, and therefore whether or not you have to register for GST (which would make you ineligible for reporting annually).
When your election ceases to have effect
Your election to report GST annually will cease to have effect if any of the following scenarios apply:
- Your GST registration is cancelled.
- The Commissioner disallows your election – if you fail to comply with any of your tax obligations, your election may be disallowed at any time.
- You become bankrupt, go into liquidation or receivership. The tax period will end the day before such an event.
- You determine as at 31 July that your projected annual turnover will reach or exceed the registration turnover threshold. You need to let us know if this is the case so we can send you the correct business activity statements.
- You revoke your election. If you change your GST reporting period to monthly or quarterly on or before 28 October, your election will cease to have effect from the previous 1 July. If you revoke your election after 28 October, it will cease to have effect from the following 1 July.
- There is a change in membership of a GST group of which you are a member. The election to report GST annually, and the annual tax period that applies, ends the day the membership changes. All members of the group revert to their previous tax reporting period, either monthly or quarterly.
When to lodge your annual GST return
We will send you an annual GST return in July. The first return will be for the period from the date your election took effect to 30 June. Thereafter it will relate to the period 1 July to 30 June.
You must report and pay your GST, WET and/or LCT amounts (if applicable) for this tax period when you lodge your annual GST return.
The date for lodgment of your annual GST return and payment of any amounts is either:
- the date for lodgment of your income tax return
- 28 February following the annual tax period, if you are not required to lodge an income tax return.
Making early payments
You can make voluntary (early) payments to offset your future tax liability at any time using any of the following methods:
If you are voluntarily registered for GST and you have not made an election to pay GST by instalments, you can choose to report and pay annually. There is only a limited period each year you can make this choice. Reporting GST annually will affect your reporting obligations for WET and LCT.
- Direct credit or BPAY® using your electronic funds transfer (EFT) code. Your EFT code is shown above the barcode on your payment advice form and is also provided in the internet-based electronic commerce system. If you don’t have an EFT code, you can obtain one by phoning us on 1800 815 886.
- Mail, or at Australia Post, using your personalised payment advice forms. You can order a booklet of personalised payment advice forms by phoning our business direct self-help service on 13 72 26 and pressing 4 for payment forms, then 2 to request personalised payment advice forms. These payment advice forms can be used only for activity statement obligations.