| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052106953571
Date of advice: 17 April 2023
Ruling
Subject: GST - cancellation of registration
Question
Will the Commissioner cancel your goods and services tax (GST) registration effective from next year when you lodge your cancellation application?
Answer
Yes, the Commissioner will cancel your GST registration effective from next year when you lodge your cancellation application provided your actual annual GST turnover remained below the GST registration turnover threshold.
Relevant facts and circumstances
You re-registered for GST to report on non-cash basis of accounting for GST with annual tax periods.
You claimed the GST credits in relation to the exterior painting and maintenance works (project) you contracted to be carried out on your building. The project commenced and concluded in the same year.
The agreement you entered into allowed payment for the project to be made in four Instalments over a period of four years. The final payment was made last year.
In order to pay for the project, your levy collection was increased over the four-year period.
Your activity statement lodged for the last four years since you re-registered for GST showed that your total turnover was below the registration turnover threshold.
Your Annual General Meeting Minutes held last year showed that your projected levy collection will also be below the threshold.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 25-55
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
