Register and Cancel GST

GST Registration

The ATO (Australian Taxation Office) has classified bodies corporate / strata plans as ‘not-for-profit’ entities as income is not expected to be distributed to Owner's. This means the GST registration threshold for strata property is considered when the GST turnover exceeds $150,000.

Registering for GST with the ATO can be completed online, by phone or through a registered agent.  This can be done when the business is first registered or when the threshold is exceeded.  Registration must be completed within 21 days from when the GST turnover exceeds the relevant threshold.

The GST turnover threshold is reached if:

• the 'current GST turnover' (turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 or more for non-profit organisations)

GST turnover is the gross business income (not profit), excluding:

• GST included in sales
• sales that aren't for payment and aren't taxable
• sales not connected with the business
• input-taxed sales you make

Register Building for GST

The instructions below will setup the selected Building, to start calculating GST on applicable transactions. Consideration on the timing of setup may vary based on the scenarios below:

• Already registered - new or existing building, (setup as part of the new building process), when entering Building Information. 
• Registered with a start date in the future (setup on or just after the date has passed).

1. Search or select Building Information. 
2. Locate the Registered for BAS / IAS (GST) field and tick to set the registration.
3. Select which tax type to register for - GST / PAYI / PAYW and the appropriate frequency
4. Complete the required fields for the applicable tax type selected.
5. Click Save and then Close.

If this is an existing building, Opening balance (Financial's) entries should be processed after the setup of Building Information, using Opening Balance Setup, as these specific transactions will NOT create GST transactions.

Adjusting GST on Prior Transactions

If the setup for the GST is completed and previously created transactions created in StrataMax are required to be adjusted, (usually due to missing the setup at the right time) either to add / remove GST amounts, this is to be completed with Edit Tax Code.  

GST Cancellation

You can choose to cancel your GST registration if your GST turnover is below the threshold for compulsory registration as noted above.  The date you choose to cancel your GST registration should be the last day you want to be registered, often the last day of the current reporting period.

Select to cancel your GST registration from the date you choose, however you can't:

• cancel your registration retrospectively if you were still operating on a GST-registered basis after the date you chose.
• choose a cancellation date and then continue to operate on a GST-registered basis after that date.

GST registration can be cancelled, along with other registrations, (ABN / PAYG / etc together or separately or also required) by:

• using through the Business Portal
• by phone on 13 28 66 – between 8.00am and 6.00pm, Monday to Friday
• by completing the Application to cancel registration (NAT 2955) through online ordering and posting it to the ATO.

Cancel Building for GST

Once cancellation has be lodged / confirmed with the ATO, make a note to complete the following steps on the cancellation date or as soon after as practical.

If the date of cancellation was in the past, ensure that transactions dated after the cancellation date have the tax code amended in the BAS. This will need to be completed PRIOR to the updating of the Registered for BAS / IAS (GST) field in the Building Information. It is recommended that the final BAS and financial statements are checked, printed/saved prior to amending the GST registered setting to N. 

Steps for cancellation:

1. Ensure that cancellation date is today or very recently in the past.
2. Check the current period BAS and determine any amounts that are to be removed if after cancellation date  Edit the tax code to align the correct transactions for the final reporting period.
3. Check Levy Management for Levy Periods which may have generated GST and need to be amended.
4. Check BAS for current period reconciles with the GST Clearing Account and expected total after above amendments.
5. Enter manual Creditor Invoices to ATO Creditor account / GST Clearing Account for final BAS payment / refund (whole dollars only) if the final reporting is in the middle of a reporting period or finalise the BAS.
6. Enter journal to GST Clearing Account and income / expense account to balance for rounding - ensuring balance sheet account is $0.00.
7. Amend Registered for GST / IAS (BAS) in Building Information for GST Tax to 'Not Registered' and save.
8. Lodge final BAS with ATO and make payment if required.  If refundable, once refund is received allocate to ATO Creditor once received into the Bank Account.