The Law Handbook 2024

406 Section 5: Managing your money amounts to the ATO. On the other hand, you are entitled to a refund from the ATO where your GST liability is less than your input tax credit entitlements. Australian Business Number The Australian Business Number ( ABN ) is intended to be the single identifier for businesses when dealing with government departments and agencies. It is also necessary for businesses to have an ABN in order to participate in the GST system. You are entitled to an ABN if you are a company registered under the Corporations Act 2001 (Cth) or an entity carrying on an enterprise in Australia. This includes individuals running businesses, charities and religious institutions. You will not be entitled to an ABN as an employee, or if you are a hobbyist or conduct activities without reasonable expectation of profit. To apply for an ABN, fill in a form (available from the ATO, post offices and banks). Alternatively, you can register online at www.abr.gov.au. Registration for the GST To make a taxable supply, and to be reimbursed for GST you have paid on your business inputs, you need to be registered for GST purposes. You must be registered if: • you are carrying on an enterprise (that is, you are not merely engaged in a hobby or are an employee of the enterprise); and • your annual turnover is, or is forecasted to be, $75000 or more (or $150000 if your organisation is not-for-profit). If your annual turnover is less than these amounts but you are carrying on an enterprise, you can choose whether to register for GST or not. You need an ABN to register for GST. You can register for GST online via the business portal, by phoning 13 28 66, or through your registered tax agent or BAS agent. Where GST does not apply Two types of supplies do not attract GST. 1 GST-free supplies: Examples of GST-free supplies include the supply of food, medical services, education, child care and exports. GST is not payable on GST-free supplies. However, suppliers will be entitled to an input tax credit for acquisitions relating to those supplies. 2 Input taxed supplies: The two broad categories of input taxed supplies are financial services and supplies of residential premises. Where a supply is input taxed, no GST is payable on it. This means that landlords do not charge GST on rent of private houses or apartments (although rent may increase because of the GST imposed on other costs relating to the premises). Where you acquire goods or services that relate to the provision of input taxed supplies, you are generally not entitled to input tax credits on those acquisitions. State duties and taxes Introduction Duties and taxes imposed by the Victorian Government are administered by the State Revenue Office Victoria. Many of these have been abolished as a result of the introduction of the GST. Further information on each can be obtained from the State Revenue Office Victoria (see ‘Contacts’ at the end of this chapter). NOTE Payroll tax and other business taxes, and related expenses, are deductible from assessable income for income tax purposes, if you can establish a link between the expenses and your income-producing activities. Payroll tax Payroll tax is payable under the Payroll Tax Act 2007 (Vic). It is paid by employers on their employees’ remuneration, whether in cash or otherwise, where the employer’s total wage bill exceeds a threshold amount. Related employers may be ‘grouped’ so that the total wage bill exceeds the threshold even if it does not on an individual basis. In certain cases, wages will be exempt from payroll tax (e.g. where the employee of a charity is engaged in charitable activities). Stamp duty The Duties Act 2000 (Vic) imposes duty on certain types of transactions. This Act remains a complex area of law and is not dealt with at length here. Certain types of agreements cannot be enforced unless they are put into writing and stamp duty is paid. Although the rate of duty is often low, the total