Your GST Registration determines when you will need to report and pay the GST on your income and expenses.

Most small businesses register for GST on a cash basis. This means you report and pay your GST in the period the income and expense is receipted and paid.

For example: if you send an invoice or receive a bill dated 30th June but it is not paid until July, the GST is reported and paid in the July - September business activity statement.

This is the most practical for cashflow purposes as you have already received the GST component owing to the ATO.

Larger businesses with larger cashflow can report on an accruals (non-cash) basis. Reporting on an accruals basis means GST is reported and paid in the period it is invoiced.

For example: if you send an invoice or receive a bill dated 30th June, payment date is irrelevant. You will need to report and pay the GST in the April - June business activity statement even if the money has not been receipted or paid.

For more information, or further clarification, get in touch!