quick, basic GST question

[R377]

hi,

being self employed and owning 1 IP - trying to get another on a low-doc.

i thought you had register for GST if your business earned over 75k but ive been told that it is total earnings including your IP's ?

eg. i could declare 70k for business and then say 20k for rent received. But have been told it is the total together ??

 

[trajik]

It's only business income. Rent is input taxed and not included to for GST registration requirements.

 

[Propertunity]

being self employed and owning 1 IP - trying to get another on a low-doc.
i thought you had register for GST if your business earned over 75k

If you are trying for a low-doc you will need an ABN & GST registration otherwise without it you immediately look like your business does not even turn-over $75K, let alone your take home wages.

 

[TheShuffler]

um...trajik, can you explain rent being input taxed? My understanding is that it is not. GST is not charged nor is it remmitted on residential rent (holiday lettings etc excluded). any one else have a different view? cheers

 

[Propertunity]

can you explain rent being input taxed? My understanding is that it is not. GST is not charged nor is it remmitted on residential rent

It is the term "input taxed" that is confusing you.

For input taxed income/sales/supplies you have made, you do not charge GST but neither are you entitled to input tax credits for expenses or purchases required to make that income. Examples are financial supplies and business or individual owned residential rental income. Some examples: Interest received by business. Rent from business owned residential investment property. Rent from individual owned residential investment property for residential use.

 

[R377]

thanks for your reponse, i thought i would be ok. declare 70k - 10k for expenses and keep under the GST. the property i have and am looking at buying are approx "neutrally geared" so servicing the loan would not be seen as a problem.