Can you explain a bit more about claiming GST if you work as contractor and have ABN?

Question

in your tax return at the end of the finantial year.

Answer 1

Buddy you need the ATO web site not YA's :)

www.ato.gov.au

Answer 2

If you think that by "claiming" GST, that the Government refunds it to you... that's not how the system works.

When you put in your quarterly BAS statement (presuming you're a self-employed contractor), you lodge claimable information -- such as depreciation on equipment, operating expenses (ie business phone or computer), etc.  There is also an area where you fill in the GST (ie the amount of GST you've paid on items, as well as the amount of GST you've invoiced to your "client").

But as previously pointed out by others, you really need to speak to a Tax Specialist to get all the facts.  Taxation is one of those murky areas of Government that no one really understands -- and business taxation is even murkier than personal tax.

Answer 3

Go to the Australian tax office website

http://ato.gov.au/businesses/pathway.asp...

Answer 4

best to ask a qualified Tax Accountant to get detailed, CORRECT information.........i see you've asked at LEAST 3 different tax questions.

Answer 5

You work for someone and charge them $100 + 10% GST = they pay you $110 .

You spend $40 + 10% GST on "eligible" expenses = you pay out $44

You give the difference of the $10 GST you collected less the $4 GST you paid, and give the remaining $6 to the Tax Office.

A GST return is normally done every three months, but in some cases it can be annual.

I used to charge $110 for advice, but I am no longer GST registered, so you only owe me $100 now :) :)

Answer 6

You can only claim GST on items you have bought to help your work.

This includes stationery, phone calls, work clothes (only if they have a work logo on them),materials you buy to help you provide your merchandise or service, such as business cards, tools such as spanners if you are a plumber, or computer discs if you create websites for people.

You have to PROVE it's all for business, and you must attach your receipts, so you can't just make up numbers.

A plumber can claim for spanners, but a tailor can't claim for spanners... and a plumber cannot claim for needles and thread. Each tradesperson must claim for relevant stuff they have actually gone out and bought, or used (like the phone) for their business.

Having an ABN in itself is not a magic thing - you have to use it appropriately. I have an artist's ABN. That is, I can only use it when galleries ask me to provide stuff, and so that when I win competitions, I do not have to pay tax on what I win. So I can't use it to claim the GST portion on my groceries or my new fridge. And neither can you.

But if you are a provider of cakes to cafes, and you bake from home, and you have an ABN for your cake-baking business, then you could claim a portion of the GST. Why a portion only? Because if you live where you work, some of that fridge is used as a normal, non-business fridge.

Hope this helps.