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When to charge GST

If your small business is registered for GST (Goods & Services Tax), most of your sales in Australia will include GST.

Sales which include GST (taxable sales) are:
– made for payment (monetary or other)
– made in the course of operating your business (including any capital assets sold)
– connected with Australia

For these taxable sales, the business must:
– include GST in the price
– issue a tax invoice to the buyer
– pay the GST it’s collected when it lodges its activity statement

When not to charge GST
A business does not include GST in the price of goods and services that are:
– GST free – such as most basic foods, some education courses and healthcare products and services
– Input taxed – such as lending money and renting out residential premises.

Claiming GST credits
You can claim a credit for any GST included in the price of goods and services that you purchase for your business and use to make either taxable or GST-free sales. This is called a GST credit. You can’t claim a GST credit for the GST included in the price of purchases you use to make your input taxed sales.

Posted on 6 December '16 by , under Tax.

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Superfund categories and what they mean

There are four different categories of super funds. These have different primary features and are more applicable to certain people than they are to others.

Retail super funds

Anyone can join retail funds. They are mostly run by banks and investment companies:

  • Allow for a wide range of investment options.
  • Financial advisors may recommend this type of fund as they receive commissions or might get paid fees for them.
  • Although they usually range from medium to high cost, there may be low-cost alternatives.
  • The companies that own these funds will aim to keep some of the profit they yield

Industry super funds

Anyone can join bigger industry funds, but smaller ones may only be open to people in certain industries i.e. health.

  • Most are accumulation funds but some older ones may have defined benefit members
  • Range from low to medium cost
  • Not-for-profit, so all profits are put back into the fund

Public sector super funds

Only available for government employees

  • Employers contribute more than the 9.5% minimum
  • Modest range of investment choices
  • Newer members are usually in an accumulation fund, but many of the long-term members have defined benefits
  • Low fees
  • Profits are put back into the fund

Corporate super funds

Arranged by employers for employees. Large companies may operate corporate funds under the board of trustees. Some corporate funds are operated by retail or industry funds, but availability is restricted to employees

  • If managed by bigger fund, wide range of investment options
  • Older funds have defined benefits, but most are accumulation funds
  • Low to medium costs for large employers, could be high cost for small employers

Self-managed super funds

Private super fund you manage yourself. Many more nuances to this type of fund. Most prominent feature is the autonomy over investment.

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