GST Registration MYTH

I received this email from a client…. and thought it would be good for the WHAT THE…. category.

MYTH:

“I have a regular sub-contractor, that claims that despite having his GST registration on the ATO ABR website, that he doesn’t have to charge GST if his earnings are less than a certain dollar amount.”

FACT:

If you are GST registered then despite your earnings you need to account for the GST. What the sub-contractor may be thinking is, if your income is less than 75K then you dont need to be GST registered and thus dont need to account for GST.