Private ruling: Goods and services tax (GST) and GST registration
Date of advice: 28 October 2016
Published: February 2017

Ruling: Q1: Are you required to be registered for GST? | A1: No.

Relevant facts and circumstances: You are not registered for GST. You, as an individual/sole trader, are carrying on an enterprise of providing specified services. You do not carry on any other enterprise in your capacity as a sole trader. Your income from providing the specified services as a sole trader is less than $75,000 a year. You are in partnership with Individual X, partnership Y, ABN Z, (the partnership). This partnership also carries on an enterprise of providing the specified services. The income of the partnership is less than $75,000 a year. The sum of the income from your enterprise and the partnership's enterprise is over $75,000 a year.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 23-5 | A New Tax System (Goods and Services Tax) Act 1999 paragraph 23-15(1)(b) | A New Tax System (Goods and Services Tax) Act 1999 Division 188

Reasons for decision: Summary: In accordance with section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), an entity is required to be registered for GST if: (a) the entity is carrying on an enterprise, and (b) the GST turnover of the entity is $75,000 or more. You, as an individual sole trader, are carrying on an enterprise of providing specified services. Therefore, you meet the requirement of paragraph 23-5(a) of the GST Act. You, as an individual sole trader, earn less than $75,000 a year from your enterprise activities. The income of the partnership is not included in the calculation of your turnover because the partnership is a separate entity to you. As your GST turnover, from your activities as a sole trader, is less than $75,000, you do not meet the requirement of paragraph 23-5(b) of the GST Act. Therefore, you are not required to be registered for GST.