When do you pay GST as a subcontractor?

Hi everyone

I'm about to start a new job subcontracting to an RTO (delivering employment-related skills training) and was curious about GST.

I know that I can register for it voluntarily (and pay annually to the ATO) rather than a quarterly BAS statement, from what I understand reading the ATO website. Am also aware the threshold where this triggers ATO requirements to have been registered is $75,000 (based on a financial year? Or calendar year? Not sure about that but am thinking the latter).

My question - if I do charge GST and collect this from the RTO but don't hit the $75,000 threshold in 12 months, what happens to the GST? I still need to pay it to the ATO, correct? It doesn't just go into my pocket and I declare it as income for that period?

Apologies if this sounds like I have no idea what I'm talking about, but am trying to get my head around it.

Thank you!

 

You can only charge GST if you are registered for GST

 

Hi Terry

Thanks for the response - yes, when I was reading the ATO website, saw that I can only charge it if registered.

Was wondering though (assuming that I've gone through the process of registering for it and have that all set up) if I didn't actually hit the $75k threshold as anticipated, does any GST that I've charged and collected from the RTO I'll be subcontracting for within a 12 month period, does this still get paid to the ATO? Or are these monies treated in a different manner?

 

Your can't keep the GST, but have to remit it to the ATO, even if under the threshold.

 

And these questions are why I have concerns about contracting scams. A Fair Work Act concern. I will bet money the person applied for a "job" to be switched to contracting. The ATO even have a warning on the website when applying for a ABN about this.