Hi, I started my own marketing consultancy business 2 years ago and have a question about GST. Are you required to pay GST when your turnover reaches $75,000 or is turnover less expenses?

Hi Maile,

Turnover is you total incomes before expenses. Further, it is not once you have reached $75k, but when you expects your annualised turnover to reach/exceed $75k.

If you are a marketing consultant, i'd suggest being registered for GST regardless, as the GST is claimed back by the businesses you work for (generally) and you can claim the GST back on your expenses.

Gross Turnover.

It makes no difference what the expenses are.

Also the requirement to register goes along these lines:

As soon as you are reasonably confident that your turnover is GOING TO exceed $75k, you need to register for GST

eg

If you turn over $15k per month, you cannot wait until you have traded for 5 months and then register for GST.

cheers
bc