Ignoring GST Requirements

Businesses registered for GST must track and report GST on income and expenses accurately. Mistakes can lead to underpayment, overpayment, or ATO penalties.

GST Mistakes We Commonly See:
– Applying GST to GST-free sales (e.g. exports or health services)
– Forgetting to claim input tax credits on valid purchases
– Not adjusting for private use of business items
– Incorrect reporting basis (cash vs accrual)

What the ATO Expects:
– Clear tax invoice records
– Correct use of GST codes in software
– Accurate BAS lodgement each quarter

Tip: Use class tracking or separate tracking codes to clearly segment GST versus non-GST transactions.

Late or Missed Super Payments

Superannuation must be paid by the quarterly ATO deadlines. Missing these dates results in the Super Guarantee Charge, which includes interest and administrative penalties.

Super Must Be:
– Paid to the employee’s nominated fund
– Lodged through a clearing house
– Paid on ordinary time earnings
– Reported in STP with each pay cycle