GST Deferral

If you’re not already taking advantage of the ATO’s Deferred GST Scheme, it’s time to talk to your accountant or tax advisor.

The Deferred GST scheme allows eligible participants to defer payment of GST until their next Business Activity Statement (BAS) is due.

This means you can start selling or using the imports in your business right away, and the import GST otherwise payable at the time of cargo arrival is deferred until the 21st of the following month.

Who is eligible to defer GST?

Importers are eligible to defer GST if they:

  • Have an Australian Business Number
  • Are registered for GST
  • Lodge their BAS monthly
  • Pay their BAS liabilities electronically
  • Do not have any outstanding debts with the ATO

How does it work?

Once you have changed your electronic GST reporting from quarterly to monthly and received approval in writing from the ATO.

  • The Australian Border Force will advise the ATO of the total deferred GST liability at the end of each month
  • The ATO will include the amount of deferred GST on the BAS and included in the calculation of net liability for the month
  • The BAS must be lodged and payable within 21 days of the end of the month

What are the merits of the Deferred GST Scheme?

It is timely once again to consider the merits of the Deferred GST Scheme.

  • Improved cashflow, providing an opportunity to sell your products with GST to your customers, and then offset the collected GST against the owing GST, overall reducing your GST payments
  • Saving time, so you won’t have to pay GST on arrival of your goods, allowing you to settle other payments quicker such as port charges and sea freight charges
  • Faster access to GST refunds, as GST monthly reporting will provide you quicker access to any GST refunds you are entitled to

We strongly recommend that clients not already on the scheme consider registering now. The ATO has confirmed registration and deferred GST status can be in place and ready for use within 3-4 business days of lodging the application.

More information about the deferred GST scheme can be found HERE.

If you have any questions, please don’t hesitate to contact your local FJT office.

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