GST Compliance Guide for Contractors in Australia and New Zealand

Why Tax Compliance Matters

Getting tax wrong can destroy your contracting business. Penalties, back-taxes, and audits are expensive.

This guide breaks down what you MUST know about GST in Australia and New Zealand.

Australia: GST (Goods and Services Tax)

Rate: 10% Registration threshold: $75,000 annual turnover Business number: ABN (Australian Business Number)

What You Need to Know

• Must register if you earn over $75k/year
• Voluntary registration allowed below threshold
• GST is included in your quote price
• Submit BAS (Business Activity Statement) quarterly or annually
• Claim GST credits on business purchases

Example Quote

Labor: $1,100 (inc GST)
Materials: $550 (inc GST)
Total: $1,650 (includes $150 GST)

Common mistake: Forgetting you owe the ATO that $150. Set it aside.

New Zealand: GST

Rate: 15% Registration threshold: $60,000 NZD annual turnover
Business number: IRD Number

Key Differences from Australia

• Higher rate (15% vs 10%)
• Lower threshold ($60k NZD vs $75k AUD)
• Same principle: GST is included in prices
• File GST returns monthly, 2-monthly, or 6-monthly

Common Mistakes

1. Not Separating GST Money

The trap: You collect $1,000 including $100 GST, spend all $1,000, can’t pay the tax office.

Solution: Use separate bank account or accounting software that tracks GST owed.

2. Wrong Registration Timing

The trap: You hit the threshold mid-year, don’t register, get penalized.

Solution: Track revenue monthly. Register BEFORE you hit the threshold if close.

3. Missing GST Credits

The trap: Pay GST on supplies but forget to claim it back.

Solution: Keep all receipts. Claim credits on legitimate business expenses.

4. Incorrect Invoice Format

The trap: Tax invoice missing required details (ABN/IRD, GST breakdown, etc.)

Solution: Use compliant invoice templates (JobbTrakr includes these).

How Software Helps

JobbTrakr handles tax automatically:

✅ Set your location → correct GST rate applied ✅ Professional invoices → compliant format for Australia or New Zealand
✅ GST tracking → see exactly how much you owe ✅ Expense claims → track GST credits ✅ Reports → export for your accountant

No more spreadsheet errors. No more compliance stress.

When to Get Professional Help

Consult an accountant if:

• You’re approaching registration thresholds
• You work across multiple countries/states
• You have employees (payroll tax is different)
• You’re unsure about deductions
• You receive an audit notice

Quick Reference Table

Country	Tax Type	Rate	Threshold	Shown Separately?
Australia	GST	10%	$75k AUD	No (included)
New Zealand	GST	15%	$60k NZD	No (included)

Action Steps

1. Check your annual revenue (or projected revenue)
2. Calculate distance to threshold in your country
3. Register if required (or voluntarily if beneficial)
4. Set up proper invoicing with correct tax display
5. Track tax collected separately from income
6. File on time (penalties are steep)

Stay compliant. Sleep better.

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