NDIS GST for providers can be very unfair when your income is over the $75,000 per year. Businesses that deal directly with the public can effectively lose the GST component of their income once they exceed the GST registration limit. Many increase their prices, but some cannot.
However, in the case of NDIS services, it is possible that some of your income is actually GST- free because of the type of income. Essentially GST is not charged on some categories of income, like staple food eg fruit and veg, medical services and education. These defined income types have been excluded from GST in the GST legislation.
To determine if your income falls into one of these GST free categories, we would be grateful if you could please look at the information contained in the link below. Please look specifically at number 6 – Kinds of Supplies
If the services you provide are the same as those listed in the above legislation advises, your income will be GST- free. Please note that some of the services you provide might not be included in the supplies listed above. Those particular services, will need to have GST included. For some client GST is payable on some service sand not on others.
If you find that your income is all GST-free, you will still need to register for GST as your turnover has exceeded the GST threshold. There will be no GST on sales to declare that fall into the GST free category, but you will be able to claim all GST on expenses back.
NDIS GST can be complex for Service Providers
Please let us know if your income is listed as GST free or otherwise. It is important that your invoices and accounting system are set up correctly to account for this and to take advantage of any possible GST claims that you could make.
Please feel free to book a complimentary meeting with our NDIS specialist Accountant to discuss GST and your NDIS service.
