Tax Issues - Australia Only

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Selling Cameras and Equipment

Do I have to pay GST?

The short answer is probably yes.

GST is payable on any transaction in Australia that has to do with your business. If you purchased the equipment from a retailer, you probably claimed the GST input tax credit. Similarly, when you sell the equipment, you are required to pay 1/11 of the sale price in GST.

Not Registered For GST?

There are some exceptions to this rule, the first one being that you have to be registered to pay GST.

If your business turnover (total sales) is under $75,000 (excluding GST), you are not required to be registered for GST. You can opt out of the system. Of course, being not registered also means you can’t claim GST input tax credits when you buy equipment either.

If you have opted out of the GST system, then you wouldn’t have to pay GST when you sell your cameras or equipment.

Whether you paid GST when you bought the equipment, or whether you were registered for GST when you purchased the equipment has nothing to do with your position when you sell the equipment. Your obligation to pay GST when you sell the equipment is determined by whether or not you are registered for GST at that time.

If you think you might deregister yourself before you sell your equipment to avoid paying the GST, this may work in some situations, but there are some special rules that can catch you, especially for equipment that has been purchased recently.

I Didn’t Charge GST...

If you forget to add 10% GST onto the equipment sale price, bad luck! The tax office doesn’t care, it just wants 1/11 of whatever the sale price was. And whether the equipment is new or secondhand is not an issue either. I

Am Sending The Equipment Overseas...

If you sell your equipment to an overseas purchaser, then there is no GST payable as it is con sidered an export supply. There is a requirement that you actually send the equipment overseas within 60 days.

If you are selling the equipment to someone in Australia, and that person tells you they are taking the equipment overseas, then there is usually a whole lot of paperwork you have to go through that proves the person to whom you sold your equipment actually took the equipment out of the county.

This is general information only. We do not know your specific financial or legal situation and we are not providing you with advice. As such, this article should not be relied upon as legal, financial or accounting advice. Please use this article as a conversation starter with your own adviser.

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