GST and BAS for Pet Businesses: What You Need to Know
Understanding your tax obligations isn't the most exciting part of running a pet business. But getting it wrong can cost you thousands in penalties, interest, and accountant fees.
The good news? The basics are simpler than you might think. This guide covers everything you need to know about GST and BAS for Australian pet service businesses.
Do You Need to Register for GST?
The $75,000 threshold rule:
You must register for GST if your business has:
- Annual turnover of $75,000 or more, OR
- Annual turnover likely to reach $75,000
Turnover means your gross income before expenses, not your profit.
Example: If you charge $80 per groom and do 20 grooms per week, that's $83,200 per year. You need to be registered for GST.
You can register voluntarily even if you're under the threshold. Some businesses do this to claim GST credits on purchases. Talk to your accountant about whether this makes sense for you.
Are Pet Services GST-Taxable?
Yes. Pet services are subject to GST at the standard 10% rate.
Taxable services include:
- Dog grooming
- Dog daycare
- Dog walking
- Pet training
- Pet boarding
- Pet sitting
GST-free (not taxable):
- Veterinary services (GST-free under health provisions)
- Sale of live animals (in some cases)
How GST Works in Practice
When you're registered for GST, you:
- Charge GST on your services (add 10% to your prices)
- Claim GST credits on business purchases
- Pay the difference to the ATO
Example:
| Item | Amount | GST |
|---|---|---|
| Grooming income | $5,000 | $500 collected |
| Grooming supplies | $300 | $27 credit |
| Net GST owed | $473 |
You collected $500 in GST from customers and paid $27 in GST on supplies. You owe the ATO the difference: $473.
Pricing: Inclusive or Exclusive?
GST-inclusive pricing (recommended for B2C):
- Customer sees $88 (which includes $8 GST)
- Cleaner for retail customers
- Required for most advertised prices
GST-exclusive pricing (common for B2B):
- Customer sees $80 + GST = $88
- Common for invoices to businesses
Most pet businesses use GST-inclusive pricing. The customer sees one simple number.
How Petboost Helps
Petboost payments calculates GST automatically on all invoices. Set your prices as GST-inclusive or exclusive, and the system handles the maths. GST is broken out clearly on invoices for your records.
Lodging Your BAS
BAS (Business Activity Statement) is how you report and pay your GST.
Lodging frequency:
| Annual Turnover | BAS Frequency | Due Date |
|---|---|---|
| Under $10M | Quarterly | 28 days after quarter ends |
| $20M+ (or monthly by choice) | Monthly | 21 days after month ends |
Most pet businesses lodge quarterly.
Quarterly due dates:
- Q1 (July-Sept): 28 October
- Q2 (Oct-Dec): 28 February
- Q3 (Jan-Mar): 28 April
- Q4 (Apr-June): 28 July
What you report on BAS:
- GST collected on sales
- GST paid on purchases
- PAYG withholding (if you have employees)
- PAYG instalments (if applicable)
Setting Up Your Books
Good bookkeeping makes BAS time painless. Bad bookkeeping makes it a nightmare.
Recommended setup:
- Accounting software: Xero, MYOB, or QuickBooks
- Bank feeds: Connect your bank accounts for automatic transactions
- Receipt capture: Digital receipts instead of shoeboxes
- Regular reconciliation: Weekly or fortnightly
The golden rule: Every transaction should be recorded. No cash going into personal accounts. No expenses paid from personal cards without reimbursement records.
How Petboost Helps
Petboost payments flow through Stripe, which integrates with Xero via Bank Feeds. Every payment is automatically categorised. Your accountant sees clean data at tax time.
Common GST Mistakes
Mistake 1: Not registering when required If you hit $75,000 and don't register, you still owe the GST you should have collected. Plus penalties.
Mistake 2: Claiming GST on non-deductible items You can only claim GST credits on business expenses. Personal purchases don't count.
Mistake 3: Missing BAS deadlines Late lodgement incurs penalties. Late payment incurs interest. Set calendar reminders.
Mistake 4: Poor record keeping Keep all records for 5 years. Digital is fine (and better for searching).
Working with Your Accountant
A good accountant is worth their fee. For pet businesses, they can help with:
- GST registration setup
- BAS lodgement (or review before you lodge)
- Tax planning and structuring
- Superannuation compliance
- End-of-year tax returns
What to provide your accountant:
- Clean accounting software access
- BAS summaries from your software
- Questions before the deadline (not after)
Tip: Find an accountant who understands small service businesses. The big firms are expensive and often don't get the nuances of pet businesses.
The Bottom Line
GST and BAS aren't complicated once you understand the basics. Register when required, charge GST on your services, claim credits on purchases, lodge on time, and keep good records.
The key is having systems that make it easy. When your payments, invoices, and accounting are connected, BAS time becomes a quick check rather than a stressful scramble.
Ready to Simplify Your Finances?
Petboost handles invoicing and GST calculation. Payments flow through Stripe, which offers Bank Feeds to Xero and QuickBooks. Clean financial data, less time with spreadsheets.
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Learn more about payments and invoicing or see our pricing.
