In some instances, businesses are allowed to lodge their GST on an annual basis. However, they would be required to pay quarterly GST instalments which the ATO bases on prior years. The criteria for a business to meet is:
- If they carry on a business with an aggregated turnover of less than $10 million
- If they do not carry on a business, but their GST turnover is $2 million or less.
According the ATO website, you must assess your eligibility to report and pay GST annually as at 31 July each year. You can't continue to report and pay GST annually if on this date:
- Your projected GST turnover is:
- $75000 for businesses
- $150000 for non profit organisations
This method may work well for your business. However, you would need to ensure that funds are put to one side to ensure money is available to pay for the GST on an annual basis. Also, you should do your bookkeeping on a regular basis so questions can be answered while you know what the transaction is for and documentation can be chased up.