Measuring Turnover

Current turnover is calculated by adding up the value of all the supplies you have made, or are likely to make, during the 12-month period ending at the end of the current month. Projected turnover is calculated by adding up the value of all the supplies you have made, or are likely to make, during the 12-month period starting at the beginning of the current month.

In each case, the value does not include the GST component of the supplies. In working out the value, you also exclude supplies that normally would not give rise to GST in any event. This means that you exclude:

• supplies that are input taxed, eg financial supplies;
   
• supplies where there is no consideration paid, unless they are made to associates;
   
• supplies that are not made in connection with your business or enterprise; and
   
• supplies that are not connected with Australia.

Insurance payouts are also disregarded when working out turnover. If the supply is a loan of money, the value for turnover purposes is normally the amount of the loan. If you are a member of a GST group you also exclude supplies made between members. When working out projected turnover, you should not take into account transfers of capital assets, or any transfers associated with closing down the business or substantially and permanently reducing its size or scale donations may also be ignored.