When you register for GST, you will be required to collect GST on behalf of the government and pay it to the ATO.

You collect this extra money by including GST in the price you charge for your goods or services.

You can also claim credits from the ATO for any GST you’ve paid when buying goods and services for your business. These credits will offset any amounts you need to pay.

It’s important to remember that you cannot keep the GST you collect. It is not your money or part of your income.  

When you pay the GST amounts you’ve collected on behalf of the government, you're helping to build and support vital services for the Australian community.

The money you collect is distributed by the State Government to help pay for a range of services such as hospitals, schools, childcare, emergency services including police, fire and ambulances, roads and public transport.

Consider the following scenario.

Imagine a situation where a local hospital urgently needs to expand its facilities to accommodate an increase in patients. The GST collected from businesses in the community plays a critical role in funding this expansion.

By collecting and then paying GST to the ATO, businesses are directly contributing to the improvement of healthcare services in their area. This means that when families need medical care, the hospital is equipped to provide it, ultimately benefitting everyone in the community.