Wollongong’s GST registered business has seen notable fluctuations in new registrations and cancellations over the past decade, according to data from the Australian Business Register.
A GST-registered business is authorised by the government to collect and remit a 10 per cent goods and services tax (GST) on sales.
Business Illawarra director Coralie McCarthy said the cancellations of GST registered businesses might have to do more with government red tapes.
“Business Illawarra and Business New South Wales has long been advocating for tax reform and reduction of red tapes,” she said.
“It’s one of the most common thing we hear with business.
“GST is one component of it but there are many, and businesses get taxed in many many different ways.
“And it’s very difficult for them to navigate, so it’s one potential reason for it.”
Since July 2000 there have been some changes to GST in Australia, but the rate has been constant.
From September 2015 to September 2024, the number of new GST registrations showed an overall upward trend, albeit with annual fluctuations. The peak year for new registrations occurred in September 2023, when 776 businesses registered for GST, the highest recorded figure in this period. On the other hand, the lowest number of new registrations was recorded in September 2019, with just 589 new businesses.
Cancellations of GST registrations demonstrated a similar variability. The highest level of cancellations was recorded in September 2023, with 559 businesses ceasing their GST registrations. The lowest number of cancellations occurred in September 2016, with just 425 businesses cancelling the contract.
The net change—calculated as the difference between new GST registrations and cancellations—explains the fluctuations in Wollongong’s business sector. The largest net change occurred in September 2018, with 331 more businesses registering than cancelling. In contrast, the smallest net change happened in September 2024, with just 152 more businesses registering than cancelling.
In the September 2024 quarter, Wollongong’s business sector revealed differences in the number of new GST registrations and cancellations across various industries.
The construction industry emerged as the leader in new GST registrations, with 139 businesses registering for GST in the September quarter. Following closely was health care and social assistance with 82 new registrations, and transport, Postal and warehousing with 61 registrations.
The manufacturing sector has seen 21 new GST registrations, while Retail Trade has 36 new businesses registering for GST during the same period.
When it comes to cancellations, the construction sector again experienced the highest turnover, with 105 businesses cancelling their GST registrations. Transport, postal and warehousing recorded 48 cancellations, and health care & social Assistance has 40 cancellations. The retail trade sector saw 30 cancellations, while manufacturing had 14 businesses cancel their GST registration
The agriculture, forestry and fishing sector witnessed the negative net changes, with only five new GST registrations but 12 cancellations.
Additional reporting by Analise Greenhalgh.