Do You Need to Register for GST in Australia? The $75,000 Threshold Explained
One of the most common questions from Australian sole traders and small business owners is: 'Do I need to register for GST?' The answer depends on your annual turnover โ and getting it wrong can cost you in penalties and interest.
The $75,000 GST Registration Threshold
In Australia, you must register for GST if your annual GST turnover reaches $75,000 or more. For non-profit organisations, the threshold is higher at $150,000.
Once your turnover reaches or exceeds the threshold, you must register within 21 days. Failure to register means you still owe the ATO all the GST that should have been collected โ even if you didn't charge it to customers.
How to Calculate Your GST Turnover
GST turnover is your gross income from business activities โ before deducting expenses. It includes:
- Sales of goods and services
- Fees charged to clients
- Commission income
- Rental income from commercial property
It excludes:
- Input-taxed supplies (e.g. residential rent, financial services)
- GST itself (you calculate on the ex-GST amount)
- Proceeds from selling capital assets (unless it's your business)
- Private or non-business activities
GST Turnover = Total Gross Business Income (ex-GST)
minus input-taxed supplies
minus private/non-business income
Who MUST Register for GST โ Regardless of Turnover
You must also register if you want to claim fuel tax credits, or if you're starting a new business and expect your turnover to reach $75,000 in the first year of operation.
Voluntary Registration โ Should You Register Early?
If your turnover is under $75,000, you can still voluntarily register for GST. This can be beneficial if:
- Most of your customers are GST-registered businesses (they can claim your GST back)
- You have significant business expenses with GST you want to claim back
- You expect to grow past $75,000 soon and want to establish GST processes early
- Your industry expects suppliers to be GST-registered (e.g. government contracts)
How to Register for GST in Australia
Get your ABN first
You need an Australian Business Number (ABN) before registering for GST. Apply free at abr.gov.au.
Register via ATO Online Services
Log into myGov โ ATO Online Services โ Manage registrations โ Add GST registration.
Choose your reporting period
Select quarterly (most common), monthly (turnover $20M+) or annual (turnover under $75K, voluntary).
Start charging GST from your registration date
Once registered, add 10% GST to all taxable sales from your effective registration date.
What Happens After GST Registration?
Once registered, you must:
- Add 10% GST to all taxable sales
- Issue valid tax invoices for sales over $82.50
- Lodge a BAS quarterly (or as agreed) and pay net GST to the ATO
- Keep records for 5 years
- Notify the ATO within 28 days if your registration details change
Register for GST if your annual turnover reaches $75,000 (or $150,000 for non-profits), or immediately if you drive for a ride-share platform. You have 21 days from reaching the threshold to register. Failing to register doesn't mean you avoid GST โ you'll still owe it to the ATO.