Starting or growing a new business in Australia means understanding your tax obligations, especially the goods and services tax (GST). Registering for GST can seem complex, but this guide simplifies the process, helping you know when and how to register, calculate your GST turnover, and lodge your first business activity statement BAS.
Whether you’re a sole trader reaching your first revenue milestone or launching a business expected to exceed the turnover threshold quickly, getting GST right from the start saves you from backdated tax bills, penalties, and stress.
GST Registration at a Glance
GST in Australia is a 10% tax on most goods and services. Registration becomes compulsory once your GST turnover reaches $75,000 (or $150,000 for not-for-profit organisations).
You must register for GST within 21 days of knowing your turnover will exceed the threshold. Taxi, limousine travel, or ride sourcing services must register from day one regardless of income.
An Australian business number (ABN) is required before you can register for GST. Registration can be completed online via the Australian taxation office (ATO) through GST online services or through a registered tax agent.
GST registration lets you charge GST and claim GST credits on business purchases, but it also brings obligations: issuing valid tax invoices showing the total price including GST, lodging Business Activity Statements (usually bas quarterly), and keeping records for 5 years.
Failing to register on time can lead to backdated GST debts, penalties, and interest charges. You can apply to backdate registration up to 4 years in some cases.
This guide also complements important topics such as Self-Managed Super Funds to provide a comprehensive view of small business tax responsibilities.
What Is GST and Who Has to Register?
The goods and services tax (GST) is a 10% value-added tax on most goods and services sold or consumed in Australia. It is collected at each stage of the supply chain, with the final cost passed on to consumers.
GST applies to most Australian businesses, including sole traders, companies, partnerships, trusts, and non profit organisations, when they meet specific turnover or activity criteria. Not every business needs to register immediately, but once you hit certain triggers, registration becomes mandatory.
Here are the key compulsory registration triggers:
| Situation | Threshold |
|---|---|
| Standard business or enterprise | $75,000 GST turnover |
| Not-for-profit organisations | $150,000 GST turnover |
| Taxi or limousine travel (including ride-sourcing services like Uber, Ola, DiDi) | $0 (register from first dollar) |
| Claiming fuel tax credits | Must be registered |
GST registration is not automatic when you get an ABN. You must apply separately to be registered for GST.
Registered vs. unregistered – what’s the difference?
Registered: You can charge GST on taxable sales, claim input tax credits on eligible business purchases, and appear more established when dealing with other businesses.
Not registered: No GST to remit, simpler reporting, but you cannot claim fuel tax credits or recover GST paid on expenses.
When You Need to Register for GST
The law focuses on your gst turnover over a 12-month period, not your profit. You need to track both your current gst turnover (what you’ve earned in the past 12 months) and your projected gst turnover (what you reasonably expect to earn in the coming months).
The current GST turnover threshold stands at:
GST turnover $75,000 for most businesses
GST turnover $150,000 for not-for-profit organisations
You must register within 21 days of either:
Your current 12-month GST turnover exceeding the threshold, or
Your projected 12-month turnover reasonably expected to exceed it
The 21-day window starts from when you know or reasonably should know that you’ll exceed the threshold – not from when you actually cross it.
Example: Sarah runs a café that earned $60,000 in the last 6 months. She signs a catering contract for $25,000 over the next quarter. Since her projected gst turnover exceeds $75,000, she must register within 21 days of signing.
Some activities trigger registration regardless of turnover:
Taxi and ride sourcing drivers (Uber, Ola, Didi) from their first passenger fare, which is a key point covered in the Rideshare Tax Guide Australia
Those wanting to claim fuel tax credits for eligible fuel use
Businesses in GST groups where aggregated turnover exceeds the threshold
Voluntary GST registration under the threshold generally requires staying registered for at least 12 months.
Working Out Your GST Turnover
Your gst turnover is your total turnover from business income (excluding GST) from taxable sales and gst-free sales. It’s not your net profit.
Includes:
Taxable sales (where you charge GST)
GST-free sales (exports, certain food, medical supplies)
Excludes:
Input taxed sales (most residential rent, financial services)
Sales of capital assets
Certain overseas sales
Sales within a GST group
Example: A sole trader invoices clients $82,500 including GST during the year. The GST-exclusive value is $82,500 ÷ 1.1 = $75,000, hitting the threshold and requiring registration.
Business accounting software like Xero or QuickBooks can help track GST turnover monthly. The Australian taxation office website also offers calculators.
For GST groups (related entities under common control), turnover is measured at the group level, excluding internal transactions.
Examples of When Registration Is Required
Example 1: A family trust running a blog earns over $75,000 from Australian advertising revenue and must register.
Example 2: An online retailer projects $80,000 in taxable sales in the first 12 months and needs to register soon after launching.
Example 3: A graphic designer earning $50,000–$60,000 annually remains under the threshold; registration is optional.
How to Register for GST in Australia
New businesses often struggle with efficiently tackling the question of How to register for GST in Australia. Most businesses can register for GST in under an hour if they have an ABN. You must obtain an ABN from the Australian Business Register before or alongside applying for GST.
Main registration methods:
| Method | Best For | Processing Time |
|---|---|---|
| ATO Online Services for Business (GST online) | Established businesses with ABN | 10-20 minutes |
| myGov (linked to ATO) | Sole traders | 10-20 minutes |
| Phone (13 28 66) | Those preferring verbal guidance | Same day |
| Registered agent | Complex structures, time-poor owners | Varies |
| Paper form NAT 2954 | Those without internet access | Up to 28 days |
Information you’ll need:
- ABN
- Legal and business names
- Contact details
- Business structure (sole trader, company, partnership, trust)
- Preferred GST start date
- Turnover estimates
- Preferred reporting method (monthly, quarterly bas, annual)
- Proof of identity requirements (especially for non-resident businesses)
The ATO will confirm your registration date, which determines when you must start charging GST and lodging BAS.
For non-resident businesses selling to Australian consumers, simplified registration arrangements exist but tracking Australian GST turnover remains necessary.
Choosing Your GST Reporting Period
Choose how often to report and pay GST via a Business Activity Statement:
Reporting Cycle | Who It’s For | Due Dates |
|---|---|---|
Monthly reporting | Businesses with $20M+ turnover (compulsory) or by choice | 21st of following month |
Quarterly BAS | Most businesses under $20M | 28 Oct, 28 Feb, 28 Apr, 28 Jul |
Annual GST return | Very small voluntary registrants | After year-end |
Businesses with aggregated turnover of $20 million or more must report monthly. Others generally report quarterly bas. |
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Tip: Businesses expecting regular GST refunds, like exporters or capital-intensive startups, might prefer monthly reporting to speed cash flow despite extra admin.
Very small businesses under $75,000 turnover that voluntarily register may report annually, paying GST instalments throughout the year. Additionally, businesses can choose to account for GST on a cash basis rather than an accrual basis.
This option is particularly beneficial for small and medium enterprises (SMEs) managing cash flow, as it allows them to report and pay GST only when payments are actually received or made, rather than when invoices are issued or received. Choosing the cash basis can ease cash flow pressures by aligning GST obligations with real cash movement, making it a critical consideration for many SMEs.
Since April 2025, the ATO can require businesses with poor GST compliance history to report monthly for at least 12 months. Poor compliance generally refers to businesses that have repeatedly failed to lodge Business Activity Statements (BAS) on time, underreported GST liabilities, or have outstanding GST debts. This measure aims to improve tax compliance and ensure timely reporting and payment of GST obligations.
Triggers for compulsory monthly reporting include:
Repeated late lodgement of BAS beyond due dates
Consistent underreporting of GST amounts owed
Accumulation of significant outstanding GST debts
Failure to comply with previous ATO compliance notices or warnings
Patterns of non-compliance identified through ATO data matching and risk assessments
Businesses subject to this requirement must remain on monthly reporting for a minimum of 12 months before they can apply to return to a quarterly cycle.
What Happens After You Register for GST?
Registration affects your pricing, invoicing, record-keeping, and BAS lodgements.
From your GST start date, you must:
Charge 10% GST on most taxable sales, clearly indicating whether prices include GST in the total price
Issue valid tax invoices for taxable sales over $82.50 (GST included) when requested
Lodge BAS on time, reporting all the GST collected and paid
Keep records including tax invoices and receipts for at least 5 years
A valid tax invoice must include:
Your ABN
Date of issue
Description of items sold
GST amount or statement that price includes GST
Your identity as supplier
Non-resident entities and GST groups have special rules; professional advice is recommended.
Cash vs Accrual GST Reporting
Choosing between cash and accrual accounting methods for GST reporting is a significant decision for small and medium enterprises (SMEs). Businesses with an aggregated turnover under $10 million can opt to report GST on a cash basis. This means they only report and pay GST when payments are actually received or made, rather than when invoices are issued or received.
Cash Basis Reporting Advantages:
Improves cash flow management by aligning GST obligations with actual cash movements
Simplifies bookkeeping by focusing on real payments instead of invoices
Particularly beneficial for businesses with slow-paying customers or variable income
Accrual Basis Reporting:
Requires reporting GST on invoices issued and received, regardless of payment status
Provides a more accurate picture of income and expenses during a period
Mandatory for businesses with turnover above $10 million or those choosing not to use cash basis
Selecting the right reporting method depends on your business’s cash flow needs and accounting preferences. You can change your GST accounting method by notifying the Australian Taxation Office (ATO), but it’s advisable to consult a registered tax agent to understand the implications fully.
Claiming GST Credits (Input Tax Credits)
Once registered, you can claim GST credits on eligible business purchases where GST was included and purchases relate to taxable or GST-free sales.
Common claimable expenses:
Office supplies and equipment
Stock purchases
Professional fees
Vehicle costs (business use portion)
Software subscriptions
Utilities at business premises
What you cannot claim:
Expenses related to input taxed sales (e.g., residential rent)
Private or domestic use
Entertainment expenses
Purchases without valid tax invoices
Calculation: GST on sales minus GST on purchases equals net GST liability or refund.
Example: A business collects $9,000 GST on sales and pays $6,500 GST on expenses in a quarter; it owes $2,500 net GST.
If You Don’t Register on Time
Failing to register when required can be costly. The ATO can backdate your registration and require payment of GST on past sales, even if you didn’t charge GST at the time.
Potential consequences:
Backdated GST on all taxable sales
Penalties starting at $222 per failure
Interest charges accruing daily
Administrative penalties based on culpability
While you may claim some backdated input tax credits, this often doesn’t fully offset GST owed.
Example: Tom’s turnover crossed $75,000 in March, but he forgot to register. Eight months later, the ATO demands about $6,800 in backdated GST plus interest and penalties.
Backdating Your GST Registration
You can request backdating up to 4 years if no fraud or evasion occurred. This can align registration with when taxable sales started or when you exceeded the threshold, allowing some historical GST credits.
The ATO assesses requests based on record quality, reasons for delay, compliance history, and voluntary disclosure.
Seeking help from a registered tax or BAS agent is advisable for past non-compliance.
Special Situations: Non-Residents, Online Sellers and Groups
Certain businesses have specific GST rules, especially overseas operators and groups.
Non-resident businesses: May need to register once Australian GST turnover reaches $75,000 for supplies like digital services or low-value imported goods, meeting proof of identity requirements.
Online sellers: Platforms like app stores may have GST responsibilities. Complex cross-border rules apply.
GST Groups: Related entities can form GST groups to simplify reporting by filing one BAS, netting internal transactions, and measuring turnover at group level.
GST branches allow large businesses to track divisions separately under one registration.
Due to complexity, groups and multinational structures should consult tax advisers.
Additionally, businesses must ensure Single Touch Payroll compliance as part of their overall tax and reporting obligations to the Australian Taxation Office.
Frequently Asked Questions About GST Registration in Australia
Can I cancel GST registration if turnover falls below $75,000?
Yes, if you expect turnover to stay below the threshold. Voluntary registrants usually must stay registered for 12 months. After cancellation, stop charging GST and adjust your final BAS accordingly.
Do I need to register if I only sell to overseas customers?
Exports are GST-free but count toward turnover. If total turnover exceeds $75,000, registration may still be required. Registered exporters often receive GST refunds.
How much does GST registration cost?
Registering for GST with the Australian Taxation Office (ATO) is free. There are no fees for registration itself, but you might incur costs if you use a tax agent or accountant or for managing GST obligations like lodging Business Activity Statements (BAS).
What happens when changing business structure?
GST registration doesn’t transfer between entities. New entities need their own ABN and GST registration. The old entity must cancel registration and handle final BAS and asset GST.
Can I register for GST without an ABN?
No. Australian businesses must have an ABN before registering for GST. Non-resident entities may have different rules.
Do hobbies need to register?
Hobbies with no profit expectation don’t require ABN or GST registration. Commercial activities with profit intent are considered businesses and must comply with GST rules.
Getting your GST obligations right early prevents future headaches. If your business nears the $75,000 threshold, review your numbers and prepare to register. For complex cases, consult a registered tax agent to ensure your GST work complies with all requirements and to manage GST instalments correctly.
This guide offers in-depth knowledge about critical GST Australia topics, including what is GST?, Small business GST obligations, Small business GST threshold, and business taxation service, among others.
