If you run a business in Australia, understanding GST registration is an important part of managing your tax and accounting obligations.
For many businesses, GST registration becomes compulsory once their GST turnover reaches the relevant threshold. However, there are also situations where GST registration is required regardless of turnover.
In this guide, we explain when to register for GST in Australia, what the $75,000 threshold means, when registration can be voluntary and what you need to do after registering.
Businesses generally need to register when their GST turnover reaches $75,000 or more, subject to specific rules and exceptions.
What Is GST?
GST stands for Goods and Services Tax. It is a broad-based tax on many goods, services and other taxable supplies made in Australia.
When a business is registered for GST, it generally includes GST in the price of its taxable sales and reports GST through its business activity statements.
GST registration can also allow an eligible business to claim GST credits on certain business purchases, provided the relevant requirements are satisfied.
When Does a Business Need to Register for GST?
According to current ATO guidance, you generally need to register for GST when your business or enterprise has a GST turnover of $75,000 or more.
This can apply whether you operate as a sole trader, company, partnership or trust, depending on your circumstances.
You may also need to register when you start a new business and expect your GST turnover to reach the threshold during the first year of operation. :contentReference[oaicite:1]{index=1}
What Is the GST Registration Threshold?
The general GST registration threshold is $75,000 in GST turnover.
Importantly, GST turnover is not simply the amount sitting in your bank account. The calculation of GST turnover has specific rules and may require consideration of your current and projected business turnover.
Important: Don't wait until the end of the financial year to check whether you need GST registration. Businesses should monitor their turnover and registration obligations throughout the year.
Are There Businesses That Must Register Regardless of Turnover?
Yes. Some businesses have GST registration requirements that are different from the general $75,000 threshold.
Taxi & Ride-Sourcing
Taxi, limousine and ride-sourcing operators have specific GST registration requirements that apply regardless of turnover.
Not-for-Profit Organisations
The GST registration threshold for eligible not-for-profit organisations is $150,000 in GST turnover.
Fuel Tax Credits
Businesses wanting to claim fuel tax credits may have GST registration requirements that need to be considered.
Expected Turnover
A new business may need to register if it expects its GST turnover to reach the relevant threshold.
The ATO identifies these situations in its current GST registration guidance. :contentReference[oaicite:2]{index=2}
Can You Register for GST Voluntarily?
Yes. If your business is below the compulsory GST registration threshold, you can generally choose to register voluntarily if you meet the requirements.
Voluntary GST registration means that you generally need to follow the responsibilities that come with being GST registered, including charging GST on taxable sales and reporting through BAS.
The ATO also states that businesses that voluntarily register generally need to remain registered for at least 12 months. :contentReference[oaicite:3]{index=3}
Should a Small Business Register for GST Below $75,000?
There isn't one answer that applies to every business. Voluntary registration can have advantages and administrative consequences depending on the business.
| Potential Consideration | What It May Mean |
|---|---|
| GST on taxable sales | You generally need to include GST in the price of taxable sales. |
| GST credits | You may be able to claim eligible GST credits on business purchases. |
| BAS reporting | GST registration brings ongoing reporting obligations. |
| Record keeping | Accurate tax invoices and accounting records become particularly important. |
| Customer pricing | You may need to consider how GST affects your pricing and invoices. |
What Happens If You Reach the $75,000 Threshold?
If your business reaches the relevant GST registration threshold, you should act promptly.
Current ATO guidance states that once you reach the threshold, you generally have 21 days to register for GST. :contentReference[oaicite:4]{index=4}
If you don't register when required, you may still have GST obligations from the date you were required to be registered. Penalties and interest can also apply in some circumstances.
Can You Charge GST Before Registering?
If you are not registered for GST, you generally cannot charge or collect GST from your customers.
The ATO specifically states that a business that is not registered for GST cannot charge GST. :contentReference[oaicite:5]{index=5}
Tip: Don't simply add 10% GST to your invoices unless your business is properly registered and the supply is subject to GST.
What Do You Need to Do After GST Registration?
GST registration is not the end of the process. Once registered, you need to manage the ongoing GST and reporting requirements that apply to your business.
- Include GST correctly on taxable sales where applicable.
- Keep appropriate tax invoices and business records.
- Track GST collected and eligible GST credits.
- Prepare and lodge your Business Activity Statement as required.
- Pay any net GST amount that is due.
- Keep your accounting records organised.
GST reporting frequency can depend on your circumstances and reporting arrangement.
GST Registration Process in Australia
If you determine that GST registration is required or appropriate, the process generally involves reviewing your business information and completing the relevant registration.
Review
Review your business activities and GST turnover.
Determine
Determine whether registration is required or voluntary.
Register
Complete the GST registration process through the appropriate ATO channel.
Manage
Keep records organised and manage ongoing BAS and GST obligations.
Need help setting up your business first? Explore our ABN Registration Services or learn about our BAS & GST Services for ongoing accounting support.
Frequently Asked Questions About GST Registration
What is the GST registration threshold in Australia?
The general GST registration threshold is $75,000 in GST turnover. Eligible not-for-profit organisations generally have a $150,000 threshold.
Do I need to register for GST if my business earns less than $75,000?
Not necessarily. GST registration is generally optional below the threshold, although specific situations can make registration compulsory.
Can I voluntarily register for GST?
Yes, businesses that are not required to register can generally choose voluntary GST registration if they meet the relevant requirements.
Do Uber and other ride-sourcing drivers need GST registration?
Taxi and ride-sourcing operators have specific GST registration rules and generally need to register regardless of turnover. :contentReference[oaicite:6]{index=6}
How long do I have to register after reaching the threshold?
Current ATO guidance states that you generally have 21 days to register once you reach the relevant threshold. :contentReference[oaicite:7]{index=7}
Can I charge GST without being registered?
No. If you are not registered for GST, you generally cannot charge or collect GST. :contentReference[oaicite:8]{index=8}
What happens after I register for GST?
You generally need to manage GST on taxable sales, keep appropriate records, report through BAS and meet other GST obligations that apply to your business.
Need Help With GST Registration?
UV TAX can help you understand your GST registration requirements and organise your BAS and GST accounting processes.
Talk To UV TAXRelated UV TAX Services
- GST Registration Services
- BAS & GST Services
- ABN Registration
- Bookkeeping Services
- Business Tax Returns