Key takeaways
- Registration is generally required once GST turnover reaches $75,000 ($150,000 for non-profits).
- Turnover includes both current and projected turnover.
- You generally have 21 days to register after reaching the threshold.
- Voluntary registration can suit businesses selling to other businesses.
Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Knowing when your business must register helps you avoid unexpected liabilities.
The registration threshold
In general, you must register for GST when your business's GST turnover reaches $75,000 or more (or $150,000 for non-profit organisations). This includes both your current and your projected turnover, and you generally have 21 days to register once you reach it.
Some businesses must register regardless of turnover — for example, taxi and ride-sourcing drivers.
Voluntary registration
Businesses below the threshold can choose to register. This lets you claim GST credits on business purchases, but also means charging GST on taxable sales and lodging activity statements. If you register voluntarily, you generally need to stay registered for at least 12 months.
What changes once you're registered
- Include GST in the price of taxable sales
- Issue tax invoices for sales over $82.50 (including GST) when requested
- Lodge Business Activity Statements and pay GST collected
- Keep records that support the GST credits you claim
Official sources
General information only. This article doesn't take into account your personal circumstances and isn't a substitute for professional advice. Tax rules and thresholds change — check current details with the ATO or contact us for advice specific to you.
Published by
ANS Taxation & Accounting
Melbourne accounting and tax practice