Do I need to register for GST? The $75,000 rule
When Australian businesses must register for GST, how the $75,000 turnover test works, special rules for ride-share drivers, and what happens after you register.
Goods and services tax (GST) is a 10% tax on most goods and services sold in Australia. Whether you have to register depends mainly on your turnover.
When you must register
- Your business has a GST turnover of $75,000 or more (or $150,000 or more for non-profit organisations).
- You provide taxi or ride-sourcing services (such as Uber or DiDi), whatever your turnover.
- You want to claim fuel tax credits.
GST turnover is your total business income, not your profit, and excludes GST itself and some items such as sales of capital assets. You must check both your turnover for the past 12 months and what you expect for the next 12 months.
How quickly
You must register within 21 days of reaching the threshold. If you register late, the ATO can ask you to pay GST on sales you made from the date you should have registered, even if you didn't charge your customers for it.
Choosing to register early
You can register voluntarily below $75,000. This lets you claim GST credits on business purchases, which can help if you sell mainly to other GST-registered businesses. The trade-off is lodging a BAS and adding 10% to your prices.
After you register
- Include GST in your prices and issue tax invoices.
- Lodge a BAS each quarter (or monthly or annually, depending on your situation).
- Keep records of GST on sales and purchases.
We prepare and lodge BAS from $210 + GST per quarter. Ask us if you are close to the threshold.
This article is general information only and does not take your personal circumstances into account. It is not financial or tax advice. Tax rules change, so please contact us before acting on it. Information current as at the date above.