Registering for GST¶

Not every business has to charge GST. You only start collecting it once you are registered for GST. Whether you must register depends mainly on how much your business earns.

This lesson explains when registration is compulsory, when some businesses must register no matter their earnings, and how you can choose to register early.

In one line

You must register for GST once your GST turnover reaches the threshold — $75,000 for most businesses, or $150,000 for not-for-profits.

Why this matters¶

If you are required to register and you don't, the ATO can still treat your sales as including GST — meaning you could owe GST you never collected from your customers. Knowing when you must register helps you register on time and avoid that shortfall.

What you will learn¶

The turnover level that makes registering compulsory
Which businesses must register no matter how much they earn
What voluntary registration is, and why you need an ABN

Understanding the concept¶

The ATO uses a figure called GST turnover. In simple terms, this is your business income, worked out in the way the ATO sets out. When your GST turnover reaches the registration threshold, you must register for GST.

For most businesses, that threshold is $75,000. The ATO sets a higher threshold of $150,000 for not-for-profit organisations (groups that don't run to make a profit for owners, such as many clubs and charities).

Some businesses must register regardless of turnover — even if they earn well under $75,000. The ATO says this applies to taxi, limousine and rideshare (ride-sourcing) drivers, who must be registered for GST. For a rideshare driver, this means being registered before the first trip.

You don't have to wait to reach the threshold. You can choose to register early — this is called voluntary registration. Some businesses do this so they can claim GST credits on their purchases from the start.

Before you can register for GST, you need an ABN (Australian business number), which is the number that identifies your business.

For accountants & bookkeepers

The ATO requires registration within 21 days of GST turnover meeting or exceeding the threshold. GST turnover is tested on both current and projected turnover under the ATO's rules, and the taxi and ride-sourcing rule removes the turnover test entirely.

Example¶

Jordan starts a mobile dog-grooming business. In the first few months, income is small and stays well under the threshold, so Jordan is not required to register for GST yet. Jordan does register voluntarily, though, to claim GST credits on the van fit-out and equipment.

Jordan's friend Sam signs up to drive for a rideshare app. Even though Sam expects to earn far less than $75,000, the ATO rule for rideshare drivers means Sam must register for GST before taking the first passenger. Both Jordan and Sam needed an ABN before they could register.

Common mistakes¶

Assuming you never need to register because you earn under $75,000 — taxi and rideshare drivers must register regardless of turnover.
Waiting too long after passing the threshold, then owing GST on past sales.
Trying to register for GST before getting an ABN — you need the ABN first.

How this works in myaccountant¶

In the app — once you are registered for GST, you tell myaccountant, and it then tracks the GST on your sales and purchases and prepares your BAS. If you are not registered, you can still record your income and expenses without GST.

Key points¶

You must register for GST when your GST turnover reaches the threshold.
The threshold is $75,000 for most businesses and $150,000 for not-for-profits.
Taxi, limousine and rideshare drivers must register regardless of turnover.
You can register voluntarily before you reach the threshold.
You need an ABN before you can register for GST.

Learn next¶

General information only — not tax, super or financial advice.

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