Most small businesses in Australia must register for GST once their GST turnover reaches $75,000 in a rolling 12-month period. Below that, registration is optional for most businesses.
The part that catches people out is the word turnover. It means gross income, not profit — and the test looks forward as well as backward.
When you must register
- Your GST turnover is $75,000 or more in a 12-month period (current or projected)
- You run a non-profit organisation with turnover of $150,000 or more
- You drive taxi, limousine or ride-sourcing services for passengers — no threshold applies
- You want to claim fuel tax credits, regardless of turnover
A worked example
Sam is a sole trader carpenter in Blacktown. From August to April he invoices $62,000. In May he signs a $16,000 job to be completed that month.
The moment Sam knows about that job, his projected 12-month turnover is $78,000 — over the threshold. He has 21 days from that point to register, and he should add GST to the new job's invoice. If he waits until the tax return, the GST on those sales still has to be paid, but out of his own pocket.
What changes once you're registered
- Add 10% GST to your taxable sales and show it on your tax invoices
- Claim GST credits on the business purchases you paid GST on
- Lodge a BAS each quarter (or monthly, if you choose or are required to)
- Keep tax invoices and records for five years
From there, GST is reported through your BAS. If you would rather not manage that each quarter, a registered agent can prepare and lodge it for you — see our BAS agent services and appointment options.
Common questions
- What counts towards the $75,000 GST turnover?
- GST turnover is your gross business income from sales connected with Australia, excluding GST itself, input-taxed sales, and sales not connected with your business. It is not your profit — a sole trader invoicing $80,000 and spending $30,000 on expenses is over the threshold.
- Is the threshold based on the financial year?
- No. It is a rolling 12-month test. You must register if your turnover for the current month plus the previous 11 months reaches $75,000 (current turnover), or if you expect the current month plus the next 11 months to reach it (projected turnover).
- How long do I have to register?
- You have 21 days from the day you become aware that you will exceed the threshold. If you register late, the ATO can require you to pay the GST on sales made from the date you should have registered — even if you never charged your customers GST.
- Should I register for GST voluntarily under $75,000?
- Sometimes. It can be worthwhile if you buy a lot of GST-inclusive equipment or stock, or if your customers are GST-registered businesses. The trade-off is quarterly BAS lodgement and 10% added to your prices. It is worth a short conversation before you decide.
- Can I cancel my GST registration if turnover drops?
- Yes. If you are no longer required to be registered you can cancel, though generally not within the first 12 months of voluntary registration. You may also need to account for GST on assets you keep.
Not sure whether you've crossed the threshold?
Bring your invoices and we'll check your turnover, register you if needed, and set up your BAS cycle. Seven Hills, Blacktown and Greater Western Sydney.
Book an appointment