When Do You Need to Register for GST in Australia?

Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. If your business reaches the GST registration threshold, you must register, collect GST from customers, and report it to the ATO via your Business Activity Statement (BAS).

Understanding when GST registration is required — and what happens once you're registered — is essential for staying compliant and avoiding penalties. Here's everything you need to know.

The GST Registration Threshold

You must register for GST if your business's gross turnover (total sales before expenses) is $75,000 or more per year. For non-profit organisations, the threshold is $150,000.

The threshold applies to your current (last 12 months) or projected (next 12 months) turnover. If you've already exceeded $75,000 in the past 12 months, you must register immediately. If you expect to exceed $75,000 in the next 12 months, you must also register.

Voluntary GST Registration

You can register for GST voluntarily even if your turnover is below $75,000. There are good reasons to do so:

• Claim GST credits: Once registered, you can claim back the GST you pay on business expenses (input tax credits)
• Professional appearance: Some clients (especially larger businesses) prefer to deal with GST-registered suppliers
• Approaching the threshold: If you're close to $75,000, registering early helps you prepare systems and processes
• Fuel tax credits: Registering for GST is a prerequisite for claiming fuel tax credits

The downside of voluntary registration is added administrative burden — you'll need to lodge BAS and charge GST on all your invoices. Consider whether the benefits outweigh the compliance cost.

How to Register for GST

Registering for GST is straightforward. You have three options:

You must register within 21 days of reaching the $75,000 threshold. Failing to register on time means you may still be liable to pay GST to the ATO even if you didn't charge your customers — an expensive lesson.

What Changes When You Register for GST

Once you're GST-registered, your obligations change significantly:

GST-Free and Input Taxed Supplies

Not all sales attract GST. Some supplies are GST-free (you don't charge GST, but you can still claim input tax credits on related expenses):

• Most fresh food (fruit, vegetables, meat, etc.)
• Most health services (doctor visits, hospital stays)
• Most educational courses
• Exports of goods and services
• International travel and transport

Input taxed supplies (like residential rent and financial services) also don't attract GST, but you generally can't claim input tax credits on related expenses either. If your business has complex GST obligations, consult a registered tax agent.