GST Registration: When You Must Register and What Changes

Goods and Services Tax (GST) is a 10% broad-based consumption tax applied to most goods, services and other items sold or consumed in Australia. If you run a business, understanding when you must register for GST — and what changes once you do — is essential for staying compliant and managing cash flow.

You must register for GST once your current GST turnover, or projected turnover, reaches $75,000 or more in any 12-month period. For non-profit organisations the threshold is $150,000. Taxi and ride-sourcing drivers have no threshold and must register regardless of turnover. If you are below the threshold, registration is voluntary.

Once registered, you must include GST in the price of your taxable sales, issue tax invoices for sales over $82.50 including GST, lodge Business Activity Statements (BAS) regularly, and report the GST you have collected less the GST credits you can claim on business purchases. This means more regular reporting, but also the ability to claim input tax credits on eligible business expenses.

Voluntary registration can be worthwhile if your business has significant startup costs or ongoing expenses that include GST, because it allows you to claim GST credits even before revenue ramps up. The trade-off is the added compliance of BAS lodgement and stricter record-keeping.

If you have any questions about GST registration, BAS obligations or whether voluntary registration suits your business, feel free to get in touch.