Tax & GST
When Do You Need to Register for GST?
Running a business means learning a lot of new words and rules. One big one is GST. Let's break it down into simple pieces so it's easy to understand.
What Is GST?
GST stands for Goods and Services Tax. It's an extra 10% added to the price of most things sold in Australia.
When a business is registered for GST, it:
- Adds 10% to what it charges customers
- Sends that extra money to the government
- Can also claim back GST it paid on business expenses
The Big Number to Remember: $75,000
Here's the main rule. You must register for GST if your business earns $75,000 or more in a year.
This is called your "GST turnover." It means the total money your business brings in from sales, before you subtract expenses.
Think of it like a bucket. Once the money in your bucket reaches $75,000 in a 12-month period, it's time to register.
$
75,000
GST turnover threshold — most businesses
$
150,000
GST turnover threshold — non-profits
What If I'm a Non-Profit?
Good news! If you run a non-profit organisation, your number is higher. You need to register once you reach $150,000.
Don't Wait Until the Last Minute
Once you know you're going to hit $75,000, you have 21 days to register. That's about three weeks. It's smart to check your numbers often, so you're never caught by surprise.
Register within 21 days
Once your turnover is set to reach $75,000, the clock starts — don't leave it to the last minute.
Some Businesses Must Register No Matter What
A few types of businesses have to register for GST even if they earn less than $75,000. This includes:
- Taxi and rideshare drivers (like Uber drivers)
- Businesses that want to claim fuel tax credits
If this is you, the $75,000 rule doesn't apply. You register from day one.
Can I Register Early, Even If I Earn Less?
Yes! This is called voluntary registration. Some small businesses choose to register for GST even before they hit $75,000.
Why would someone do this? A few reasons:
- They can claim back GST on things they buy for the business
- It can make the business look more established to customers
- It's one less thing to think about later
But remember, once you register, you must charge GST and file regular reports, even if your income is small.
Quick Checklist
Ask yourself these questions:
Have I earned $75,000 or more this year (or will I soon)? → You must register.
Am I a non-profit earning $150,000 or more? → You must register.
Do I drive a taxi or rideshare? → You must register, no matter your earnings.
Do I want the benefits of registering early? → You can choose to register voluntarily.
Not sure what to do?
GST rules can get tricky, especially as your business grows. Give us a ring and book an appointment — we'll look at your specific situation and help you make the right choice.
Book a free chatThis post is general information only and isn't personal tax advice. Always check with a registered tax professional about your own situation.