GST core

Current GST turnover

Current GST turnover is your total GST turnover for the current month and the previous 11 months, used to test whether you have already reached the GST registration threshold.

Current GST turnover is the backward-looking test for GST registration. It adds up your GST turnover for the current month together with the previous 11 months, giving a rolling 12-month total. If that total reaches the threshold, which is $75,000 for most businesses and $150,000 for non-profit organisations, you are generally required to register for GST.

Because the window rolls forward each month, your result can change monthly. A business that was under the threshold at the end of May may be over it at the end of June if a strong month replaces a weak one from a year earlier. This is why checking only at the end of the financial year is a common mistake. The law does not wait for 30 June, and the obligation to register arises when the test is met.

What counts is your GST turnover, which is the gross value of your sales made in carrying on your enterprise, leaving out GST itself. Taxable sales and GST-free sales count, including exports. Input-taxed sales, such as financial supplies and residential rent, do not count, and neither generally do sales of business assets outside the ordinary course of business. Costs and expenses are not deducted, so a business with thin margins can reach the threshold quickly.

To use the test properly, start with a record of monthly sales. Accounting software can produce a rolling 12-month report in a few clicks. For a business that has been trading for less than 12 months, the current GST turnover covers only the months you have actually traded, which is why the projected test often matters more for new businesses.

If you pass the test, the obligation is to apply for registration promptly, and ATO guidance states you generally have 21 days from the point you find out. If the registration is late, the GST on sales made since you should have registered may become payable by you, even though your customers were not charged. You might be able to recover it from customers in some cases, but that is often difficult.

A frequent misunderstanding is that either test is optional. In fact you must register if either the current or the projected test reaches the threshold. Another misunderstanding is that exceeding the threshold in one month, for instance through a one-off asset sale, always triggers registration. Care is needed in identifying which sales are counted.

This is general information. For borderline cases, or when related entities are involved, confirm your position with the ATO or a registered tax professional.

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