GST registration: when and how to register

The $75,000 threshold

You must register for GST if you run a business or enterprise and your GST turnover is $75,000 or more. For non-profit organisations the threshold is $150,000. Your GST turnover is your gross business income, not profit, and excludes GST you charge, input-taxed sales, and certain other items. You meet the threshold if your current GST turnover is at or above it, or if you project that it will be at or above it for the next 12 months.

You must register within 21 days of reaching the threshold. If you are required to register and fail to do so, the ATO can backdate your registration and you can be liable for GST on sales you made while you should have been registered, even if you did not charge it to your customers.

Who must register regardless of turnover

Taxi and ride-sourcing drivers must register for GST from the first dollar they earn from those services. This includes people who use apps to provide passenger transport. Some other situations also require registration regardless of turnover, so if you are in a specialised industry check the ATO guidance.

Voluntary registration

If your turnover is below the threshold you may still register. Doing so lets you claim input tax credits on business purchases, which can be valuable if you have significant start-up costs or buy a lot from GST-registered suppliers. The trade-off is that you must charge GST on your sales, lodge BAS regularly and keep proper records. Once you register you generally stay registered for at least 12 months before you can cancel, unless your circumstances change.

You need an ABN first

To register for GST you need an Australian Business Number (ABN). You can apply for both at the same time. Registering is done through the Australian Business Register and the ATO, usually online through your myGov account linked to the ATO or via a registered tax or BAS agent. The ATO will tell you your reporting cycle, which is usually quarterly for small businesses.

What changes once you register

From your effective date of registration you must include GST in your prices for taxable sales, issue tax invoices when customers ask for them, report on your BAS, and keep records for five years. You can claim input tax credits for GST included in the price of your business purchases once you hold a valid tax invoice. You should also review your pricing, since a business that previously charged $100 with no GST now has to either charge $110 or accept receiving $90.91 of income and $9.09 of GST.

Cancelling registration

If your turnover falls and you are not required to be registered, you can cancel your GST registration. Cancelling can trigger a final adjustment because you may owe GST on assets you still hold that you claimed credits on. Ask your registered tax or BAS agent, or the ATO, before cancelling.