GST Registration in Australia: When, How & Why

When Is GST Registration Required?

You must register for GST if your business has a GST turnover of $75,000 or more per year (or $150,000 for not-for-profit organisations). This threshold applies to your current or projected turnover - meaning you must register as soon as you realise you will exceed the threshold, not after you have already exceeded it.

There are also special circumstances that require registration regardless of turnover:

• You provide taxi or ride-sharing services (including Uber, Ola, and DiDi)
• You want to claim fuel tax credits
• Your business is part of a GST group

How to Register for GST

Registration is straightforward and can be done online:

Through the Australian Business Register (ABR)

If you already have an ABN, you can add GST registration through the ABR website. The process takes about 15 minutes.

Through the ATO Business Portal

Log in with your myGovID and add GST registration to your existing ABN.

Through Your Tax Agent

Your accountant or tax agent can register you for GST as part of setting up your business structure.

You will need to choose:

• Your accounting basis (cash or accrual)
• Your reporting period (monthly, quarterly, or annual)
• Your GST start date (usually the date you exceeded or expect to exceed the threshold)

Should You Register Voluntarily?

If your turnover is below $75,000, you are not required to register for GST. However, voluntary registration has both advantages and disadvantages.

Advantages of Voluntary Registration

Claim GST credits on purchases - If you buy equipment, software, or supplies for your business, you can claim back the GST component. For a $5,500 laptop (including $500 GST), that is $500 back in your pocket.

Appear more established - Some larger businesses prefer to work with GST-registered suppliers. Being registered can make your business appear more professional.

No sudden price increases - If you register later when you hit the threshold, you either need to increase your prices by 10% to cover GST or absorb the cost yourself. Registering early avoids this shock.

Disadvantages of Voluntary Registration

Administrative burden - You need to lodge BAS returns (usually quarterly), track GST on every transaction, and maintain compliant records.

Cash flow impact - You collect GST from customers but must remit it to the ATO. If your customers are slow to pay, you might need to pay GST to the ATO before you have received it.

Price sensitivity - If your customers are consumers (B2C), adding 10% GST to your prices might make you less competitive against unregistered competitors.

The General Rule

If most of your customers are other businesses (B2B), voluntary registration usually makes sense because they can claim the GST back anyway. If your customers are consumers (B2C), carefully consider whether the administrative overhead is worth the input tax credits you would claim.

Your GST Obligations After Registration

Once registered, you must:

1. Charge GST on taxable supplies (most goods and services)
2. Issue tax invoices for sales of $82.50 or more (including GST)
3. Lodge BAS returns on time for your chosen reporting period
4. Pay net GST to the ATO (or receive a refund if you paid more than you collected)
5. Keep records for at least five years

GST-Free vs Input Taxed vs Taxable

Not everything attracts GST. Understanding the categories prevents costly errors:

Taxable (10% GST) - Most goods and services sold in Australia

GST-Free (0% GST but still reported) - Basic food items, medical services, education, exports, some water and sewerage services

Input Taxed (no GST claimed or charged) - Financial services (bank fees, insurance premiums), residential rent, precious metals

Out of scope - Wages, government grants, private sales between individuals

Cancelling Your GST Registration

You can cancel your GST registration if your turnover drops below $75,000 and you no longer want to be registered. However, you cannot cancel if you are still required to be registered.

To cancel, contact the ATO or update your registration through the ABR. You must lodge a final BAS for the period up to your cancellation date.

Common GST Registration Mistakes

Registering too late - The ATO can backdate your registration and charge you GST on sales you have already made without collecting it from customers.

Choosing the wrong accounting basis - Cash basis is simpler and better for cash flow. Only choose accrual if your accountant specifically recommends it.

Not updating your invoices - Once registered, your invoices must include your ABN, state that the price includes GST, and be formatted as tax invoices for sales over $82.50.

Forgetting to charge GST on all taxable supplies - Some businesses forget to add GST to certain revenue streams like consulting fees or service charges.

Getting GST registration right from the start saves significant headaches later. If in doubt, speak with your accountant before making the decision.