Goods and Services Tax (GST) is a 10% tax on most goods and services sold or consumed in Australia. If you run a business here, GST will almost certainly affect you at some point.
The big question for most business owners is: “At what point do I have to register for GST?”
This guide walks you through:
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When GST registration is compulsory
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How the $75,000 GST turnover threshold works
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When registration is optional
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Special rules for Uber, taxis and ride‑share
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What happens if you don’t register when you should
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Key GST concessions and credits for small business
When is GST registration compulsory?
You must register for GST if any of the following apply:
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Your business has a GST turnover of $75,000 or more
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Your non‑profit organisation has a GST turnover of $150,000 or more
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You provide taxi or limousine travel, including ride‑sourcing services like Uber, DiDi, Ola or Bolt, regardless of your turnover
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You want to claim fuel tax credits for your business, regardless of turnover
GST turnover is based on your gross business income (before tax), not your profit.
If your business doesn’t fall into any of these categories, registration is optional, not compulsory.
Understanding the $75,000 GST turnover threshold
The $75,000 threshold catches many new and growing businesses.
GST turnover ≠ profit
GST turnover is your gross business income from your taxable and GST‑free sales, excluding:
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GST included in sales
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Sales that are not for payment
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Input‑taxed sales (e.g. residential rent, some financial supplies)
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Sales not connected with Australia
It is not your net profit after expenses.
Example – Online clothing store
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You sell $80,000 worth of clothes over a 12‑month period
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Your expenses are $40,000
Even though you only keep $40,000 after costs, your GST turnover is $80,000, so you must register for GST.
Current vs projected GST turnover
The ATO looks at your turnover in two ways:
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Current GST turnover
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Your gross business income for the current month plus the previous 11 months
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Projected GST turnover
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Your likely gross business income for the current month plus the next 11 months
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You must register for GST if either of these reach the $75,000 threshold ($150,000 for non‑profits).
The 21‑day rule
Once you become aware that your GST turnover has reached (or is likely to reach) the threshold, you generally have 21 days to register.
That’s why it’s important to monitor your turnover regularly – monthly is a good habit.
Do I have to register if I earn under $75,000?
If your GST turnover is below $75,000, registration is usually optional (unless you fall into a special category like ride‑share).
You may choose to register if you’re under the threshold. But if you do:
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You must add 10% GST to your taxable sales
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You must lodge Business Activity Statements (BAS)
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You can claim GST credits on eligible business purchases
This can be attractive if:
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Most of your customers are GST‑registered businesses (they can claim the GST back anyway)
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You have significant GST‑bearing expenses and want to claim credits
However, if you deal mainly with consumers, adding GST may make your prices less competitive.
Special rules for Uber, taxis and ride‑share
If you drive a taxi, limousine or ride‑share vehicle (e.g. Uber, DiDi, Ola, Bolt), you must register for GST from day one, regardless of how much you earn.
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There is no $75,000 threshold for this industry
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You need an ABN and GST registration before your first trip
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All income under that ABN is treated as GST‑registered
If you’re a ride‑share driver and need help registering, you can use our dedicated Uber & Ride Share GST Registration service via GST Register.
What are GST credits?
Once you’re registered for GST, you can claim GST credits (input tax credits) for the GST included in the price of goods and services you purchase for your business.
Example – Buying a computer
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You buy a computer for your office for $1,100 (including GST)
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The GST component is $100 (one‑eleventh of $1,100)
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If you’re registered for GST and the computer is used in your business, you may be able to claim the $100 back as a GST credit in your BAS
If, for a period, your GST credits exceed the GST you’ve collected, the ATO may owe you a refund.
Small business GST concessions
If you’re a small business with an aggregated turnover of less than $10 million, you may be eligible for various GST and small business concessions that can simplify your reporting.
These may include:
Accounting for GST on a cash basis
You can account for GST in the period you actually receive or pay the money, rather than the period you issue or receive invoices. This often helps with cash flow.
Paying GST by instalments
Some small businesses can pay GST by quarterly instalments based on an ATO estimate, then make an annual adjustment if needed.
Simplified BAS reporting
If your GST turnover is under $10 million, you may be able to use simpler BAS reporting, with fewer labels to complete.
Please note that because concession rules can change and may depend on your structure and industry, it’s wise to get tailored advice from a tax professional.
Still not sure if you need to register?
If you’re unsure whether you need to register for GST, or you’ve just realised your turnover is getting close to the threshold? You can call us on 1800 546 526 during business hours, or use our contact form to sned us your enquiries.
When you’re ready to proceed, you can use our online GST registration form to have your registration handled quickly and correctly, without dealing directly with the ATO or through complicated portals.
GST Register is an easy way to register for GST online with the ATO.
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