Tradies follow the same rule as everyone: GST registration becomes compulsory once GST turnover hits $75,000 a year, and on labour alone, a full-time subbie on $700–$900 a day crosses that line well inside a year. Many register earlier anyway: builders claim back the GST you charge, so it costs them nothing, and registering lets you claim GST credits on tools, the ute and materials.
Register for GST →5-minute form · usually done in 4 business hours
Do the day-rate maths first.
$75,000 sounds like a lot until you divide it by a day rate. At $750 a day it's exactly 100 working days, about five months of full-time work. The threshold is also forward-looking: the moment your expected rolling 12-month turnover crosses $75,000, you have 21 days to register. Waiting for the financial year to prove it is how tradies end up backdating. The day rate calculator does that sum, and the margin and markup calculator works out what to charge on materials. Our flat registration fee is itself deductible.
Why subbies often register early.
- Your customer claims it back. Invoicing builders and head contractors is business-to-business: they recover the GST you charge as credits, so adding GST doesn't make you more expensive to them.
- Your gear generates credits. Tools, the ute, fuel, insurance, materials: registered, you claim one-eleventh of those costs back on the business-use portion (how credits work). On a $60,000 work vehicle that's real money.
- Set-up costs can be recovered. Bought gear before registering? Backdating can move your start date behind the purchases.
The TPAR reality check.
Builders and many other businesses lodge a taxable payments annual report (TPAR) with the ATO listing exactly what they paid each subcontractor, ABN by ABN. Your contracting income is visible whether or not you report it, so your GST position needs to match reality. If your TPAR-reported income is over $75,000 and your ABN shows no GST registration, that's an easy data-match.
Quoting and invoicing.
Quotes to homeowners should be GST-inclusive: consumers compare bottom-line prices, and the law expects consumer pricing to include GST. On the invoice itself, materials you on-charge carry GST like your labour does once you're registered: it's one taxable supply of building services. Get the invoice format right the first time (tax invoice requirements) and builders' accounts teams stop bouncing your invoices back.
Quick answers.
I'm a subbie: the builder handles the tax side, right?
No. Payments to your ABN are your business income, and builders report them to the ATO in their taxable payments annual report. Registering for GST at $75,000, invoicing correctly and lodging BAS are yours to do.
Can I claim the GST on my ute?
If you're GST-registered, yes, the credit on the business-use portion of the purchase price, plus running costs like fuel, servicing and insurance in the same proportion. Keep a logbook to support the split.
Do I charge GST on materials I pass on to the client?
Once registered, yes, your invoice is one taxable supply, labour and materials alike, even where the materials already had GST when you bought them. You claim that input GST back as a credit, so you're not paying twice.
What if I crossed $75,000 without registering?
Register now and backdate to when you crossed. The ATO treats sales since that date as GST-inclusive whether you charged it or not, so acting quickly limits the damage. Our agents handle backdating and check the numbers before lodging.
Related guides: Day rate calculator · Crossing the $75,000 threshold · Backdating GST registration · Tax invoice requirements · GST on motor vehicles · The GST margin scheme for property · GST on insurance
On the tools, not the paperwork. We'll do this bit.
Lodged by Registered BAS Agent 25972850 · tax deductible · free help on 1800 546 526.