When Should A Business Register & Pay For GST?

If you run a business in Australia, understanding your Goods and Services Tax (GST) obligations is essential. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. 

But when exactly does a business need to register for and pay GST?

1. Your Business Has Reached the GST Turnover Threshold

The most common trigger for needing to register for GST is if your business has a GST turnover (gross income excluding GST) of $75,000 or more per year. For non-profit organisations, the threshold is higher — $150,000 per year.

You must register within 21 days of reaching this threshold. Even if you’re not quite there yet, it’s important to monitor your income regularly so you don’t get caught out.

2. You’re Starting a Business and Expect to Earn Over the Threshold

If you’re starting a new business and expect your turnover to exceed $75,000 in the first year, you should register for GST right away. For example, if you already have contracts or sales lined up that will push your revenue over the threshold, it’s best to register early and include GST in your pricing from day one.

3. You’re a Ride-Sourcing or Taxi Driver

Regardless of how much you earn, if you’re providing taxi or ride-sourcing services (like Uber), GST registration is mandatory from the very first dollar. This is a specific exception to the usual $75,000 rule.

4. You Want to Claim GST Credits

Some businesses choose to register voluntarily, even if their turnover is under the threshold. Why? Being registered allows you to claim GST credits on business purchases — that is, to recoup the GST you’ve paid on items and services for your business. For example, if you buy office equipment or supplies, you can claim the GST component back if you’re registered.

5. You’re Involved in Importing, Exporting or Online Sales

GST also applies to many imports, and can be relevant if you sell goods or digital products to Australian customers from overseas. If you’re an overseas business selling to Australian consumers, you may need to register for and pay GST — even without an Australian presence.

What Happens After You Register?

Once registered, you’ll need to:

  • Add 10% GST to the price of your taxable goods and services.
  • Report your sales and purchases by lodging Business Activity Statements (BAS).
  • Pay the GST you collect, minus any credits you’re entitled to.

If you’re unsure whether you need to register or want help managing your GST obligations, speak with your accountant or BAS agent. Staying compliant from the start can save a lot of hassle down the track.