Do I Need to Register for GST?

As a tradie running your own business, staying on top of your taxes means understanding that getting it wrong can lead to fines or lost income, but getting it right, means you stay compliant, avoid unnecessary costs and are setting yourself up for growth.

There can be a lot of confusion around GST. Some people think it’s optional if you’re just starting out and others worry about registering too early. Let’s clear things up. 

1. What Is GST and When Does It Apply 

GST (Goods and Services Tax) is a 10 percent tax added to most goods and services sold in Australia. If you’re a sole trader, subcontractor or running a small business, it’s important to understand when you need to register. 

You must register for GST if: 

• Your business has a turnover of $75,000 dollars or more annually • You drive a taxi or ride-share such as Uber, regardless of income  

2. Not Earning $75,000 Yet? Here's What to Consider 

If you're under the threshold, GST registration isn’t mandatory, but it could still be helpful. Here's why: 

Benefits of registering voluntarily: 

• You can claim GST on your business purchases like tools, vehicles and supplies  • Your business may appear more established to clients or contractors  • It prepares you early for compliance as your income grows 

Things to consider: 

• You’ll need to lodge Business Activity Statements (BAS) regularly • Clients may see an increase in your pricing, so clear communication is key 

3. The Risks of Not Registering on Time 

If your turnover reaches $75,000 dollars and you don’t register within 21 days, the ATO may backdate your registration and you could owe GST on previous sales. 

How to avoid this: 

• Track your income every month • Work with an accountant to monitor your earnings • Consider registering early if growth is likely soon 

4. Top GST Tips for Tradies 

• Keep digital records of all sales and expenses. Consider using an accounting software system and the receipt capture app that comes with it. For example, Xero and Hubdoc 

• Don’t ignore the threshold even if you’re not far off  

• Separate the GST collected from sales to ensure it’s not accidentally spent  

• Don’t leave things until tax time. BAS is due quarterly 

Ready to Get GST Sorted? 

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