How Do I Know If I Need to Register for GST?
- johnry8
- Sep 2, 2025
- 2 min read
Starting or growing a business can feel overwhelming, especially when it comes to tax. One of the most common questions we get is whether a business needs to register for GST.
Missing the GST registration deadline or not understanding the rules could lead to unnecessary stress, missed claims or penalties from the ATO.
Whether you're a sole trader, freelancer, side hustler or managing a growing business, understanding when and why to register can help you stay compliant and make plans to keep more money in your pocket.
What Is GST and How Does It Work?
GST stands for Goods and Services Tax. It is a 10 percent tax on most goods and services sold in Australia.
If you're registered then you must add GST to your sales, show it on your tax invoices and report the GST you collect & pay through your Business Activity Statement (BAS).
When Do You Need to Register for GST?
You must register for GST if:
Your business has an annual turnover of $75,000 or more
You’re a non-profit organisation with turnover of $150,000 or more
You’re a taxi or rideshare driver, regardless of your turnover
You want to claim GST credits on your business purchases
If you expect to hit these thresholds soon, it’s best to register early. You’re required to register within 21 days of reaching the turnover limit.
What If You’re Below the Threshold?
If your turnover is under $75,000, it is not mandatory to register, but you can register if you choose to.
Some businesses register voluntarily because it allows them to:
Claim back GST on expenses
Present as more established to clients who are GST registered
Avoid the hassle of registering later when they do cross the threshold
Just keep in mind that if you register, you’ll need to include GST in your sales pricing and lodge regular BAS reports.
How to Track Your Turnover
Your turnover includes:
All gross income from sales (not just profit)
Excludes things like sales outside of Australia or capital assets
It’s important to check regularly, especially if your income is growing or seasonal.
Common Mistakes and What to Avoid
Waiting too long to register. If you go over the limit and don’t register on time, the ATO can charge interest and penalties.
Registering too early without understanding the commitment. Once registered, you need to do regular BAS lodgements, even if your earnings are low.
Not updating the ATO. If your circumstances change, like you stop trading or drop below the threshold, you may need to cancel your registration.
Still Unsure if You Should Register for GST?