GST Registration in Australia: When You Must Register and How

GST Registration in Australia: When You Must Register and How

Goods and Services Tax (GST) is a 10% tax on most goods, services, and other items sold or consumed in Australia. It is a broad-based tax, which means it applies to almost everything — from professional services and software to physical products and construction work. If you run a business of any size, understanding your GST obligations is essential.

When Must You Register for GST?

GST registration is mandatory in the following circumstances:

  • Your GST turnover is $75,000 or more in a 12-month period (either in the current year or projected for the next 12 months). Turnover means your gross business income, not profit.
  • Your GST turnover is $150,000 or more if you are a non-profit organisation
  • You provide taxi or ride-sharing services — Uber drivers, taxi drivers, and other ride-share operators must register for GST regardless of their turnover
  • You want to claim fuel tax credits — if your business uses fuel in certain activities (e.g., heavy vehicles, agriculture, mining), you must be registered for GST to access these credits

If you are close to the $75,000 threshold, you should monitor your turnover carefully. Once you exceed it — even briefly — you are required to register within 21 days.

Benefits of Voluntary GST Registration

Even if your turnover is under $75,000, you may choose to register for GST voluntarily. There are good reasons to do so:

  • Claim GST credits on business purchases — you can recover the 10% GST you pay on your business expenses, reducing your overall costs
  • Professional appearance — some larger clients and government agencies prefer to deal with GST-registered suppliers
  • Required by some clients — enterprise clients may require their suppliers to be GST-registered
  • Useful if your input costs are significant — if you spend a lot on GST-inclusive business expenses, voluntary registration lets you reclaim that GST

The main trade-off is the additional compliance burden: you must issue tax invoices, lodge Business Activity Statements (BAS), and remit GST collected to the ATO.

How to Register

Registering for GST is straightforward and free:

  • Online via business.gov.au — the simplest option for most businesses
  • Via myGovID and the ATO business portal — if you have a myGovID linked to your ABN
  • Through a registered tax agent or BAS agent — they can register on your behalf and advise on the appropriate reporting period
  • By phone — call the ATO on 13 28 66

When registering, you will need to provide your ABN, business details, and choose a reporting period (monthly, quarterly, or annual). Registration takes effect from the date you request or a future date you nominate.

What Happens After Registration

Once you are registered for GST, you have ongoing obligations:

  • Issue tax invoices — for all taxable supplies over $82.50, you must provide a tax invoice that shows the GST amount and your ABN
  • Lodge BAS regularly — your Business Activity Statement reports the GST you collected on sales and the GST credits you are claiming on purchases
  • Remit GST to the ATO — the net GST (collected minus credits) is paid when you lodge your BAS
  • Keep records — maintain records of all sales, purchases, and tax invoices for at least 5 years

Claiming GST Credits (Input Tax Credits)

One of the key benefits of GST registration is the ability to claim back the GST you paid on business purchases. These are called input tax credits.

To claim an input tax credit:

  • The purchase must be for a business purpose (not personal use)
  • The purchase must be a taxable supply (some things like residential rent and basic food are GST-free)
  • You must have a valid tax invoice from the supplier for purchases over $82.50
  • The credit is claimed in the GST section of your BAS

You can apportion claims if a purchase is used partly for business and partly for personal purposes.

Cancelling GST Registration

If your circumstances change and you want to cancel your GST registration, you can do so if your turnover drops below $75,000 (unless you provide ride-sharing or taxi services):

  • Notify the ATO within 21 days of deciding to cancel
  • Lodge a final BAS for the period from your last BAS to the cancellation date
  • Account for GST on assets on hand — if you claimed GST credits when you purchased assets and you still hold those assets at cancellation, you may have a GST obligation on their value
  • Cancellation can be done online at the ATO business portal or by phone

Cancelling GST registration does not cancel your ABN — these are separate registrations.

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