Do I Need to Register for GST? A Plain-English Guide for Aussie Sole Traders
If you've started a side hustle or small business, GST is one of the first questions that comes up. This is general information only. Check ato.gov.au or a registered tax or BAS agent before making decisions.
The short version
- You must register for GST once your GST turnover reaches the registration threshold set by the ATO. Check the ATO website for the current threshold.
- Below the threshold, registration is optional.
- Some businesses, such as taxi and ride-sourcing drivers, need to register regardless of turnover.
How GST works
GST is 10% on most goods and services sold in Australia. Once registered, you generally:
- Add GST to your prices (or include it).
- Claim GST credits for GST included in business purchases.
- Report and pay the difference on your BAS.
Example only: you sell A$1,100 of services including GST, so A$100 is GST. You buy A$330 of supplies including GST, so A$30 is a GST credit. Net GST payable is A$70.
What counts as turnover?
GST turnover is generally your business income, not your profit, and excludes some things like GST-free and input-taxed sales in certain calculations. The ATO has a calculator; use it if you're close to the threshold.
Should you register voluntarily?
Some reasons people do:
- They buy a lot of business supplies and want to claim GST credits.
- Their customers are mostly GST-registered businesses.
Some reasons people don't:
- Their customers are mostly individuals, so adding GST raises prices.
- They'd rather avoid lodging a BAS.
This is a decision to make with a registered agent if you're unsure.
What changes once you register
- You'll need an ABN and to include GST in invoices, issuing tax invoices.
- You'll lodge a BAS, usually quarterly. See BAS due dates.
- You'll need clear records of GST on sales and purchases. A GST tracker helps.
Keep an eye on your turnover
Check your rolling 12-month turnover each month. A simple income tracker makes this a two-minute job.
Keep records sorted all year
See the Australian Tax Time Bundle, the Sole Trader Income & Expense Spreadsheet, or the Sole Trader Tax & BAS Dashboard app.
FAQ
When do I have to register for GST?
When your GST turnover reaches the ATO's registration threshold, or if you're in an industry that must register regardless. Check ato.gov.au.
How do I work out GST on a price?
For a GST-inclusive price, divide by 11. A$110 includes A$10 GST.
Can I register voluntarily?
Yes, registration is optional below the threshold. Talk to a registered agent if unsure.
General information only, not financial or tax advice. Check ato.gov.au or a registered tax agent for your situation.
Try it in an app
Side Hustle Income & Tax Tracker (AU) (A$29, one-off): Track side-hustle income and expenses by Australian financial year, set money aside for tax, and watch the GST turnover threshold.