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GST Threshold for Side Hustles in Australia: When You Must Register

If you sell on Etsy, do freelance work, drive for a delivery app or run a small business on the side, you might wonder whether you need to charge GST. In Australia, the key number is the $75,000 GST turnover threshold. This page explains what that means, the important exceptions, and how to track your turnover so you're never caught out.

The $75,000 threshold

Under ATO rules, you generally must register for GST if your business has a GST turnover of $75,000 or more (the threshold for non-profit organisations is higher). GST turnover is your gross business income, not your profit, and the ATO looks at both your current turnover and your projected turnover for the year ahead. You can also choose to register below the threshold.

The ride-sourcing exception

If you provide taxi or ride-sourcing services, like driving passengers for a rideshare app, you must register for GST regardless of turnover. Food delivery is treated differently from passenger transport. Check the ATO website for the current rules for your type of work.

What counts toward GST turnover?

Generally, sales from your business activities count, but there are exclusions, such as certain input-taxed sales and sales not connected with Australia. Wages from an employer do not count toward your business turnover. If you have more than one business activity under the same ABN, the turnover is combined.

Track turnover monthly

The simplest protection is to record every sale and check your rolling 12-month total each month. If you're growing fast, check your projected turnover too. If you're getting close, speak to a registered tax agent before you cross the line, because registering means charging GST, lodging BAS and keeping tax invoices.

Even below the threshold, keep records

Side hustle income is still assessable income, even if you don't register for GST. Keep records of sales and expenses, and set aside a portion of your profit for tax. The ATO requires most records to be kept for five years.

What registering involves

Once registered, you generally include GST in your prices, issue tax invoices, lodge a BAS (often quarterly) and can claim GST credits on business purchases. It's more admin, which is why a tracker that totals your GST each quarter saves real time.

Worked example

Here's an illustrative example. Nat works part time and sells handmade candles online and at markets under her ABN. Each month she adds up her sales for the last 12 months. In March her rolling total is $41,000. By August it's $58,000 because a corporate gift order came in, and two more large orders are booked for the next few months. She works out that her projected turnover for the next 12 months could pass $75,000, even though her current total is under it. That's a sign to act before she crosses the line. She books a session with a registered tax agent to talk about registering for GST, how it affects her prices, and lodging BAS. Meanwhile her partner, who drives for a rideshare app a few nights a week, learns that he needs to be registered for GST regardless of how much he earns. Their figures are made up, but the habit of a monthly turnover check is what keeps you on the right side of the rules.

How to do it: step by step

1. Record every sale from your side hustle with date and amount.
2. Total your last 12 months of sales each month (current GST turnover).
3. Estimate the next 12 months (projected turnover).
4. If either is near $75,000, or you do ride-sourcing, check the ATO rules and talk to a registered tax agent.
5. Keep records of income and expenses for at least five years and set aside money for tax.

Frequently asked questions

General information only, not financial or tax advice.