You need to register for GST if your business makes $75,000 or more a year. If you're a taxi or ride-share driver, you'll need to register regardless of how much you earn. For not-for-profit organisations, the threshold is $150,000.
Whether you need to register for GST depends on the type of business you run and how much you earn.
Generally, if your business makes $75,000 or more a year, you must register for GST. For not-for-profit organisations, the threshold is $150,000.
If you’re a taxi or rideshare driver, then you’ll need to register for GST regardless of how much you earn.
If you’re yet to register for GST, it’s a good idea to keep a close eye on your income. Once you hit the income threshold, you have 21 days to register for GST. If you miss the deadline, you may have to pay GST on sales since the date you should have been registered.
Do I have to pay GST if my turnover is under $75,000?
No – if your annual turnover is less than $75,000, you don’t have to register for GST. But you can choose to register voluntarily if you wish!
If you do register for GST, you will need to charge GST on your sales regardless of your income.
Can I charge GST if I’m not registered?
To make it simple, you can’t charge and collect GST if you are not registered. If you do incorrectly charge GST, then you should reissue a new invoice to your customers and refund any GST amount.
How do I claim GST credits?
If you’re registered for GST, you can claim a credit for any GST included the price you pay for things in your business where the purchases meet certain eligibility criteria this opens in a new window . This is known as a GST credit.
To claim a GST credit, you need to hold a valid tax invoice issued by the supplier (for all purchases over A$82.50).
It’s a good idea to check that your suppliers are registered for GST before claiming any GST credits. You can do this using the ABN Lookup this opens in a new window .
Shutting up shop? You must cancel your GST registration within 21 days of closing your business. You may also need to cancel your GST registration if you restructure your business.
What happens if I estimate my business income for the year will be less than $75k and dont register for GST then the business grows part way through the year and the income ends up being $80k. I obviously need to register for GST once i hit $75k but will i need to pay GST on the full 80k of income for the yr or only the $5k income after registration for GST (i.e the first $75k remains GST exempt even though annual income hit $80l
You would only charge and pay GST on the amounts after you register. So once you hit $75k you register and all your sales after that would have GST on them, meaning you would have to pay GST on that $5,000.
Just to elaborate, you would not itemise GST (and would exclude) in your sales for the first $75K or until you realise you will exceed $75K. Then you would register for GST. Thereafter you would add GST as a line item in your invoices (For remaining $5K). Does that sound right @Gus6?
Hi, I’m a full time employee. My employer pays tax out of my wages as expected.
Recently I have registered an abn for myself and begun earning money which I intend to withhold tax accordingly.
I am not registered for gst with my abn. My question is, do I need to take my salary plus my sole trader earnings into account for the $75000 threshold?
or will I only need to register for gst if I earn more than $75000 outside of my full time job?
The $75,000 GST threshold is based on your GST turnover (gross income from all businesses minus GST). Since it's only your business income included in this calculation, your normal salary and wages would be excluded - you don't pay GST on salary and wages from your employer. There's more info about when you need to register for GST on our website.
