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frenchieduggan(Newbie)Newbie
10 May 2024

I am newly self employed (construction/civils) and have obtained an ABN with myself as the Sole Trader. It is likely I will earn over $75k for 2024-2025. When do I need to start paying GST? If customer wants to pay me $60/hour (for example) how do I factor in GST? Don’t think I can really add tax on top of what they are willing to pay for hourly rate. So am guessing I then have to look at it as earning $54.56/hour so I can add $5.46 tax/hour to cover the GST? I hope this makes sense. Sorry am new to all of this so any information is much appreciated. Many thanks

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1,804 views
1 replies

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Most helpful replyATO Certified Response

CaroATO(Community Support)Community Support
ATO Certified Response15 May 2024

Hi @frenchieduggan,


  1. Once your GST turnover reaches $75,000 you'll need to register and charge GST.
  2. The way GST works is, you charge your hourly rate and then add GST on top. It's a tax your customers pay for the goods and services you provide.

When you write your tax invoices for your customers there're items you must include. You can find out more info on our website.


A great tip is to have great record keeping habits. This'll make it easier for you when it comes time to lodge your tax return and possible business activity statements, (BAS).

All replies

Most helpful replyATO Certified Response

CaroATO(Community Support)Community Support
ATO Certified Response15 May 2024

Hi @frenchieduggan,


  1. Once your GST turnover reaches $75,000 you'll need to register and charge GST.
  2. The way GST works is, you charge your hourly rate and then add GST on top. It's a tax your customers pay for the goods and services you provide.

When you write your tax invoices for your customers there're items you must include. You can find out more info on our website.


A great tip is to have great record keeping habits. This'll make it easier for you when it comes time to lodge your tax return and possible business activity statements, (BAS).

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When do I start paying GST? If customer wants to pay me $60/hour how do I factor in GST? | ATO Community