Do I Need to Register for GST in Australia? The 2026 Guide
This is one of the most searched business questions in Australia.
Every new business owner hits this moment. Your revenue is growing and you are not sure whether you have crossed the line yet.
Here is the plain-English answer.
What Is GST?
GST stands for Goods and Services Tax.
It is a 10% tax on most goods and services sold in Australia. When you are registered, you collect GST from your customers and send it to the ATO.
You also claim back the GST you paid on your business expenses. This is called an input tax credit.
The $75,000 Threshold
You must register for GST when your GST turnover reaches $75,000.
This is not your profit. It is your gross income from sales before expenses.
Registration becomes compulsory once your GST turnover reaches $75,000. You must register within 21 days of knowing your turnover will exceed the threshold.
Not-for-profit organizations have a higher threshold of $150,000.
The 21-Day Rule You Cannot Miss
Once your business crosses the $75,000 threshold, you have just 21 days to register. The ATO can backdate the registration, leaving you liable for GST you never collected.
This is the part that catches growing businesses off guard.
You could have sold $80,000 worth of services without charging GST. Then the ATO backdates your registration. Suddenly you owe GST on those sales even though you never collected it.
Monitor your turnover monthly when you are approaching the threshold.
When You Must Register from Day One
Some businesses must register for GST immediately regardless of turnover.
Taxi, limousine, and ride-sourcing services must register for GST from day one regardless of income.
If you are starting a business that you expect to exceed $75,000 in its first year, you should register before you start trading.
Voluntary Registration Under $75,000
You can register for GST voluntarily even if your turnover is under $75,000.
This makes sense if you have significant business expenses with GST included. Registering means you can claim those credits back.
It also makes your business look more established. Most B2B clients expect to receive tax invoices with GST.
The downside is extra administration you must lodge BAS and charge GST on your sales.
How to Register
You need an ABN before you can register for GST. Registration can be completed online via the ATO through GST online services or through a registered tax agent.
The process takes around 10 minutes online. You will need your ABN, your TFN, and your business details.
When you register, you choose how often to lodge your BAS monthly or quarterly. Most small businesses choose quarterly.
What Happens After You Register
Once registered, you must do three things.
First, add GST to your prices. If you charged $100 before, you now charge $110 the extra $10 goes to the ATO.
Second, issue tax invoices for sales over $82.50. A tax invoice must show your ABN, the GST amount, and a description of the goods or services.
Third, lodge a BAS regularly. Your BAS reports the GST you collected and the GST you paid on expenses. The difference goes to the ATO or comes back to you as a refund.
What Counts as Your GST Turnover?
Your GST turnover is calculated on a rolling 12-month basis.
This is not just the financial year it is any 12-month period. If your sales in the past 12 months have hit $75,000, you are over the threshold even if your financial year total has not yet reached it.
Some sales do not count toward your GST turnover. These include input-taxed sales like residential rent and some financial services.
What Happens If You Do Not Register
Failing to register carries significant consequences. You will be liable for GST on all sales made from the date you should have been registered 1/11th of your total sales income. The ATO can also impose a failure-to-lodge penalty for each BAS that was due, plus interest on outstanding amounts. Do not wait until the end of the financial year to check your turnover. Check it monthly.
GST and Your Payroll
If your business has staff, GST and payroll operate separately.
Wages are not subject to GST. But the services of your bookkeeper or payroll provider are so you can claim a GST credit on their fees.
Your BAS includes both your GST obligations and your PAYG withholding obligations. Getting both right matters.
Frequently Asked Questions
Does GST apply to all sales? No. Some sales are GST-free fresh food, most medical services, and some educational supplies. Others are input-taxed, like residential rent.
Do I charge GST to overseas customers? Exports of goods are generally GST-free. Services to overseas customers can be complex check with your accountant.
Can I cancel my GST registration? Yes, if your turnover drops below $75,000 and you no longer expect to reach it.
What is a tax invoice? A tax invoice is a receipt that shows the GST component of the sale. It must include your ABN, a description of the supply, the GST amount, and the total price.
How do I lodge my BAS? Through your accounting software, through myGovID online, or through a registered BAS agent.
Need Help Staying on Top of GST and Payroll?
Managing GST, BAS, and payroll at the same time takes real administration.
At Edulink Payroll Services, we help small and medium businesses across Campbelltown and greater Sydney stay compliant year-round payroll, super, STP reporting, and more.
Edulink Payroll Services charges $750 per year, per employee fixed pricing, no surprises.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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