How to Register for GST in Australia: When You Must and How to Do It

Goods and Services Tax is a 10% tax on most goods and services sold in Australia. Once your business crosses a revenue threshold, or from day one in certain industries, collecting GST, lodging Business Activity Statements, and remitting the difference to the ATO becomes a legal obligation. 

This guide explains when GST registration is compulsory, how the registration process works, what GST-free and input-taxed supplies mean, how to calculate GST correctly, and what your ongoing BAS obligations look like once you are registered.
 

What Is GST and Who Does It Apply To?

GST is a broad-based consumption tax of 10% applied to most goods and services sold or consumed in Australia. It was introduced on 1 July 2000 and is governed by the A New Tax System (Goods and Services Tax) Act 1999.

GST applies to businesses, not consumers directly. Registered businesses collect GST on taxable sales, claim credits for GST paid on business purchases (called input tax credits), and remit the net amount to the ATO via a Business Activity Statement (BAS).

GST applies to sole traders, companies, partnerships, trusts, and not-for-profits once they meet the registration threshold. Individuals selling personal items privately do not need to register.
 

When Is GST Registration Compulsory in Australia?

GST registration is compulsory when any of the following apply:
 

• Your current or projected annual GST turnover is $75,000 or more
• You provide taxi travel or ride-sharing services (Uber, Ola, DiDi), regardless of turnover
• You want to claim fuel tax credits

 
Not-for-profit organisations have a higher threshold of $150,000 before registration becomes compulsory.
 

The $75,000 Turnover Threshold Explained

GST turnover is not the same as profit or taxable income. It is calculated as your gross income from all business activities, before expenses. Specifically, it is the value of your taxable and GST-free supplies, input-taxed supplies and private sales that are excluded from the calculation.

You must register within 21 days of the day you know, or could reasonably expect, that your GST turnover will reach $75,000. The ATO looks at both current turnover (the last 12 months) and projected turnover (the next 12 months). If either exceeds the threshold, registration is required.

Income that does not count toward GST turnover includes wages and salaries from employment, private asset sales, input-taxed supplies such as residential rent, and GST-free supplies such as basic food.

Overseas income from exports does not attract GST (exports are GST-free), but the sale value may still count toward your GST turnover calculation depending on the nature of the supply.

Side income, Airtasker jobs, freelance work, online sales counts toward your GST turnover if it part of a business activity. Income from a hobby generally does not, but the ATO applies specific tests to determine whether an activity constitutes a business.
 

Special Rules: Taxi and Ride-Share Drivers, Not-for-Profits

If you provide taxi travel, including Uber, DiDi, Ola, or any other ride-sharing platform, you must register for GST from your very first fare. There is no $75,000 threshold for this category. This rule applies regardless of whether driving is a full-time occupation or a part-time activity.

Not-for-profit organisations are not required to register until their GST turnover reaches $150,000, giving them considerably more runway before obligations begin.

 
What Happens If You Exceed $75,000 Temporarily?

Temporarily exceeding $75,000 does not automatically exempt you from registration. The ATO requires you to register if you ‘could reasonably expect’ your turnover to remain above the threshold going forward. If the spike is genuinely one-off, for example, you complete a large single project, and your turnover will clearly fall below $75,000 again, you may not need to register, but you should seek advice from H&R Block to confirm your position.

Once registered, you can apply to cancel your GST registration if your turnover drops below $75,000 and is expected to remain below the threshold. Cancellation is not automatic and must be applied for through the ATO or your tax agent.
 

What If You Miss the 21-Day Registration Deadline?

If you should have registered for GST but did not, you may be liable for the GST that should have been collected and remitted during the unregistered period. The ATO can backdate your registration and issue a liability for unpaid GST. Penalties and interest may apply.

Voluntary disclosure, approaching the ATO before they identify the issue, generally results in reduced penalties. H&R Block can help you assess your exposure and manage the registration and any back-lodgement process.

Should You Register for GST Voluntarily?

Businesses below the $75,000 threshold can choose to register voluntarily. Whether this makes financial sense depends on your specific situation.
 

When Voluntary Registration Makes Sense

Voluntary registration is typically beneficial when:
 

• Your business purchases include significant GST — for example, you buy tools, equipment, or materials regularly. Registering allows you to claim input tax credits (GST refunds on those purchases), which can produce a net benefit even if you are not yet at the threshold.
• Your clients are other GST-registered businesses. B2B clients can claim back the GST you charge them, so your price remains effectively the same to them. Adding GST gives you the ability to claim input tax credits without making your pricing less competitive.
• You are a startup with high initial capital expenditure. Input tax credits on setup costs can deliver a meaningful early cash flow benefit.
• You want to project a more established business profile. Being GST-registered signals a certain level of business activity to clients and suppliers.

 

Advantages and Disadvantages of Early GST Registration

Advantages	Disadvantages
Claim input tax credits on business purchases	Must charge customers 10% more (or absorb the cost)
Access to fuel tax credits	Additional compliance obligations (BAS lodgement)
Stronger B2B credibility	Record-keeping requirements increase
Can issue tax invoices from the start	Penalty exposure for late or incorrect BAS
No disruption to operations when the threshold is reached	Accounting costs may increase

 
If you are unsure whether early registration is the right move, H&R Block's Tax & Business Services team can review your situation and give you a clear recommendation.
 

How to Calculate GST in Australia

GST is 10% of the pre-tax price. However, when extracting GST from a GST-inclusive total, the calculation uses 1/11, not 1/10. This is one of the most common points of confusion.
 

Calculation	Formula	Example
Adding GST to a price	Price × 1.1	$200 × 1.1 = $220
GST amount from the GST-inclusive total	Total ÷ 11	$220 ÷ 11 = $20
Price before GST from GST-inclusive	Total × 10 ÷ 11	$220 × 10 ÷ 11 = $200

 
For rounding, the ATO allows rounding to the nearest cent. When a single invoice includes multiple line items, GST is applied to each line and rounded individually, or applied to the total, either method is acceptable provided it is used consistently.
 

GST-Free vs Input-Taxed vs Taxable: What Is the Difference?

Not all supplies are taxable. There are three categories of supply under Australian GST law, and the difference matters significantly for how you lodge your BAS and what credits you can claim.
 

	GST-Free	Input-Taxed	Taxable
GST is charged to customers	No	No	Yes (10%)
Can claim input tax credits (GST on purchases)	Yes	No	Yes
Examples	Fresh food, health, education, exports	Residential rent, financial services	Most goods & services
ATO BAS reporting	Yes, reported as GST-free sales	Yes, reported as input-taxed sales	Yes, full GST reporting

 
Key examples by category:
 

• GST-free: basic food (but not restaurant meals or takeaway), most health services (medical, hospital, dental), most education services, exports of goods and services, childcare
• Input-taxed: residential rent, financial services such as bank charges and interest, and the sale of existing residential properties
• Taxable: most other goods and services, including commercial rent, software, consulting services, construction, and restaurant meals

 
The critical distinction between GST-free and input-taxed supplies is the ability to claim input tax credits. For GST-free supplies, you cannot charge GST to customers, but you can still claim credits for the GST you paid on business purchases that relate to those supplies. For input-taxed supplies, you cannot charge GST, and you cannot claim the input tax credits on related purchases.
 

How to Register for GST in Australia: Step-by-Step

GST registration can be completed online, by phone, or through a registered tax agent. The online option is the fastest and most common.
 

1. Gather your ABN (or apply for one at the same time through the Australian Business Register).
2. Go to abr.gov.au or the ATO Business Portal, or contact H&R Block to register on your behalf.
3. Confirm the date your GST registration should take effect; this can be backdated if required.
4. Select your preferred BAS reporting cycle: quarterly (most common), monthly, or annually (if turnover is under $10 million and you elect to do so).
5. Select your GST accounting method: cash basis (recommended for most small businesses under $10 million turnover) or accruals basis.
6. You will receive written confirmation from the ATO, usually within a few days for online applications.

 
Sole traders without income yet can register for GST at any time if they intend to run a business. Registration before reaching the threshold is voluntary, but it is the same process as compulsory registration.
 

How Long Does GST Registration Take?

Online applications through the ATO Business Portal or ABR website are typically processed within a few days. In some cases, registration is confirmed within 24 hours. Postal applications take longer — allow up to 28 days.

 
Can You Backdate GST Registration?

Yes. You can request a registration date in the past if you should have been registered earlier. This is often necessary when a business has been operating above the threshold without registration. When you backdate registration, you become liable for the GST that should have been collected during that period. H&R Block can help you calculate the exposure and manage the process with the ATO.
 

How GST Works for Different Business Types

Sole Traders and Freelancers

Sole traders and freelancers register for GST as individuals under their ABN. Once registered, they add GST to their invoices and claim input tax credits on business expenses. The GST is reported and remitted via quarterly BAS lodgements.

Freelancers selling services to overseas clients generally provide GST-free exports, provided the client is not in Australia at the time of supply. This means no GST is charged, but input tax credits on related expenses can still be claimed.
 

Ride-Share and Delivery Drivers

Ride-sharing drivers (Uber, DiDi, Ola) must register for and charge GST from their first ride, regardless of income level. Delivery drivers (Uber Eats, DoorDash, Menulog) are treated differently: they are only required to register once their total income from all sources reaches $75,000, because they provide courier services rather than taxi travel.

Both groups must lodge BAS and can claim input tax credits on vehicle expenses, fuel, and platform fees, all of which include GST.
 

eCommerce and Shopify Sellers

Australian eCommerce sellers must register and charge GST once their turnover reaches $75,000. GST applies to sales made to Australian customers. Sales to overseas customers are generally GST-free (exports), provided the goods physically leave Australia.

Marketplaces such as Amazon and eBay may have their own GST obligations in certain circumstances. Non-resident businesses selling digital products or low-value goods to Australian consumers are also required to register for GST in Australia if their turnover exceeds $75,000, under rules introduced in 2017 and 2018.

 
Airbnb Hosts

Short-term accommodation through Airbnb, Stayz, or similar platforms is a taxable supply — unlike long-term residential rental, which is input-taxed. This means Airbnb hosts who exceed $75,000 in turnover must register for GST, charge GST on their rates, and lodge BAS. Hosts below the threshold can register voluntarily to claim input tax credits on cleaning, maintenance, and other property costs.
 

How to Lodge a Business Activity Statement (BAS)

A Business Activity Statement (BAS) is the form used to report and pay your GST obligations to the ATO. It also covers PAYG withholding, PAYG instalments, and other tax obligations depending on your business structure.

BAS can be lodged online through the ATO Business Portal or myGov, through accounting software (Xero, MYOB, QuickBooks), or through a registered BAS agent or tax agent. H&R Block can lodge BAS on your behalf.
 

Quarterly vs Monthly BAS: Which Is Better?

Most small businesses lodge BAS quarterly. Monthly lodgement is compulsory for businesses with a turnover above $20 million, but any business can elect to lodge monthly if they prefer more frequent reconciliation, which some businesses find helpful for cash flow management.

Quarterly lodgement due dates:
 

Quarter	Period covered	Due date (paper)	Due date (online)
Q1	1 July – 30 September	28 October	28 October
Q2	1 October – 31 December	28 February	28 February
Q3	1 January – 31 March	28 April	28 April
Q4	1 April – 30 June	28 July	28 July

   

What Records Do You Need for BAS?

The ATO requires you to keep GST records for five years. For each BAS period you need:
 

• Tax invoices for all taxable sales you made
• Tax invoices for all taxable purchases from suppliers (required to substantiate input tax credit claims)
• Bank statements and receipts for cash transactions
• Any adjustment notes for cancelled or amended transactions
• Records showing which supplies are GST-free or input-taxed

What Happens If BAS Is Late?

Failing to lodge BAS by the due date attracts a Failure to Lodge (FTL) penalty. The ATO calculates this at one penalty unit for every 28 days (or part thereof) that a BAS is overdue, up to a maximum of five penalty units. As of 2024, one penalty unit is $364, meaning maximum FTL penalties reach $1,820 per late BAS.

Interest charges also apply to unpaid GST. The general interest charge (GIC) accrues daily from the due date until payment is received.

If you cannot pay by the due date, contact the ATO before the deadline rather than after; the ATO is far more likely to arrange a payment plan if you approach them proactively. A registered tax agent like H&R Block can manage this communication on your behalf.
 

Can You Amend a BAS?

Yes. If you made an error in a previously lodged BAS, for example, you forgot to include a sale or overclaimed an input tax credit, you can amend it by asking H&R Block to lodge an amendment on your behalf.

Small errors below $10,000 can be corrected in the current BAS period rather than amending the original. Larger errors require a formal amendment to the relevant BAS period.
 

How to Create a GST Invoice

A tax invoice is required for any taxable sale of $82.50 or more (GST-inclusive). Your customer needs a valid tax invoice to claim the input tax credit on the purchase.

For invoices of $1,000 or more, include:
 

• The words 'Tax Invoice' clearly displayed
• Your business name
• Your ABN
• The date of the invoice
• A description of the goods or services supplied
• The GST amount (or a statement that the total includes GST)
• The total price
• The buyer's name or business name and ABN

 
For invoices under $1,000, the buyer's details are not required. All other fields remain the same.
 

Common GST Mistakes and How to Avoid Them

• Treating input-taxed supplies as GST-free
  These are two different categories with different rules. Residential rent is input-taxed — you cannot charge GST and cannot claim input tax credits on related expenses. If you treat it as GST-free instead, your BAS will be incorrect.

• Claiming input tax credits without a valid tax invoice
  The ATO requires a valid tax invoice to support any input tax credit claim. A bank statement or receipt is not sufficient for purchases over $82.50. If you lose an invoice, ask the supplier to reissue it.

• Failing to register when the threshold is crossed
  The ATO's data-matching program cross-references income reports from banks, platforms, and government agencies. Unregistered businesses earning above $75,000 are identified regularly. Voluntary disclosure before discovery reduces penalties.

• Incorrectly calculating GST from a GST-inclusive total
  Using 10% instead of 1/11th to extract GST from a total price results in overclaiming. For example: extracting 10% of $110 gives $11 (incorrect). The correct amount is $110 ÷ 11 = $10.

• Claiming personal expenses as business input tax credits
  Input tax credits are only available for business expenses. Private or domestic purchases, including a portion of mixed-use items like a mobile phone, must be apportioned correctly.