Goods and Services Tax (GST) registration is a crucial step for many Australian businesses, but the rules around thresholds, timing and process can be confusing if you are just starting out. Understanding when you must register, when you may choose to register voluntarily, and how to do it correctly will help you stay compliant and avoid unexpected tax bills or penalties later on.
This guide walks through GST registration requirements in Australia in plain English and includes trusted external resources—such as official ATO pages, education modules and specialist tax guides—that you can refer to for more detailed information.
1. What is GST and who does it apply to?
Goods and Services Tax (GST) is a 10% broad‑based tax on most goods, services and other items sold or consumed in Australia. It applies to businesses of all sizes—sole traders, companies, partnerships, trusts and some non‑profits—once they meet specific turnover thresholds or operate in certain GST‑sensitive industries.
GST is collected by businesses on behalf of the government: you charge GST on taxable sales and then claim credits for the GST included in your business purchases. The Australian Taxation Office (ATO) administers GST, including registration, reporting and enforcement.
If you want a simple introduction to how GST works in everyday small‑business situations, start with the Small Business “Tax, Super + You” module Goods and services tax (GST) obligations.
2. When GST registration is mandatory
Not every business needs to register for GST immediately, but penalties can apply if you fail to register when you are required to. The key test is your GST turnover, not your profit.
Thresholds based on GST turnover
You must register for GST if:
- Your current or projected annual GST turnover is AUD 75,000 or more, or
- You operate a non‑profit organisation and your GST turnover is AUD 150,000 or more.
GST turnover is your gross business income (excluding GST) from all enterprises you run under your ABN. You reach the threshold if either:
- Your current GST turnover (current month plus the previous 11 months) is at or above the threshold, or
- Your projected GST turnover (current month plus the next 11 months) is likely to reach the threshold.
Once you meet or expect to meet the threshold, you must register within 21 days. The ATO explains these rules in detail on its official Registering for GST page, including examples of how to calculate turnover.
For a more example‑driven explanation of turnover and timing, Agilis CA’s article Does your business need to register for GST? is a helpful advisory‑style guide.
Special rule for taxis and ride‑sharing
Some industries must register for GST from the first dollar of income. If you provide taxi travel, limousine or ride‑sourcing services, you must be registered for GST regardless of your turnover.
The ATO highlights this rule in its GST guidance, and Stripe’s explainer GST registration in Australia explained clearly summarises how it affects rideshare drivers and related services.
What if your supplies are GST‑free?
Even if most of your sales are GST‑free (for example, some health, education or basic food items), you generally still need to register once your GST turnover exceeds the 75,000 AUD threshold. In an ATO community Q&A titled “Do I have to register for GST if my services are GST‑free?”, the ATO confirms that the threshold test still applies—even if much of your income will be reported as GST‑free on your BAS.
3. Voluntary GST registration
You can choose to register voluntarily for GST even if your turnover is below the threshold. Voluntary registration can be beneficial if you:
- Have significant business expenses with GST and want to claim input tax credits.
- Mostly sell to other GST‑registered businesses (who can claim the GST you charge).
- Want to signal that you are “business‑grade” to corporate clients or government agencies.
However, voluntary registration also means you must:
- Charge 10% GST on taxable supplies.
- Lodge Business Activity Statements (BAS), usually quarterly.
- Maintain more detailed records to support your BAS and GST claims.
Stripe outlines the pros and cons of voluntary registration in its guide GST rules for small businesses in Australia: a guide, including examples of how GST affects pricing and cash flow. For sole traders, the Sole Trader GST Registration Australia 2025 Guide explains when voluntary registration makes sense and how it impacts your BAS workload.
4. GST registration by business type
The core thresholds apply across entities, but the practical impact differs for sole traders, small companies and foreign businesses.
Sole traders and freelancers
Sole traders and freelancers must register for GST once their rolling 12‑month turnover reaches or is expected to reach 75,000 AUD. Many new operators mistakenly only look at financial year totals, but the test applies to any 12‑month period, not just July–June.
The Sole Trader GST Registration Australia 2025 Guide breaks down how to monitor your turnover, decide when to register, and what it means for your invoices and BAS as a sole trader.
Small companies, partnerships and trusts
Companies, partnerships and trusts also use the 75,000 AUD / 150,000 AUD thresholds, but turnover is measured across all activities under each ABN. If you run multiple lines of business or locations under the same ABN, you must include them all when calculating turnover.
The ATO’s Registering for GST page explains how these entities should interpret turnover and what obligations follow registration, such as issuing tax invoices and lodging BAS. The Applying for GST, PAYG and other registrations guide from the Australian Business Register (ABR) adds practical detail about the registration process itself.
Non‑resident and foreign companies
Non‑resident businesses may need to register for GST if they have a sufficient connection with Australia or provide certain supplies to Australian consumers. This can apply even if they do not have a physical presence here.
Foreign companies may need GST registration if they:
- Sell digital products or services directly to Australian consumers.
- Sell low‑value imported goods (A$1,000 or less) to Australian consumers.
- Carry on an enterprise in Australia and meet or exceed the turnover threshold.
The ATO’s How Australian GST works page outlines how GST applies to non‑resident businesses, including important concepts like “carrying on an enterprise” and projected turnover for foreign entities.
Commenda’s guide GST registration in Australia for foreign companies offers a practical checklist for overseas businesses, covering ABN requirements, documentation, application routes and ongoing obligations. For another perspective, VAT IT’s article Australia Foreign Registration and GST explains how foreign entities can register, claim GST credits and stay compliant from abroad.
5. How to register for GST (step by step)
Before registering for GST, your business must have an Australian Business Number (ABN). You can apply for an ABN and GST registration at the same time, or add GST later when you meet the threshold.
Once you have an ABN, the ATO lists several ways to register for GST:
- Online via ATO Online services for business (using myGovID).
- By phone by calling 13 28 66 (or the international number from overseas).
- Through a registered tax or BAS agent, who can register on your behalf.
The official process is explained in detail on the ATO’s Registering for GST page, including what information you need and how your registration date is determined.
If you applied for an ABN via the Australian Business Register, you can follow its instructions in Applying for GST, PAYG and other registrations to add GST registration online.
For more practical, example‑driven guidance, check out:
- Does your business need to register for GST? – Agilis CA’s article explaining thresholds, timing and what happens next.
- GST rules for small businesses in Australia: a guide – Stripe’s small business‑focused overview.
- How do I register for GST? – a free ATO‑supported learning module with step‑by‑step instructions.
6. What happens after you register for GST?
After you register, you must:
- Charge 10% GST on most taxable goods and services you sell.
- Issue tax invoices for taxable sales above the relevant thresholds.
- Lodge regular Business Activity Statements (BAS) to report and pay GST.
- Keep adequate records to substantiate the GST you collect and claim.
BAS frequency and reporting
Your BAS lodgement frequency depends on your turnover and ATO settings:
- Most small businesses lodge quarterly BAS.
- Larger businesses, or those who choose to, may lodge monthly.
- A small number may be allowed to report annually if they meet specific criteria.
Agilis CA notes that once you are registered, you must continue to lodge BAS for as long as you are registered—even if you have little or no activity in a period. The ATO’s BAS section, linked from Registering for GST, outlines how to lodge online, due dates and payment options.
Pricing, cash flow and record keeping
GST registration also affects how you set prices and manage cash flow:
- Decide whether your displayed prices are GST‑inclusive or GST‑exclusive, especially if you sell to consumers.
- Factor in that you will be handing the GST portion of your sales over to the ATO, rather than treating it as income.
- Keep invoices and receipts that show GST clearly so you can claim credits.
The Tax, Super + You modules on GST obligations and record keeping provide practical examples of invoice formats, coding transactions, and using spreadsheets or software to track GST.
7. Penalties, potential changes and best practices
If you fail to register for GST when required, or do not meet your ongoing obligations, the ATO can apply penalties and interest.
Consequences of not registering on time
If you exceed the threshold and do not register within 21 days, the ATO can:
- Backdate your registration to the date you should have been registered.
- Require you to pay GST on sales made since that date, even if you did not charge GST to your customers.
- Apply failure‑to‑register penalties and general interest charges.
Agilis CA’s guide Does your business need to register for GST? sets out these consequences clearly, including scenarios where backdated GST can create major cash flow issues. Stripe’s GST rules for small businesses in Australia article also highlights late‑registration risks.
Policy debate about the GST threshold
From time to time, there are proposals to change the GST registration threshold. For example, a 2025 costing by the Parliamentary Budget Office (PBO) examined the budget impact of increasing the threshold from 75,000 AUD to 250,000 AUD.
The PBO’s brief “GST threshold change” explains the rationale and estimated effects of such a change, although it has not been implemented as of early 2026. Keeping an eye on sources like the PBO and Treasury ensures you are aware of any future shifts in policy that might change your registration obligations.
Best‑practice habits to stay compliant
To stay on top of GST obligations:
- Review your turnover monthly to see if you are nearing the threshold.
- Check your GST registration status annually via ATO Online services or with your adviser.
- Use accounting software that supports GST tracking and BAS lodgement.
- Bookmark key references like Registering for GST and the GST registration learning modules.
The Small Business “Tax, Super + You” platform is particularly helpful for new and growing businesses, with interactive modules and quizzes on GST and other core tax topics.