When do you have to register for GST?

As seen in Woopi News April 2025

There is often confusion over when a business needs to register for Goods and Services Tax (GST). If you earn income under an Australian Business Number (ABN) and your annual turnover is $75,000 or more, you need to be registered for GST.

Some small business owners mistakenly think they don’t need to register because their profit is under $75,000. When assessing turnover for the GST threshold, business expenses are ignored. Turnover refers to the income that is received from customers. Once a business’s turnover reaches $75,000, it must register for GST within 21 days of reaching that threshold. Most businesses register on a quarterly basis and lodge Business Activity Statements (BAS) every three months, but there are other options like monthly or annually depending on your circumstances.

There are some circumstances where you are required to register or could voluntarily register where your turnover is below the threshold.

If you provide taxi services or ride-sourcing services, you need to be registered for GST, as there is no turnover threshold for businesses providing this service.

There are some sources of business income that are GST Free, but the business still needs to register for GST if their turnover is over the threshold. For example, if you operate a business that sells fresh fruit and vegetables and the turnover is over $75,000, you must register for GST. As your sales are GST free you will not need to remit GST on your income, but you can claim back the GST included in your business expenses. For this reason, many businesses that sell GST Free goods and services voluntarily register for GST at the beginning so they can claim back the GST in their startup and ongoing expenses.

It is a good idea to check your business income on a regular basis. Talk to your accountant if you think you may exceed the threshold during the financial year, as having to backdate your registration down the track, can be a very costly mistake.