You must register for GST when your business’s GST turnover reaches or is likely to reach $75,000 in a 12-month period. For non-profit organisations, the threshold is $150,000. Ride-share and taxi drivers are required to register for GST regardless of turnover. If you are below the threshold, registration is optional — but there are cases where volunteering to register makes sense.
The $75,000 GST Turnover Threshold
“GST turnover” is not the same as profit. It is the total value of your taxable and GST-free sales — before deducting expenses. Input-taxed supplies (such as residential rent) are excluded from your GST turnover calculation.
The ATO requires you to monitor two periods:
- Current GST turnover — your actual GST turnover in the last 12 months
- Projected GST turnover — your expected GST turnover in the next 12 months
If either figure reaches $75,000, you must register. You have 21 days from the date you become aware that your turnover will reach the threshold to apply for registration.
Worked Example
A graphic designer earns $5,500/month from clients. Over 12 months that is $66,000 — below the threshold. In November, they win a new contract worth $15,000. Their projected turnover for the next 12 months now exceeds $75,000. They must register within 21 days of securing that contract.
Mandatory Registration — Special Cases
Ride-Share and Taxi Drivers
Drivers who provide taxi travel or ride-sourcing services (Uber, DiDi, Ola) must register for GST from the first dollar of income, regardless of turnover. This is a specific rule in the GST Act and applies even if you drive part-time or casually.
Other Mandatory Scenarios
- You are operating an enterprise and expect to exceed $75,000 in the next 12 months
- You are taking over a going concern that is already registered
- You are a company that provides enterprise-related supplies and you want input tax credits
Voluntary Registration Below the Threshold
You can choose to register even if your turnover is below $75,000. This may be advantageous if:
- Most of your customers are GST-registered businesses — they can claim back the GST you charge, so charging GST is neutral for them. Meanwhile, you can claim input tax credits on your business purchases.
- You have significant business inputs with GST — registering lets you recover those credits.
If you voluntarily register, you must comply with all GST obligations — charging GST, lodging BAS, and keeping records — for at least 12 months before you can cancel.
When Voluntary Registration May Not Help
If most of your customers are end consumers (individuals who can’t claim credits), adding GST to your prices effectively makes you 10% more expensive. In this case, staying unregistered may be commercially preferable until the threshold applies.
What Happens When You Register
Once registered:
- You must charge 10% GST on your taxable supplies
- You must issue valid tax invoices for sales over $82.50 (incl. GST)
- You must lodge Business Activity Statements (BAS) — monthly, quarterly, or annually
- You can claim input tax credits for GST paid on business purchases
- You must keep GST records for at least 5 years
How to Register
You can register for GST:
- When applying for your ABN (Australian Business Number) via abr.gov.au
- Separately through the ATO Business Portal or your myGov business account
- Through a registered tax agent or BAS agent
See How to Register for GST for step-by-step instructions.
GST Turnover vs Income — Key Distinction
| Included in GST turnover | Excluded from GST turnover | |
|---|---|---|
| Taxable sales | ✅ | |
| GST-free sales (exports, basic food) | ✅ | |
| Input-taxed sales (residential rent) | ✅ | |
| Private sales (non-business) | ✅ | |
| Capital asset sales (in certain circumstances) | ✅ |
Related Articles
- GST Australia Explained
- How to Register for GST
- BAS Explained
- Sole Trader Tax Australia
- GST and Business Tax hub
Frequently Asked Questions
I earn $80,000 but half is from residential rent — do I need to register? Residential rent is input-taxed and excluded from your GST turnover calculation. If your GST turnover (non-rent income) is under $75,000, you are not required to register. Check with a tax agent if your mix of income types is complex.
If I register voluntarily, can I cancel later? Yes, but you must stay registered for at least 12 months if you registered voluntarily. After 12 months, you can cancel if your current and projected GST turnover will remain below $75,000.
Does the $75,000 threshold apply per business or per ABN? It applies to each separate business entity. If you operate two separate businesses under two ABNs, each is assessed independently. If you operate multiple activities under a single ABN, the combined turnover applies.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent or BAS agent. Find one through the Tax Practitioners Board register.