GST registration is one of the first compliance decisions a growing business faces, and getting the timing right matters — register too late and you can be liable for GST you never charged. Here's exactly when registration is required, when it's optional, and what to do.
What GST registration means
Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. When you're registered, you add GST to your taxable sales, collect it from customers, and pass it to the ATO — while claiming back the GST you pay on business purchases. The reporting happens through your BAS.
The $75,000 threshold (and the exceptions)
According to the ATO, you must register for GST when your GST turnover reaches $75,000 in any rolling 12-month period — looking both at the past 12 months and the projected next 12. There are some specific cases where the rule differs:
| Situation | Must register? |
|---|---|
| Business turnover $75,000+ (12 months) | Yes |
| Non-profit organisation turnover $150,000+ | Yes |
| Taxi, rideshare or ride-sourcing driver | Yes — any turnover |
| Turnover under $75,000 | Optional (voluntary) |
If you expect to cross $75,000, register within 21 days of becoming aware. Confirm the current thresholds with the ATO, as they can change.
How to register
- Make sure you have an ABN — you need one before you can register for GST
- Register for GST through ATO Online services for business (linked with your myGovID), by phone, or through a registered tax or BAS agent
- Choose your reporting cycle — most small businesses report quarterly
- Note your GST registration date; you charge GST on taxable sales from that date
What changes once you're registered
- You add 10% GST to your taxable sales and issue tax invoices
- You can claim GST credits on business purchases (with a valid tax invoice for anything over $82.50)
- You must lodge a BAS each period — even a "nil" one if there's nothing to report
- Your pricing maths changes: GST is 1/11th of a GST-inclusive price
Should you register voluntarily?
Below $75,000 it's your choice. Registering voluntarily lets you claim GST credits on purchases — useful if you're spending heavily on stock or equipment early on, or if your customers are themselves GST-registered businesses. The trade-off is the ongoing obligation to charge GST and lodge BAS. For many low-turnover sole traders selling to consumers, staying unregistered is simpler. We cover the decision in detail in voluntary GST registration below the threshold.
After you register
Once you're registered, the recurring work is keeping your books reconciled and lodging BAS on time. ReconLink imports your statements, categorises transactions automatically, and produces a BAS worksheet with GST on sales and purchases calculated for you. The Solo plan is built for a single self-filing business — see pricing or start free.
Frequently asked questions
What happens if I register for GST late?
If you were required to register and didn't, the ATO can backdate your registration and hold you liable for the GST on sales made since you should have registered — even if you never charged it. That's why crossing $75,000 should trigger registration promptly.
Do I charge GST before I'm registered?
No. You only charge GST from your registration date. Charging GST before you're registered isn't permitted.
Can I cancel my GST registration later?
Yes, if your turnover drops below the threshold and you're not in a must-register category, you can cancel. You'll need to account for GST on certain assets you keep. Confirm the process with the ATO.
This article is general information for Australian small business owners, not tax advice. Confirm current rates, thresholds and registration rules with the ATO or a registered tax or BAS agent for your situation.