If your business is growing and your turnover is approaching $75,000, registering for GST is not optional — it is a legal requirement. But the process is simpler than most business owners expect, and getting it right from the start saves you from costly mistakes down the track.

In this guide, we walk you through exactly who needs to register for GST in Australia, when you need to do it, and the step-by-step process for getting registered. We also cover what happens after registration and the consequences of registering late.

What Is GST in Australia?

The Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. It was introduced on 1 July 2000 and replaced a number of older state and federal taxes.

When your business is registered for GST, you collect GST on taxable sales and pay it to the ATO. You can also claim credits for the GST you pay on your business purchases — this is called an input tax credit. The difference between what you collect and what you pay is either remitted to the ATO or refunded to you, depending on your trading position.

Not everything is subject to GST. Some supplies are GST-free (such as most basic food, medical services, and exports) and some are input-taxed (such as financial services and residential rent). Understanding which category your sales fall into is important for completing your Business Activity Statement (BAS) correctly.

Who Needs to Register for GST?

You must register for GST if your business meets any of the following conditions:

• Your annual GST turnover is $75,000 or more (or is likely to be)
• You are a not-for-profit organisation with an annual GST turnover of $150,000 or more
• You provide taxi, limousine, or ride-sourcing services — regardless of your turnover
• You want to claim fuel tax credits for your business activities
• You are a non-resident business that makes sales connected with Australia

Your GST turnover is your gross business income — that is, all your business sales and income before any deductions. It does not include input-taxed sales (such as interest income or residential rental income), nor does it include GST you have collected. If your turnover is currently below $75,000 but you expect it to cross that threshold within the next 12 months, you should register now rather than wait until you exceed it.

If your turnover is under $75,000, you are not required to register — but you may choose to register voluntarily (more on this below).

When Do You Need to Register?

If you have already exceeded the $75,000 threshold, you must register within 21 days. Waiting any longer than this is considered late registration and can result in penalties and interest on any GST you should have collected but didn’t.

If you anticipate crossing the threshold in the next 12 months based on your current revenue trajectory, you should register before you exceed it. The ATO looks at your GST turnover on a rolling 12-month basis — both the prior 12 months and the projected next 12 months — so this is not a one-time check.

How to Register for GST in Australia: Step by Step

There are three ways to register for GST in Australia:

Option 1: Register Online Through the ATO

The fastest and most common method is to register online via the ATO’s Business Portal or through myGovID. Here is the process:

1. Log in to the ATO Online Services for Business portal using your myGovID
2. Navigate to “Manage registrations”
3. Select “Register for GST”
4. Complete the online form — you will need your ABN, business details, and estimated turnover
5. Select your preferred reporting period (monthly, quarterly, or annually)
6. Submit your application

Most applications are processed within a few business days. You will receive confirmation via mail or the portal once your GST registration is active, including the date your registration takes effect.

Option 2: Register Through Your Tax Agent or Accountant

If you work with an accountant or registered tax agent, they can register your business for GST on your behalf using the Tax Agent Portal. This is the approach we use for our clients at Pinnacle — it ensures the registration is set up correctly, with the right reporting period and start date, and integrated into your broader tax structure from the outset.

Option 3: Register by Phone or Post

You can also register by calling the ATO on 13 28 66 or by sending a completed registration form by post. These options take longer and are rarely used by businesses, but they are available if online access is not an option.

What You Need Before You Register

Before starting your GST registration, have the following information ready:

• Your Australian Business Number (ABN) — you need an ABN before you can register for GST
• Your business name and contact details
• Your business structure (sole trader, company, partnership, trust)
• Your estimated annual turnover from business activities
• Your preferred GST reporting period (monthly, quarterly, or annual)
• Your bank account details for GST refunds

If you do not yet have an ABN, you will need to apply for one first through the Australian Business Register.

Want to make sure your GST registration is set up correctly from day one?
At Pinnacle, we handle GST registration as part of getting new businesses structured properly — and we make sure your BAS obligations, reporting period, and cash accounting method are all set up to suit how your business actually runs. Book a consultation today.

Choosing Your GST Reporting Period

When you register for GST, you will need to choose how often you report and pay GST. There are three options:

• Monthly: Required if your annual GST turnover is $20 million or more. Optional for smaller businesses that want more frequent reconciliation of their GST position
• Quarterly: The most common option for small businesses with turnover under $20 million. Gives you a reasonable balance between staying on top of obligations and minimising admin
• Annually: Available to businesses with a GST turnover under $75,000 who voluntarily registered for GST, or businesses that pay their income tax using Pay As You Go instalments

For most small and medium businesses, quarterly reporting is the best fit. It keeps you regularly in touch with your GST position without the burden of monthly lodgements.

What Happens After You Register for GST?

Once your GST registration is active, there are a number of ongoing obligations you need to be aware of.

Issue Tax Invoices

For any taxable sale over $82.50 (including GST), you are required to issue a tax invoice if your customer asks for one. Tax invoices must include specific information such as your ABN, the date, a description of the goods or services, the GST amount (or a statement that GST is included in the total), and your business name.

Lodge Business Activity Statements (BAS)

Your BAS is the form you use to report and pay your GST to the ATO. It also covers other tax obligations such as PAYG withholding and PAYG instalments. Your BAS will be due in line with your chosen reporting period — typically 28 days after the end of each quarter (or month, for monthly reporters).

If you use an accountant or BAS agent, they can lodge your BAS on your behalf. Registered tax agents typically receive extended lodgement deadlines, which can ease the pressure around quarterly due dates.

Keep Records

You must keep records of all transactions that are relevant to your GST obligations for at least five years. This includes tax invoices, receipts, bank statements, and BAS lodgements. Accounting software such as Xero makes this significantly easier by automatically tracking GST codes on transactions.

Should You Register Voluntarily?

If your turnover is below $75,000, you are not required to register — but there are situations where voluntary registration makes sense:

• Your customers are businesses (B2B) that claim input tax credits — being GST-registered makes you more competitive because your clients can claim back the GST on your invoices
• You have significant GST-inclusive purchases and want to claim input tax credits to reduce your costs
• Your turnover is growing and you expect to cross the threshold within the next 12 months
• You want to look more established and professional to business customers

The downside of voluntary registration is that you take on the compliance burden of lodging a BAS each period. If you are a very small sole trader with low-value consumer clients, the admin may not be worth the benefit.

What Are the Consequences of Registering for GST Late?

If you cross the $75,000 threshold and fail to register within 21 days, the ATO can assess you for GST on all taxable sales you made from the date you were required to register. This means you may owe GST on revenue you have already received — revenue from which you never collected GST from your customers.

The ATO may also apply a failure-to-lodge penalty and general interest charge (GIC) on any unpaid GST. In practice, these amounts can be significant if registration has been delayed by months or years.

If you have been trading above the threshold without registering, the best course of action is to register as soon as possible and speak with a registered tax agent about how to address the period of non-compliance. In many cases, the ATO will work with you if you come forward voluntarily rather than waiting to be caught.

GST Registration for Specific Situations

Rideshare and Taxi Drivers

If you provide ride-sourcing services (Uber, DiDi, Ola, etc.) or operate a taxi or limousine, you must register for GST regardless of your income. The normal $75,000 threshold does not apply to these activities. This has been a requirement since July 2015 and applies to anyone providing these services in Australia.

Non-Resident Businesses

Overseas businesses that make sales to Australian consumers (B2C) may be required to register for GST if their annual Australian turnover meets or exceeds $75,000. This includes digital products and services sold to Australian consumers by overseas suppliers. The rules around non-resident GST obligations are complex and have been updated several times since 2017 — if you are a non-resident business, specific advice is strongly recommended.

Businesses Buying a Going Concern

If you are buying a business as a going concern and the seller is registered for GST, the sale may be GST-free if certain conditions are met — both parties must be registered for GST, the agreement must record that the sale is of a going concern, and the seller must supply everything necessary to continue the enterprise. Getting this right at the time of purchase is important — if the going concern exemption does not apply, GST of 10% is added to the purchase price.

Frequently Asked Questions

How long does GST registration take in Australia?

Online GST registration via the ATO portal typically takes a few business days. In some cases it can be processed within 24 hours, while in others it may take up to 10 business days. If you register through a tax agent, the process is the same timeline but handled on your behalf.

Do I need to register for GST as a sole trader?

Yes, if your annual turnover meets or exceeds $75,000 (or $150,000 for not-for-profits), you must register for GST regardless of your business structure. Sole traders, companies, partnerships, and trusts all have the same GST registration obligations based on turnover.

Can I backdate my GST registration?

Yes. If you crossed the $75,000 threshold some time ago without registering, your GST registration can be backdated to the date you first became liable. Backdating means you will need to account for GST on sales made during the unregistered period — but you can also claim input tax credits for GST paid on purchases during that same period. It is generally better to come forward voluntarily and get this sorted with the help of a tax agent.

What is the GST registration threshold in Australia?

The standard GST registration threshold is $75,000 in annual GST turnover for most businesses, and $150,000 for not-for-profit organisations. Taxi, limousine, and ride-sourcing drivers must register regardless of turnover. The threshold applies to your current 12-month turnover and your projected next 12-month turnover — if either exceeds the limit, registration is compulsory.

Do I charge GST on all my sales?

Not necessarily. Once registered, you charge GST on taxable supplies only. Some supplies are GST-free (including most basic food, certain medical services, and exports) and some are input-taxed (such as residential rent and most financial services). You do not charge GST on these categories, but you also cannot claim input tax credits on related purchases. Your accountant can help you classify your supplies correctly.

How do I cancel my GST registration?

If your turnover falls below $75,000 and is expected to remain below that threshold, you can apply to cancel your GST registration. You can do this online via the ATO portal or through your tax agent. You must cancel within 21 days of becoming aware that your turnover will remain below the threshold — the same 21-day rule applies in reverse. Note that cancelling GST registration may require you to pay GST on assets you are still holding at cancellation.

General Advice Warning: The information provided in this article is general in nature and does not constitute personal financial, taxation, or legal advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before acting on this information, you should consider its appropriateness having regard to your own circumstances and seek professional advice from a qualified accountant or tax adviser.

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