How Do You Know If You Need to Be Registered for GST in Australia?

If you’re running a business in Australia, it’s important to know whether you need to register for Goods and Services Tax (GST).

This article will explain in simple terms how GST works and how to know if registration is necessary for your business.

What is GST?

GST (Goods and Services Tax) is a 10% tax on most goods, services, and other items sold or consumed in Australia. It’s collected by businesses on behalf of the Australian Taxation Office (ATO).

When you’re registered for GST, you must include GST in the price of your taxable sales, complete regular Business Activity Statements (BAS), and pay the GST collected to the ATO.

You can also claim GST credits for the GST included in the price of goods and services your business buys.

When Do You Need to Register for GST?

You must register for GST if:

1. Your business has a GST turnover of $75,000 or more
   • GST turnover is your gross income from all business activities, excluding GST.
   • This threshold applies to most businesses and sole traders.
   • Once you go over this threshold — or if you expect to — you must register within 21 days.
2. You’re a non-profit organisation and your turnover is $150,000 or more
   • Non-profit organisations have a higher threshold, but the same rules apply once that limit is reached.
3. You provide taxi or ride-sourcing services (like Uber or Ola)
   • Regardless of how much you earn, if you drive for a rideshare or taxi service, you must register for GST from the first dollar earned.
4. You want to claim fuel tax credits
   • Businesses that use fuel for eligible activities can claim credits, but only if registered for GST.

Should You Register Voluntarily?

Even if you’re not required to register, you can choose to register voluntarily. Some benefits include:

• Being able to claim GST credits on business purchases.
  
• Appearing more professional or established to customers and clients.
  
• Being ready for growth if you expect your income to rise.
  

However, voluntary registration means more paperwork. You’ll need to charge GST on sales, lodge BAS statements, and manage GST reporting regularly.

How Do You Register?

Registering for GST is easy. You can do it:

• Online through the ATO website,
• Through your accountant or registered BAS agent,
• Or by calling the ATO directly.
  

You’ll need an Australian Business Number (ABN) to register, so if you haven’t already got one, that will be your first step.

In Summary

Ask yourself the following:

• Do I earn (or expect to earn) over $75,000 per year?
• Am I providing ride-sourcing or taxi services?
• Am I a non-profit earning over $150,000?
• Do I want to claim fuel tax credits?

If you answered yes to any of the above, you must register for GST.

Still unsure? Give us a call at Oculus Group Accountants for personalised advice.

Getting your GST obligations right from the start can save you stress and help your business run more smoothly.