Registering for GST

As a business grows, it starts to handle more money matters. You’ll find yourself sending out invoices, receiving payments, and spending more on various things, which means you’ll need to think beyond just your daily work.

This is often when business owners first hear about GST, or Goods and Services Tax. In Australia, GST is a 10% tax added to most goods and services that businesses sell. While businesses collect this tax from customers, they are also responsible for managing it. This creates new tasks related to pricing products, sending out invoices, keeping records, and reporting these transactions.

For many business owners, especially those just starting out, GST can seem confusing or even daunting. It’s easy to think, “I’ll deal with that later.” However, knowing when GST applies and what it means to register for it can help you avoid costly errors down the line. Understanding these basics now can save you a lot of stress later.

When GST registration becomes necessary

You must register for GST if your business meets certain conditions. The most common is turnover.

If your business:

• Turns over $75,000 or more in any 12 months, you are required to register for GST
• Is a non-profit organisation with a turnover of $150,000 or more, GST registration is required
  

 There are also situations where GST registration is required regardless of turnover, such as: 

• Providing taxi or limousine travel for a fare, including ride-sourcing services
• Wanting to claim fuel tax credits for your business

 If none of these apply, registering for GST is optional, but that does not mean it is unnecessary. 

Why do some businesses choose to register early?

Even when GST registration isn’t mandatory, some business owners choose to register because it can:

• Make the business look more established to clients or partners
• Allow you to claim GST credits on business purchases
• Align with tender, contract, or funding requirements
• Avoid a rushed registration if turnover grows quickly

However, registering early also means taking on extra reporting and compliance obligations. That’s why it’s important to decide with clear information, not pressure or guesswork.

What registering for GST involves

Registering for GST means:

• Adding GST to your prices (where applicable)
• Issuing tax invoices that meet GST requirements
• Keeping accurate financial records
• Reporting GST through your Business Activity Statement (BAS)
• Paying GST collected to the Australian Taxation Office, minus any GST credits you’re entitled to claim

This does not require you to be an accountant, but it does mean that appropriate systems should be in place to manage GST duties properly.

Getting the right guidance

The official GST registration process and guidance is provided by Registering for GST | Australian Taxation Office, which explains:

• When GST registration is required
• When it’s optional
• How to register
• What your obligations are once registered

The ATO walks you through this step by step, using clear, government-approved information so you can be confident you’re doing the right thing for your business.

How to register

Once you have an ABN, you can register for GST:

• via Online services for business
• by phone on 13 28 66
• through your registered tax agent or BAS agent
• GST registration details, including the date your registration is effective
• ABN details if you haven’t already received them.

The ATO will notify you in writing of your:

Once registered for GST, you need to lodge a business activity statement (BAS).