If you’re starting a business or side hustle in Australia, you’ll eventually come across Goods and Services Tax (GST). But when is registration required and what does it mean for your ABN?
In this article, we’ll explain:
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GST is a 10% tax added to most goods and services sold in Australia. Businesses collect GST from customers and pass it on to the Australian Taxation Office (ATO).
GST typically applies to:
Not every business needs to register. It depends on your income and the type of business you run. You can learn more from the ATO’s GST registration requirements.
You must register for GST if:
If you expect to reach $75,000 annual turnover, you must register within 21 days.
Even part-time businesses can hit the threshold faster than expected — so it’s important to keep track of your income.
There are a few ways to register:
Once registered for GST, you must charge 10% GST on your taxable sales.
You’ll also need to:
Failing to lodge your BAS or pay GST on time can result in penalties or fines. You can learn more about BAS on the ATO’s BAS page.
You can choose to register for GST voluntarily even if you earn less than $75,000 per year.
Benefits of voluntary registration include:
Keep in mind that once you register, you must continue lodging BAS, even if you earn very little or nothing during that period.
If your sole trader income is growing, it’s important to know when to register for GST and how to manage it properly.
Registering at the right time can help you:
Still need an ABN? Apply through Register My ABN - it takes less than 5 minutes for only $45 incl. GST.