Do Sole Traders Need to Register for GST?

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:

• What is GST?
• When do sole traders need to register for GST?
• How to register for GST
• What happens after you register?
• Voluntary GST registration

Need to register for an ABN? Get your ABN online with Register My ABN in less than 5 minutes!

1. What is GST?

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:

• Products and physical goods
• Services (e.g. consulting, trades, delivery)
• Digital products and subscriptions

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.

2. When do sole traders need to register for GST?

You must register for GST if:

• Your business earns $75,000 or more per year
• You provide taxi or rideshare services (e.g. Uber or DiDi) - regardless of income
• You choose to voluntarily register for GST benefits

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.

3. How to register for GST

There are a few ways to register:

• Register for GST with your ABN via Register My ABN quickly and easily
• Through your myGov account linked to the ATO
• Via a registered tax agent or accountant

4. What happens after you register?

Once registered for GST, you must charge 10% GST on your taxable sales.

You’ll also need to:

• You’ll need to issue tax invoices that clearly show the GST component
• You’re required to lodge Business Activity Statements (BAS) with the ATO - monthly, quarterly, or annually

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.

5. Voluntary GST registration

You can choose to register for GST voluntarily even if you earn less than $75,000 per year.

Benefits of voluntary registration include:

• Claiming GST credits on eligible business purchases
• Appearing more established and professional to clients
• Avoiding delays if your income grows and you hit the threshold

Keep in mind that once you register, you must continue lodging BAS, even if you earn very little or nothing during that period.

Ready to register for GST?

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:

• Stay compliant with the ATO
• Avoid unnecessary fines
• Claim business tax benefits and scale with confidence

Still need an ABN? Apply through Register My ABN - it takes less than 5 minutes for only $45 incl. GST.