In Australia you need to register for GST once your GST turnover reaches 75,000 dollars a year, or when you expect to reach it, and you must register within 21 days of becoming required to. The big exception is taxi and ride-sourcing work, where you must register before your first trip no matter how little you earn.
GST is the moment a side business starts to feel like a real business: new paperwork, a business activity statement and prices that may need rethinking. The rules for when it kicks in are short, but there are a couple of surprises worth knowing before you hit them.
When you must register for GST
| Situation | Register? |
|---|---|
| GST turnover of 75,000 dollars or more | Yes, within 21 days |
| New business expected to reach 75,000 dollars in its first year | Yes |
| Non-profit with GST turnover of 150,000 dollars or more | Yes |
| Taxi, limousine or ride-sourcing driver | Yes, regardless of turnover, before your first trip |
| Want to claim fuel tax credits | Yes |
| Under the threshold with none of the above | Optional |
GST turnover means your gross income from all your businesses, minus GST. You need an ABN before you can register, and you only register once even if you run more than one business.
The ride-sourcing catch
This is the rule that catches new drivers. The ATO treats ride-sourcing as taxi travel for GST, and says the 75,000 dollar threshold doesn't apply. If you drive for a ride-share app, you must have an ABN and be registered for GST before your first trip, even if it's a few hours a week. When you register online, the ATO suggests typing 'taxi ride sourcing' as your business description.
Creators count too
The ATO's own example is Beau, a tap dancer who posts videos and earns a share of advertising revenue from an Australian social media platform through a trust. Once that ad revenue goes over 75,000 dollars, the trust has to register for GST and pay GST on the payments. So if your content income is growing, it's part of your turnover like any other sale.
How to keep track of the threshold
- Each month, add up your gross business income across all businesses, minus any GST.
- Look at the last 12 months and at what you expect over the next 12.
- If you're at or likely to exceed 75,000 dollars, register within 21 days.
- Get your ABN first if you don't already have one.
- Register online, by phone on the ATO business enquiries line, or through a registered tax or BAS agent.
The ATO says to check every month if you're not registered, which sounds fussy but takes two minutes with a spreadsheet.
Registering voluntarily
You can register below the threshold if you want to. Some people do it to claim GST credits on business purchases, or because business customers expect it. The catch is commitment: the ATO says if you choose to register, you generally must stay registered for at least 12 months. And once registered, you lodge a business activity statement, so there's ongoing admin.
What happens after you register
- You charge GST on your taxable sales.
- You lodge a business activity statement (BAS) to report and pay it.
- You can usually claim GST credits on business purchases.
- If your turnover later falls, you can cancel your GST registration if you no longer need it.
If you're late
The ATO says penalties may apply if you fail to register when required. For ride-sourcing, it can back-date your registration and ask you to pay the GST owed on past trips. If you realise you've crossed the line, register now rather than waiting; it's easier to fix early.
A worked threshold check
Say you sell handmade jewellery and also do some freelance photography under the same ABN. GST turnover counts the gross income of all your businesses, so you add both together, leave out any GST, and look at the total for the last 12 months and the next 12. If the jewellery brings in about half the threshold and the photography is growing fast, you may be required to register before either one alone gets there. This is my illustration of how the ATO's rule works, not an ATO example.
The other thing to watch is a big one-off contract. If you're expecting a large job that would take you over 75,000 dollars, the ATO's wording covers turnover you're likely to reach, so plan the registration around it instead of discovering it afterwards.
Pricing tip
Think about your prices before you register. If your customers are mostly consumers, adding GST may mean either raising prices or absorbing it from your margin. Business customers registered for GST can usually claim it back, so it matters less to them. Run the numbers on your top products before the date arrives.
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My verdict
Watch your monthly turnover once you're past halfway to 75,000 dollars, and register within 21 days of needing to. If you drive for a ride-share app, there's no threshold at all: register before you start. For other Australian income questions, see AdSense payments in Australia, TikTok Shop in Australia and what Uber drivers make.
Frequently asked questions
When do I need to register for GST in Australia?
When your GST turnover is 75,000 dollars or more, or you expect it to be, and within 21 days of being required to. Ride-sourcing drivers must register before their first trip.
Do Uber drivers need to register for GST?
Yes. The ATO says ride-sourcing is taxi travel for GST and drivers must register regardless of turnover, before their first trip.
Can I register for GST voluntarily?
Yes, but the ATO says you generally must then stay registered for at least 12 months.
What is GST turnover?
Your gross income from all your businesses, minus GST.
Do I need an ABN to register for GST?
Yes. The ATO says you need an ABN before you register for GST.
How quickly must I register once I'm over the threshold?
Within 21 days of your GST turnover exceeding the threshold, according to the ATO.
What is the GST threshold for non-profits?
150,000 dollars of GST turnover a year.
