How GST registration usually works
Work backwards from the facts. If your sales are growing or you’re starting a ride‑sourcing/taxi activity, confirm whether you must register and by when. Then choose how you will report and set up your invoicing and software correctly, so your first BAS is accurate.
- Check your GST turnover: your projected or actual business income (excluding GST), not your profit.
- Decide your method: cash suits many small businesses; accrual suits those invoicing on terms with strong bookkeeping.
- Update your pricing and quotes: confirm whether prices are GST‑inclusive or exclusive and update your website, proposals and receipts.
- Set up tax codes and invoice templates in your accounting software so GST is calculated and reported correctly.
If you want a professional to register and configure everything for you, compare our BAS agent services, bookkeeping services and tax accountant pages for scope and turnaround options.
Who must register and when
- Mandatory registration thresholds
- Most businesses: register when GST turnover reaches or is likely to reach $75,000 in a 12‑month period.
- Non‑profit organisations: threshold is $150,000.
- Taxi and ride‑sourcing (including platforms like Uber): must register regardless of turnover.
- Timing and effective date
- Register within 21 days of knowing you will exceed the threshold.
- You can backdate registration in some cases, which affects whether GST must be remitted on earlier sales and whether credits can be claimed on earlier purchases.
- Voluntary registration
- Below the threshold, you can choose to register to claim input tax credits or to align with B2B customer expectations.
- Be sure you understand the BAS lodgement commitment before opting in.
- Special cases
- Some supplies are GST‑free (e.g., certain health, education, exports) and some are input‑taxed (e.g., residential rent). Coding matters for BAS accuracy.
- Overseas sellers to Australian consumers may need to register under simplified GST rules once they meet the $75,000 threshold for sales connected with Australia.
Unsure whether your activity is taxable, GST‑free or input‑taxed? A quick scoping call via our Find a BAS Agent page can prevent costly rework on your first BAS.
What changes after you register
Pricing and invoices
Decide whether to quote GST‑inclusive or exclusive prices. Issue compliant tax invoices for taxable sales and include your ABN, invoice date, description, GST amount or a statement that the price includes GST.
Reporting and BAS
Most small businesses lodge BAS quarterly; some report monthly. Your BAS reports GST on sales and purchases, plus any PAYG withholding or instalments if applicable.
Software setup
Enable GST in your accounting software, map tax codes correctly, and update invoice templates. See Best Accounting Software for Small Business for platform guidance.
Cash vs accrual
Cash basis reports when you are paid and often smooths cash flow. Accrual reports when you invoice and suits businesses with robust bookkeeping and debtor processes.
If your books are behind or codes are inconsistent, consider pairing registration with a short cleanup. Our bookkeeping services page outlines review and catch‑up options.
Practical steps and common traps
- Steps to register
- Confirm you have an ABN and the correct business structure (sole trader, company, partnership, trust).
- Register for GST through ATO Online services or ask a registered BAS/tax agent to do it for you.
- Choose cash or accrual accounting and your BAS frequency.
- Update software tax codes, invoice templates and price lists; notify key customers if pricing changes.
- Common mistakes to avoid
- Waiting too long to register after crossing the threshold (late GST can trigger penalties and interest).
- Charging GST on GST‑free items, or missing GST on taxable sales due to incorrect tax codes.
- Claiming input tax credits without valid tax invoices or adequate records (keep records for at least 5 years).
- Forgetting to switch BAS frequency or method when business circumstances change.
- If you later deregister
- You may need to pay GST on the market value of certain assets held at the time of cancellation if you previously claimed credits.
Need a human to review your setup? Start with our BAS agent services or compare broader accounting services if you also need tax or payroll support.
Frequently asked questions
How does GST registration work?
You must register if your GST turnover meets or is likely to meet $75,000 in a 12‑month period ($150,000 for non‑profits), or if you run taxi or ride‑sourcing. Apply using your ABN via ATO Online services or through a registered BAS/tax agent, choose cash or accrual, set your BAS frequency, then charge 10% GST on taxable sales and lodge BAS on time.
What should I check before deciding?
Confirm your turnover projection, business structure, ABN status, whether any of your sales are GST‑free or input‑taxed, your preferred accounting method (cash vs accrual), BAS frequency, and software readiness. If unsure, compare our BAS agent, bookkeeping and tax accountant pages for the right level of support.
When should I get professional advice?
Get advice if you are close to the threshold, need back‑dated registration, have mixed supplies (taxable, GST‑free, input‑taxed), are switching software, or you want someone to lodge your first BAS and train your team. A short review prevents recurring BAS errors.
What is the safest next step?
List your current and projected turnover, pick cash or accrual, and set a target registration date. Then either register yourself via ATO Online services or use our Find a BAS Agent path for done‑for‑you setup and BAS lodgement.