What is GST?
GST is a 10% tax applied to most goods and services sold in Australia. Businesses collect it on behalf of the Australian Taxation Office (ATO) and pass it on through regular reporting. If you're registered, you add GST to your prices and claim back the GST you pay on business expenses. It's not income for your business; it's a tax you collect and remit on the government's behalf.
Do I need to register for GST?
Registration is mandatory in some cases and optional in others. You must register if your annual turnover hits the $75,000 threshold. For non-profit organisations, that threshold rises to AUD $150,000.
You also need to register regardless of turnover if you provide taxi or ride-sharing services. Knowing when to register for GST helps you avoid penalties and backlogged tax bills.
What is annual turnover?
Your annual turnover is your total business income, not your profit. It includes all taxable sales before subtracting GST. The ATO looks at two figures: your current turnover for the past 12 months and your projected turnover for the next 12 months.
If either figure reaches AUD $75,000, you're required to register. Once you hit the threshold, you have 21 days to complete registration. Missing that window can result in the ATO backdating your registration and charging you GST on past sales.
What do I need before registering for GST?
Getting your documents in order before you start saves time. Here's what you'll need to have ready.
ABN requirement
You need an Australian Business Number (ABN) before you can register for GST. You can apply through the Australian Business Register for free. If you're setting up a new business, you can apply for both your ABN and GST registration at the same time.
Business details required
You'll need your business name, structure (such as sole trader, company, or trust), business address, and contact information. The ATO uses these details for all official communications, so keep them current and accurate.
Bank account details
Your bank account details are required so the ATO can process any GST refunds or credits you're entitled to. Make sure you have your BSB and account number on hand when you apply.
Turnover estimates
You'll be asked to provide an estimate of your annual turnover. This helps the ATO determine your reporting cycle, such as monthly or quarterly. Base your estimate on realistic revenue projections.
How to register for GST - step by step
There are 4 things to consider when you are wondering how to register for GST in Australia. Each method suits different business types and preferences.
Register online via ATO Online Services
This is the fastest option for most businesses. Log in to ATO Online Services for Business using your myGovID credentials. Under "Manage ABN," select the option to add GST registration and follow the prompts. For sole traders, you can also use your myGov account linked to the ATO. Approval is often instant for straightforward applications.
Register via your tax agent or BAS agent
A registered tax agent or BAS agent can handle your registration on your behalf. This option is useful for complex business structures or if you're managing multiple tax registrations at once. You'll need to provide written consent and your business details to authorise them.
Register by phone
You can call the ATO directly on 13 28 66 to register over the phone. An ATO officer will verify your identity and ABN and complete the process during the call. This is a good option if you prefer to speak with someone directly.
Register via paper form
If you prefer a paper-based method, you can request the NAT 2954 form, also known as "Add a New Business Account," from the ATO's publication ordering service. Complete the form and mail it to the ATO. This method takes longer than online registration.
What happens after you register for GST?
Once your registration is confirmed, your obligations start immediately. You'll need to update your invoices, adjust your pricing, and set up your record-keeping processes. It's also a good idea to notify your accountant or bookkeeper so they can update your financial systems accordingly.
Here's what to expect:
Your GST registration date
The ATO will notify you in writing of your GST registration details, including your effective start date. From that date, you must include GST in your pricing and issue tax invoices that show your ABN and the GST amount.
Record-keeping obligations
You're required to keep records of all GST sales and purchases. Good records make it easier to lodge accurate reports and claim the correct credits. Most businesses use accounting software to stay organised. The ATO can request records at any time, so keep them accessible and up to date.
BAS lodgement requirements
Once registered, you'll need to lodge a Business Activity Statement (BAS). Your BAS cycle will be monthly or quarterly, depending on your turnover. The BAS is how you’ll report how much GST you've collected and how much you're claiming back.
GST-free vs input-taxed supplies - what you need to know
Not everything in Australia attracts GST. GST-free supplies include most basic food, medical services, and educational courses. You can still claim credits on purchases related to these supplies, but you don't charge GST to customers.
Input-taxed supplies, such as financial services and residential rent, are different. You don't charge GST on these, either, but you also can't claim GST credits on related purchases. Understanding which category your sales fall into affects how you complete your BAS.
How to cancel your GST registration
You can cancel your GST registration if your turnover drops below the threshold and you no longer wish to remain registered. However, if you registered voluntarily, you must stay registered for at least 12 months before cancelling. To cancel, contact the ATO through ATO Online Services for Business by phone or through your registered tax agent.
Penalties for late GST registration
If you don't register for GST within 21 days of reaching the threshold, the ATO can backdate your registration. This means you may owe GST on past sales, plus interest and penalties. Backdating can go back as far as 4 years, which adds up quickly.
Staying on top of your turnover and registering on time is far easier than sorting out backdated obligations later.
GST registration scams - how to stay safe
Scammers sometimes target business owners with offers to register for GST or an ABN on their behalf, often charging fees for a service that's free. Never share your business details or bank account details with third parties you don't know or trust. Be especially cautious of unsolicited emails, calls, or messages claiming to be from the ATO.
If you're unsure about a contact claiming to be from the ATO, don't engage. Reach out directly to the ATO or speak with a registered tax agent to verify.
Frequently asked questions about how to register for GST in Australia
Here are some of the most common questions about GST registration in Australia.
How long does it take to register for GST?
Online registration through ATO Online Services for Business is often processed instantly for straightforward applications. Phone and paper registrations may take longer, depending on processing times.
Can I register for GST before reaching the threshold?
You can voluntarily register for GST even if your turnover is below AUD $75,000. This can be beneficial if you want to claim GST credits on business expenses.
What happens if I don't lodge my BAS on time?
Failing to lodge your BAS by the due date can result in penalties and interest charges from the ATO. It's important to track lodgement deadlines and stay on top of your obligations.
How do I know how to register for GST correctly?
To understand how to register for GST in Australia, use the ATO's official Online Services for Business portal. You may also consult a registered tax agent or BAS agent for guidance.
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