If you’re running a small business, one of the most common questions we hear is: “Do I actually need to register for GST?” The answer depends on your turnover, your industry, and sometimes your own preference — and getting it wrong in either direction can cost you. Here’s what to consider.
What Is GST, in Plain Terms?
Goods and Services Tax (GST) is a broad-based tax added to most goods and services sold in Australia. If you’re registered for GST, you generally charge an extra amount on your sales, remit that to the ATO, and in turn claim back the GST you’ve paid on eligible business purchases. If you’re not registered, you don’t charge GST — but you also can’t claim GST credits on what you buy.
When Registration Is Compulsory
Registration isn’t optional once your business crosses the relevant GST turnover threshold set by the ATO. If your current or projected annual turnover reaches that threshold, you’re required to register — usually within 21 days of becoming aware you’ll exceed it. Because this threshold can be adjusted over time, it’s worth confirming the current figure with us rather than relying on a number you’ve seen elsewhere.
- Turnover is generally calculated as your gross business income, not profit.
- Certain industries (like ride-sharing and taxi services) have special rules requiring GST registration regardless of turnover.
- If you expect to exceed the threshold soon, it’s often safer to register early rather than risk a late registration penalty.
When Registration Is Optional
If your turnover is below the threshold, registering for GST is a choice rather than an obligation. Some small businesses register voluntarily anyway — usually because it lets them claim back GST on setup costs and ongoing purchases, or because their clients expect a tax invoice with GST included.
What Registration Actually Involves
Once registered, you’ll generally need to:
- Include GST in the price of your taxable sales and issue proper tax invoices.
- Lodge a Business Activity Statement (BAS) — usually quarterly, though some businesses lodge monthly or annually.
- Keep clear records of GST collected and GST paid, so your BAS figures are accurate.
None of this needs to be complicated, but it does need to be set up correctly from day one — retrofitting your invoicing and bookkeeping after the fact is far more time-consuming than getting it right at the start.
Getting It Right From the Start
Whether you’re just starting out, growing past the threshold, or simply unsure whether voluntary registration makes sense for your business, it’s worth getting advice before you make the call. We can review your turnover, your industry, and your customer base, and help you register (or deregister) correctly — and set up your invoicing and BAS process so it runs smoothly from the outset.
Get in touch with our team to find out where your business stands.