GST Registration Thresholds in Australia
How it works
In Australia, you must register for GST if your business's annual GST turnover reaches $75,000 (or $150,000 for non-profit organisations). Taxi drivers, rideshare drivers, and limousine operators must register regardless of turnover — there is no threshold for these industries.
Your GST turnover is the total of your taxable sales and GST-free sales (excluding GST), but it does not include input-taxed sales, sales not connected with your enterprise, or private sales. You need to monitor two figures: your current GST turnover (what you've actually earned in the last 12 months) and your projected GST turnover (what you reasonably expect to earn in the next 12 months). If either figure reaches the threshold, you're required to register.
Once you hit the threshold, you have 21 days to register. Registration is done through the Australian Business Register (ABR) and takes effect from the date you were required to register — not the date you apply. This means if you're late, the ATO can backdate your registration and you'll owe GST on all taxable sales from that date, even if you didn't charge your customers GST. Voluntary registration is also available for businesses below the threshold, which can be worthwhile if your customers are mostly GST-registered businesses (since they can claim back the GST you charge).
When to use this calculator
- You've started a new business and want to know if you need to register for GST from day one based on projected turnover
- Your business is growing and you think you might be approaching the $75,000 threshold
- You run a non-profit and need to check against the higher $150,000 threshold
- You're considering voluntary registration and want to understand the implications
- You drive for Uber, DiDi, Ola, or another rideshare platform and aren't sure if you need to register (you do, regardless of turnover)
Key concepts
- $75,000 threshold (standard businesses)
- If your annual GST turnover is $75,000 or more, you must register. This is based on gross income from taxable and GST-free sales, excluding GST itself. A business earning $7,000/month in revenue will cross the threshold in the 11th month ($77,000 annualised). Check both your actual turnover for the past 12 months and your projected turnover for the next 12.
- $150,000 threshold (non-profits)
- Registered charities, not-for-profit associations, and other non-profit organisations benefit from a higher threshold of $150,000. This recognises that many non-profits have high turnover from grants, donations, and fundraising but limited capacity to manage GST compliance.
- Projected GST turnover
- You must also register if you reasonably expect your GST turnover to reach the threshold within the next 12 months. For example, if you sign a contract worth $80,000 in annual fees, you should register immediately — you don't have to wait until the revenue actually comes in. The ATO considers what a reasonable person in your position would expect.
- Voluntary registration
- Businesses below the threshold can choose to register. The main benefit is claiming GST credits on business purchases. The trade-off is that you must charge 10% GST on your sales, lodge BAS (quarterly or monthly), and stay registered for at least 12 months. Voluntary registration is often worthwhile for B2B businesses whose clients can claim the GST back anyway.
Worked example — Freelance web developer approaching the threshold
Tom is a freelance web developer. He started his business in July and has been tracking his monthly revenue (ex-GST):
| Month | Revenue | Running 12-month total |
|---|---|---|
| Jul | $4,200 | $4,200 |
| Aug | $5,800 | $10,000 |
| Sep | $6,100 | $16,100 |
| Oct | $7,500 | $23,600 |
| Nov | $6,900 | $30,500 |
| Dec | $8,200 | $38,700 |
| Jan | $7,800 | $46,500 |
| Feb | $9,100 | $55,600 |
| Mar | $8,400 | $64,000 |
| Apr | $7,600 | $71,600 |
| May | $8,500 | $80,100 |
Tom's rolling 12-month turnover hits $80,100 in May — well above the $75,000 threshold. He actually crossed the threshold part-way through May. He now has 21 days to register for GST.
But there's a catch: Tom should also consider his projected turnover. Back in February, when his rolling total was $55,600, his average monthly revenue was already $6,950. Annualised, that's $83,400 — above the threshold. A reasonable person could argue Tom should have registered in February or March based on projected turnover.
The practical takeaway: don't wait until you've actually hit $75,000 in the bank. If your trajectory clearly points to crossing the threshold, register early to avoid backdated GST obligations.