GST Registration for Australian Businesses: When Do You Need to Register?

Publication date: 10 December 2025 | Updated: 23 September 2026

GST registration in Australia becomes compulsory for most businesses and enterprises when their GST turnover reaches the registration threshold. However, the test is not simply whether your revenue for a financial year or calendar year exceeds $75,000.

For most businesses, the GST registration threshold is $75,000. For non-profit organisations, it is $150,000. Taxi, limousine and ride-sourcing operators must register regardless of turnover. Businesses that want to claim fuel tax credits must also be registered for GST.

The important part is how GST turnover is measured. The ATO looks at both your current GST turnover and your projected GST turnover using rolling 12-month periods.

If your business is growing, checking GST turnover each month can help you identify the registration point before an overdue registration creates unexpected GST liabilities.

Quick Summary

• For most businesses and enterprises, compulsory GST registration starts when GST turnover meets the $75,000 threshold.
• The threshold for non-profit organisations is $150,000.
• Current GST turnover looks at the current month plus the previous 11 months.
• Projected GST turnover looks at the current month plus the next 11 months.
• You generally need to register within 21 days of becoming required to register.
• Taxi, limousine and ride-sourcing operators must register regardless of turnover.
• You must be registered for GST if you want to claim fuel tax credits.
• Businesses below the compulsory threshold can generally register voluntarily.
• If you register voluntarily, you generally need to remain registered for at least 12 months.
• Once registered, you generally charge GST on taxable sales, may claim eligible GST credits and need to report GST to the ATO.
• If you should have registered but did not, you may still have to pay GST on taxable sales from the date registration was required, even if you did not charge customers GST.

What Is the GST Registration Threshold in Australia?

For most Australian businesses and enterprises, the GST registration threshold is $75,000 in GST turnover.

The threshold is $150,000 for non-profit organisations.

These thresholds apply to GST turnover, not profit. Expenses are not deducted simply to determine whether the business has reached the registration threshold.

There are also situations where registration is compulsory regardless of the ordinary turnover threshold. These include providing taxi, limousine or ride-sourcing travel. Registration is also required if a business wants to claim fuel tax credits.

What Does GST Turnover Mean?

GST turnover is not simply the revenue figure in your annual financial statements.

The ATO calculates GST turnover using the value of relevant business supplies, with specific exclusions. For example, GST included in sales, input-taxed sales and sales not connected with the enterprise are excluded from GST turnover.

Sales of capital assets are also excluded when working out projected GST turnover. This can matter where a business sells a major asset and appears to have an unusually high month of receipts.

Because the calculation contains exclusions, businesses close to the threshold should calculate GST turnover using the ATO rules rather than relying only on a profit and loss report.

How Does the Rolling 12-Month GST Turnover Test Work?

The GST registration test uses two measures: current GST turnover and projected GST turnover.

Current GST turnover

Current GST turnover is the value of relevant supplies made during the current month and the previous 11 months.

Projected GST turnover

Projected GST turnover is the value of relevant supplies made, or likely to be made, during the current month and the next 11 months.

This means GST registration is not based only on the financial year, calendar year or the previous 12 completed months.

A growing business can become required to register because its projected GST turnover reaches the threshold before it has actually generated $75,000 in historical turnover.

Does Reaching $75,000 Automatically Mean You Must Register?

Not in every circumstance.

Under the GST turnover test, a business can meet the threshold because its projected GST turnover is at or above $75,000.

A business can also meet the test where its current GST turnover is at or above $75,000 and the Commissioner is not satisfied that its projected GST turnover is below the threshold.

This distinction matters where a business has an unusual one-off period of high trading but genuinely expects turnover to fall below the threshold going forward.

Businesses should not assume that a single revenue number provides the answer. Check both current and projected GST turnover under the ATO rules.

When Does a New Business Need to Register for GST?

A new business needs to register if it expects its GST turnover to reach $75,000 or more in its first year of operation.

You do not need to wait until the business has physically received $75,000 in revenue. If contracts, bookings, sales forecasts or other reliable information show that projected GST turnover will meet the threshold, registration may already be required.

This is particularly important for businesses that start with a substantial client contract, a strong sales pipeline or rapid early growth.

How Long Do You Have to Register for GST?

You generally have 21 days after becoming required to register for GST.

Businesses that are not registered should check their GST turnover each month. Waiting until the end of the financial year can mean the registration deadline has already passed.

If you are approaching the threshold, regular bookkeeping makes it much easier to monitor turnover accurately.

Cotchy’s guide to business record keeping requirements explains the records Australian businesses should maintain.

Do Sole Traders Need to Register for GST?

A sole trader is subject to the same general $75,000 GST turnover threshold as other businesses.

Being a sole trader does not create a separate lower threshold, and the test is based on GST turnover rather than taxable profit.

A sole trader providing taxi, limousine or ride-sourcing services must register regardless of turnover.

Do Companies, Partnerships and Trusts Need to Register?

Companies, partnerships and trusts carrying on an enterprise are generally subject to the same $75,000 GST turnover threshold.

The legal structure does not remove the GST registration requirement. What matters is whether the entity is carrying on an enterprise and whether its GST turnover meets the applicable threshold, or another compulsory registration rule applies.

Do Ride-Sourcing Drivers Need to Register for GST?

Yes. Taxi, limousine and ride-sourcing operators must register for GST regardless of turnover.

That means the normal $75,000 threshold does not protect a driver from compulsory registration simply because their ride-sourcing income is lower.

The rule applies to passenger transport of this kind, including ride-sourcing.

Do You Need GST Registration to Claim Fuel Tax Credits?

Yes. A business or enterprise that wants to claim fuel tax credits must be registered for GST.

This is another situation where GST registration may be required even when ordinary GST turnover is below $75,000.

For more information about GST credits and fuel tax credits, see Cotchy’s GST Credits and Fuel Tax Credits guide.

Can You Register for GST Voluntarily?

Yes. If your business is below the compulsory registration threshold and no other mandatory rule applies, you can generally choose to register voluntarily.

Voluntary registration means taking on the GST obligations that come with being registered. Depending on the supplies you make, this can include charging GST on taxable sales, keeping appropriate records and lodging GST reports.

A voluntarily registered business can generally claim GST credits on eligible business purchases, subject to the normal GST credit rules.

If you register voluntarily, you generally need to remain registered for at least 12 months.

Should a Business Below $75,000 Register Voluntarily?

There is no single answer for every business.

Factors that may be relevant include the type of customers you sell to, whether your sales are taxable, the GST included in business purchases, the additional reporting requirements and how close the business is to compulsory registration.

The decision should be based on the business’s actual circumstances rather than an assumption that voluntary registration is always beneficial.

Can You Charge GST Before You Are Registered?

You should not charge and collect GST simply because you expect to register later.

If you are not registered for GST, you cannot represent an amount as GST in the same way as a GST-registered business.

If a business incorrectly charges GST while unregistered, the invoicing and amounts collected may need to be corrected.

What Happens After You Register for GST?

Once registered, GST becomes part of the business’s ongoing accounting and reporting systems.

Depending on the transactions involved, a registered business will generally need to:

• include GST in the price of taxable sales
• issue tax invoices where required
• keep records supporting GST on sales and purchases
• claim eligible GST credits on business purchases
• report GST through activity statements or an annual GST return where eligible
• pay net GST to the ATO or receive a refund where GST credits exceed GST payable.

Our Business Activity Statement (BAS) guide explains how GST and other tax obligations are reported through activity statements.

How Often Do GST-Registered Businesses Report?

The reporting cycle depends on turnover and the business’s circumstances.

• Quarterly: generally where GST turnover is less than $20 million and the ATO has not required monthly reporting.
• Monthly: required where GST turnover is $20 million or more. Businesses below that level can also choose monthly reporting in some circumstances.
• Annually: may be available where the business is voluntarily registered and GST turnover is below $75,000, or below $150,000 for a non-profit body.

A registered tax or BAS agent may also affect the practical lodgement timetable for eligible businesses.

What Happens If You Register for GST Late?

Late GST registration can create a liability even where the business did not charge GST to customers.

If you were required to register but did not, the ATO may require you to pay GST on taxable sales from the date you should have been registered. Penalties and interest may also apply.

The ATO allows applications to backdate GST registration, generally subject to a four-year limit unless fraud or evasion is involved.

If you discover that registration should have occurred earlier, establish the correct effective date and quantify the affected sales and purchases before correcting the position.

Can You Claim GST Credits After a Late Registration?

A late or backdated registration can also affect GST credits.

Eligible GST credits may be available for business purchases made during the backdated registration period, subject to the normal requirements and time limits.

However, backdating does not only create credits. The business must also account for GST on taxable sales made during the relevant registration period.

That is why the full position should be calculated rather than focusing only on potential GST credits.

Can You Cancel Your GST Registration?

A business can generally choose to cancel GST registration when its GST turnover is below the compulsory threshold and it is no longer required to remain registered.

However, cancellation is not available in every situation. For example, taxi and ride-sourcing operators remain subject to compulsory registration while carrying on that activity.

A business that sells or closes, or changes its business structure in circumstances requiring cancellation, generally needs to cancel the relevant GST registration within 21 days.

Cancellation can have GST consequences for assets and other amounts held at the cancellation date, so the effective date should be considered carefully.

What If Your Turnover Drops Below $75,000?

Dropping below $75,000 does not automatically cancel your GST registration.

If the business is no longer required to be registered, it may be able to choose cancellation. Alternatively, it can remain voluntarily registered if eligible.

A business that registered voluntarily will generally need to satisfy the minimum 12-month registration period before cancelling.

Before cancelling, consider outstanding BAS obligations, GST credits, business assets and whether turnover is likely to rise above the threshold again.

Common GST Registration Mistakes

• Using profit instead of GST turnover to test the $75,000 threshold.
• Checking turnover only at the end of the financial year.
• Using January-to-December revenue instead of the rolling GST turnover tests.
• Waiting until historical sales physically reach $75,000 even though projected GST turnover already meets the threshold.
• Assuming every receipt or asset sale is included in GST turnover.
• Assuming falling below $75,000 automatically cancels an existing GST registration.
• Charging GST before the business is registered.
• Forgetting that taxi and ride-sourcing operators have a compulsory registration rule regardless of turnover.
• Overlooking GST registration when claiming fuel tax credits.
• Registering late and failing to review GST on earlier taxable sales.
• Changing business structure without checking whether the old entity’s GST registration needs to be cancelled and the new entity registered.

GST Registration Examples

How to Monitor GST Registration as Your Business Grows

GST registration should be monitored throughout the year, not treated as an annual checklist.

A practical process is to review GST turnover each month as part of bookkeeping and management reporting. If the business is approaching $75,000, calculate both current and projected GST turnover using the ATO definitions.

Good bookkeeping also helps identify whether unusual receipts, asset sales or other transactions need different treatment in the GST turnover calculation.

Cotchy’s bookkeeping services include regular reconciliation and reporting that can help keep GST information current.

For businesses with incomplete historical records, catch-up bookkeeping can help establish accurate turnover and GST information.

GST Registration and E-Commerce Businesses

Online businesses are subject to the same general GST registration rules as other Australian enterprises.

Fast growth can make the projected turnover test particularly important for e-commerce businesses. A new advertising campaign, wholesale agreement or seasonal sales increase can change the registration position before historical turnover reaches $75,000.

See Cotchy’s E-Commerce Tax and Compliance Checklist for broader tax and record-keeping considerations for online businesses.

Frequently Asked Questions

What is the GST registration threshold in Australia?

For most businesses and enterprises, the GST turnover threshold is $75,000. For non-profit organisations, it is $150,000.

Is the $75,000 GST threshold based on profit or revenue?

It is based on GST turnover, not profit. GST turnover has its own calculation rules and excludes certain supplies and amounts.

Is GST turnover based on the financial year?

No. Current GST turnover uses the current month and previous 11 months. Projected GST turnover uses the current month and next 11 months.

Do I have to wait until I earn $75,000 before registering?

No. A new or growing business can be required to register when projected GST turnover is likely to reach the threshold.

How long do I have to register for GST?

You generally need to register within 21 days after becoming required to register.

Can I register for GST if turnover is below $75,000?

Yes, voluntary registration is generally available where compulsory registration does not apply. You generally need to remain registered for at least 12 months.

Do Uber and other ride-sourcing drivers need GST registration?

Taxi, limousine and ride-sourcing operators must register for GST regardless of turnover.

Do I need GST registration to claim fuel tax credits?

Yes. A business or enterprise that wants to claim fuel tax credits must be registered for GST.

Can I cancel GST registration if turnover falls below $75,000?

Potentially. Falling below the threshold does not automatically cancel registration. Check whether you remain required to register and consider the GST consequences before cancelling.

What happens if I should have registered for GST earlier?

You may need to account for GST on taxable sales from the date registration should have applied, even if you did not charge customers GST. Penalties and interest may also apply.

Make GST Registration Part of Your Business Growth Checks

GST registration can change as a business grows, wins new work or changes activities.

The safest approach is to monitor GST turnover regularly and act when the registration test is met rather than waiting for year-end.

Accurate bookkeeping makes that easier. It also helps ensure GST coding and BAS reporting are correct once the business becomes registered.

Cotchy provides taxation services for Australian businesses that need assistance with GST and other tax obligations.

Sources
Australian Taxation Office – Registering for GST
Australian Taxation Office – Cancelling your GST registration
Australian Taxation Office – Due dates for lodging and paying your BAS

Information in this article is general in nature and is correct as at 23 September 2026. GST registration depends on the circumstances of the business or enterprise. Check current ATO guidance or obtain professional advice for your circumstances.