Do I Need to Register for GST? The Australian Sole Trader Threshold Explained

One of the first tax questions most sole traders face is whether they need to register for GST. Get it wrong in either direction and there are consequences: fail to register when you should have, and you'll owe the ATO GST you never collected. Register when you don't need to, and you've added compliance obligations you didn't need yet.

This guide covers the $75,000 threshold, the situations where registration is mandatory regardless of income, how to register once you've decided (or been required), and what changes the moment you're registered.

Quick answer: You must register for GST if your GST turnover is $75,000 or more in any 12-month period (current or projected). There's one critical exception: if you provide ridesharing services (Uber, Ola, Didi), you must register from dollar one — no threshold applies. Registration requires an ABN and takes around 10 minutes via myGov.

This is general information, not tax advice — see your registered tax agent for your specific situation.

The $75,000 Threshold Explained

The GST registration threshold is $75,000 in annual GST turnover. This is not your net profit — it's your gross revenue from sales of goods and services connected with Australia.

Source: ato.gov.au — Registering for GST

Current vs Projected Turnover: Two Tests

The ATO applies two tests, and you must register if you cross the threshold under either:

Test 1 — Current 12 months: Your GST turnover in the current 12 months (not the financial year — the rolling 12 months ending today) is $75,000 or more.

Test 2 — Projected 12 months: You reasonably expect your GST turnover in the coming 12 months will reach $75,000 or more.

The projection test catches people out. You can be required to register before you've actually earned $75,000, if it's reasonable to expect you will.

Practical Example: Sarah the Cleaner

Sarah runs a residential cleaning business. In March 2026, her revenue has been consistently $6,500 per month for the past four months.

Projected annual revenue: $6,500 × 12 = $78,000

That's above the $75,000 threshold. Sarah must register for GST now — not when she hits $75,000 in accumulated receipts, but once she can reasonably project crossing the line.

She should register within 21 days of becoming aware she will exceed the threshold.

What Counts as GST Turnover?

GST turnover is your gross revenue from taxable supplies and GST-free supplies combined. It excludes:

  • Input-taxed supplies (residential rent, financial supplies)
  • Supplies made outside Australia
  • Sale of a going concern in certain circumstances

It does NOT subtract your expenses. A cafe doing $300,000 in sales but $280,000 in costs still has $300,000 in GST turnover.

When Registration Is Mandatory Regardless of Turnover

There's one major exception to the $75,000 rule that catches people every year:

Ridesharing Services: GST from Dollar One

If you provide ridesharing or ride-sourcing services — driving for Uber, Ola, Didi, or any similar platform — you must register for GST before you accept your first fare. The $75,000 threshold does not apply.

This is explicit in ATO guidance. The reasoning is that taxi and limousine services have always been required to register for GST regardless of turnover, and ride-sourcing is treated the same way.

Food delivery is different. Delivering for DoorDash, Uber Eats or Menulog is not ride-sourcing — it's a courier service. The standard $75,000 threshold applies. However, if you're already registered because of ridesharing, that GST registration covers all your self-employment income, including food delivery.

Non-Profit Organisations

The threshold for non-profits is $150,000 (not $75,000). This doesn't affect most sole traders, but worth knowing if you run a side charitable activity.

Should You Register Voluntarily?

Even if your turnover is below $75,000, you can choose to register for GST voluntarily. There are genuine reasons to do this.

Reasons to Register Voluntarily

Claim input tax credits: Once registered, you can claim back the GST you pay on business purchases. If you're spending $15,000/year on tools, equipment and software, that's $1,364 in input tax credits you're currently leaving with the ATO.

Look more established: Some clients — particularly larger businesses — prefer to work with GST-registered suppliers. It signals you're running a real operation.

Smooth the transition: If you're growing toward $75,000, registering early means no scramble when you cross the line.

Reasons to Wait

Extra compliance burden: Once registered, you must charge GST on every invoice, lodge quarterly BAS, and keep five years of records. That's real admin overhead.

Price perception: If your clients are mainly consumers (not businesses), adding 10% GST to your prices can affect competitiveness.

The general rule: if your clients are mostly other businesses who can claim the GST back anyway, voluntary registration often makes sense. If they're mostly consumers, think carefully about whether the input tax credit benefit outweighs the compliance cost.

How to Register for GST

Before you can register for GST, you need an ABN. If you don't have one, register for both at the same time through the Australian Business Register.

Registering via myGov

  1. Log in to myGov and access the ATO service
  2. Navigate to Business → Manage your registrations
  3. Select GST and follow the prompts
  4. Provide your business details, expected turnover and start date
  5. You'll receive a confirmation with your GST registration date

Registering via ABR (Australian Business Register)

Go to abr.gov.au and use the Register/Update ABN tool. You can update your ABN record to add GST registration.

Registering via a BAS or Tax Agent

If you'd rather have someone handle it, any registered BAS agent or tax agent can register you. Most do this as a small add-on to their regular service.

Registration typically takes effect from the date you request (or an earlier date if you've already been operating above the threshold).

What Changes After Registration

The day your GST registration takes effect, several things change.

You Must Charge GST on Taxable Sales

Every invoice you issue for a taxable supply must include 10% GST. You need to add it to your prices or absorb it from your existing price — either way, you need to track it separately.

Your Invoices Must Be Tax Invoices

For sales over $82.50 (GST-inclusive), you must issue a tax invoice that includes:

  • Your ABN
  • The words "Tax Invoice"
  • Date of issue
  • Description of the goods or services
  • GST amount (shown separately, or the statement "Total price includes GST of $X")
  • Total price

For sales under $82.50, a simplified invoice showing just the total and confirmation of GST inclusion is sufficient.

You Must Lodge BAS Quarterly

From registration, you're required to lodge a BAS every quarter (or monthly if your turnover is $20M+). See our full BAS lodgment guide for due dates and process.

You Must Keep Records for Five Years

All tax invoices, receipts for business purchases, and BAS lodgment records must be kept for five years from the date of lodgment or transaction.

How to Deregister from GST

If your turnover drops and stays below $75,000 — and you don't expect to exceed it — you can cancel your GST registration.

To deregister:

  • Log in to myGov or the ATO Business Portal
  • Navigate to your business registrations and select Cancel GST
  • Confirm your effective cancellation date

Note: You cannot cancel your GST registration if you're still required to be registered (i.e., your turnover is at or above $75,000 or you're a rideshare provider).

After cancellation, you stop charging GST on sales and stop lodging BAS. You'll still need to lodge a final BAS for the period up to your cancellation date.

Tools That Make This Easier

Staying on top of your GST position — tracking what you've collected, what you've paid, and whether you're approaching the threshold — is much easier with bookkeeping software that does the maths automatically.

Summed handles BAS prep automatically — try it free for 30 days at $9/mo. Start free →

FAQ

Q: I've exceeded $75,000 but forgot to register. What should I do?

A: Register immediately, then contact the ATO about your back-dated liability. You'll owe GST on all taxable sales from when you should have registered, even if you didn't charge it to customers. The ATO is generally more forgiving if you self-report rather than wait to be caught.

Q: Does the $75,000 threshold apply to each financial year, or is it rolling?

A: It's based on any 12-month period — either the last 12 months (current) or the next 12 months (projected). It's not reset at 1 July. If you crossed $75,000 between October and October, you need to register regardless of where that period falls in the financial year.

Q: I'm a rideshare driver who earns less than $10,000 a year. Do I still need to register for GST?

A: Yes. The $75,000 threshold does not apply to ride-sourcing services. You must register for GST before you take your first fare, regardless of how much you earn.

Q: If I'm GST-registered but have a GST-free side income (like fresh food sales), do I include that in my turnover calculation?

A: GST-free supplies are included in your GST turnover for the registration threshold test, even though you don't charge GST on them. However, you still lodge a BAS showing those supplies as GST-free.

Q: Can I claim GST back on purchases I made before I registered?

A: Generally yes, for stock on hand and assets held when you registered, provided you have valid tax invoices. There are specific rules on how to claim these — see an ATO-registered BAS agent for help with the first BAS after registration.

Q: I work two jobs — employed part-time and run a side business. Does my employment income count toward the $75,000 threshold?

A: No. The GST threshold applies only to your business (enterprise) income from taxable and GST-free supplies. Your salary as an employee is not included.

Q: What's the penalty for not registering when I should have?

A: The ATO can impose penalties and charge back-dated GST liabilities plus general interest charge on the unpaid amount. The longer you leave it, the larger the liability. Voluntary disclosure before an ATO review significantly reduces penalties.

Q: Do I need to register for GST if I'm a freelancer invoicing overseas clients?

A: Exports of services to overseas clients are generally GST-free, but they still count toward your GST turnover for the registration threshold test. Once registered, you'd show them on your BAS as GST-free supplies. Whether you actually need to register depends on your total turnover.