The GST registration threshold in Australia

Turnover is not take-home profit

The test concerns relevant business income, not the amount left after expenses. A business can have substantial sales and modest profit. Subtracting rent, software, materials and wages from sales before testing the threshold gives the wrong starting point.

For example, $82,000 of relevant sales and $35,000 of expenses leaves $47,000 before other adjustments. The expenses do not turn $82,000 of sales into $47,000 of turnover. Use the ATO definition to decide which receipts are included or excluded.

Review current and projected turnover

The ATO uses rolling 12-month current and projected turnover tests, with exclusions and exceptions. Do not assume you can wait until the end of June or until an accounting report shows a full year over the threshold.

A practical routine is to update a monthly sales summary and a realistic forward forecast. Keep notes explaining major changes, such as a new contract, the end of a contract or a planned reduction in activity. A single month is useful evidence, but it is not the complete statutory test.

Special rules and timing

Taxi and ride-sourcing services generally require GST registration regardless of turnover. Registration can also be required to claim fuel tax credits. Once registration is required, the usual deadline is 21 days. Voluntary registration is possible and generally comes with a minimum registration period.

Use the official registration guidance below for your circumstances. This guide does not determine the effective date for a particular business.

Prepare your workflow for registration

Check how your quotes describe GST, review prices, update your invoice template and organise purchase records. Confirm the effective registration date before charging customers. An ABN alone does not mean GST registration is active.

The invoice maker can switch between a tax invoice and an ordinary invoice. It does not register your business, lodge a BAS, or establish whether earlier sales need adjustment. Those questions need a review of your facts.

Common questions