Goods and services tax (GST) registration in Australia is an important part of running a business that sells goods or services domestically. Registering for GST means you’ll charge the standard 10% tax and can claim credits on business purchases. It signals to customers and partners that your business is operating properly within Australia’s tax system.

Below, we’ll explain what to know about GST, including who needs to register, what documents are required, how to register for GST, and what it means for online and ecommerce businesses.

What’s in this article?

• What is GST registration in Australia?
  
• Who needs to register for GST?
  
• What do you need before registering for GST?
  
• How do you register for GST in Australia?
  
• How does GST registration work for ecommerce businesses?
  
• What are the benefits of GST registration for small businesses?
  
• How Stripe Tax can help
  

What is GST registration in Australia?

Goods and services tax is a 10% tax added to most goods and services sold or consumed in Australia. When a business registers for GST, it agrees to collect that tax on behalf of the government by adding it to customer invoices and later sending it to the Australian Taxation Office (ATO) through a regular business activity statement (BAS).

GST registration gives you the ability to claim back credits for the GST you’ve paid on business expenses such as digital products. If you’re not registered, you can’t claim those credits.

Who needs to register for GST?

Not every business has to register for GST immediately. Registration timing depends on your turnover and what kind of business you run.

Here’s who needs to register for GST:

• Businesses over the threshold: Registration is mandatory if your annual GST turnover is 75,000 Australian dollars (AUD) or more. Nonprofits have to register when their GST turnovers are 150,000 AUD or more.

• Rideshare and taxi drivers: Anyone who provides rideshare, taxi, or limousine services must register for GST, regardless of income. This rule applies from the first dollar earned.

• Businesses that claim fuel tax credits: If you plan to claim fuel tax credits, you need to be registered for GST, no matter how small your turnover is.

If you’re under the threshold, you can still choose to register. You’ll be able to reclaim GST on your expenses, which can make your business look more established to clients or suppliers.

What do you need before registering for GST?

Once your turnover reaches 75,000 AUD (or 150,000 AUD for nonprofits), you have 21 days to register for GST. If you delay registration, the ATO can backdate your registration by up to four years, charge GST on past sales, and add penalties or interest.

You’ll need to gather the following information to register for GST:

• Australian Business Number (ABN): You’ll need an ABN to register for GST. If you don’t already have one, you can apply through the Australian Business Register and file for GST at the same time. To get an ABN, you must be running a commercial business or enterprise intended to generate revenue.

• Accurate business details: You’ll need to share your business structure, address, and contact information. The ATO will use these details for all official GST communications so keep them up-to-date.

• Tax and identification info: Have your tax file number and personal identification ready. The ATO might ask for these to verify your identity, especially if you’re a sole trader.

• Bank details for refunds: If you’re eligible for GST credits or refunds, link your business bank account information so the ATO can pay those directly.

How do you register for GST in Australia?

Once you have your ABN and business details, you can choose whichever method best fits your business operation. GST registration is free if you do it yourself through official ATO channels.

These are the ways to register for GST:

• Online through the ATO business portal: The fastest option is to log in to ATO online services using your myGovID and add GST registration to your ABN. Approval is often instant for simple applications.

• By phone: Call the ATO at +61 13 28 66 to register over the phone. You’ll need to confirm your identity and ABN, and the officer can complete the process during the call.

• Through a registered tax or BAS agent: Your accountant or bookkeeper can register on your behalf using the BAS agent portal. This option can save time and ensure everything is set up correctly, but you’ll likely have to pay the agent for their service.

• By paper form: You can mail the NAT 2954 paper form to the ATO, if your business prefers offline processes. It takes longer, but it’s still free. You can order the form here.

Once your registration is confirmed, the ATO will send a notification with your effective start date. From that date forward, you must include GST in your pricing and issue tax invoices that show your ABN and the GST amount.

Businesses lodge a monthly or quarterly BAS to report the GST they’ve collected and reclaim the GST they’ve paid on expenses.

How does GST registration work for ecommerce businesses?

Ecommerce businesses follow the same GST rules as any other business, but selling via online marketplaces can impact how GST is collected.

Here’s how GST applies when you run a business online:

• Domestic online sales: As with regular sales, if your business is based in Australia and sells to Australian customers, you need to register once you have annual sales of 75,000 AUD or more. Then, you’ll add 10% GST to your prices and will need to issue tax invoices that show your ABN and GST amount.

• Sales to overseas customers: Exports are GST-free. If you sell goods or services to customers outside of Australia, you don’t charge GST on those transactions. These sales usually don’t count towards your GST turnover threshold, but you’ll still record them in your BAS.

• Overseas businesses that sell to Australians: If your business is based outside of Australia and sells digital products, software, subscriptions, or low-value goods for 1,000 AUD or less to Australian customers, you must register for GST once your sales to Australia meet or exceed 75,000 AUD per year. If you sell goods over 1,000 AUD, any GST, customs duty, and clearance charges are charged to the importer at the border. The ATO offers a GST registration system for nonresident businesses that don’t have ABNs.

• Marketplaces and platforms: Some online marketplaces take on the responsibility for collecting and remitting GST on sales to Australia made through their platforms. If you sell through a marketplace, check whether the platform handles GST for you or whether you’re responsible for collecting it yourself.

Online businesses often rely on automated tax tools to handle GST calculations at checkout. Stripe Tax, for example, can automatically apply the correct GST rate based on a customer’s location.

What are the benefits of GST registration for small businesses?

Even if your business is under the 75,000 AUD threshold, choosing to register for GST can have advantages. Early registration can help you recover costs, signal credibility, and set up clean, compliant systems that scale as your business grows.

Here’s how your small business can benefit from registering for GST:

• Claiming GST credits: Once you’re registered, you can reclaim the GST paid on business expenses for everything from equipment to software subscriptions. Those credits can noticeably improve your profit margins.

• Building credibility: GST registration signals that your business is legitimate and ready for growth. Many larger clients prefer working with GST-registered suppliers because it simplifies their own accounting.

• Preparing for growth: If you expect to exceed the 75,000 AUD threshold soon, registering early prepares you ahead of time. You can price your products or services with GST built in from the start and avoid future price adjustments.

• Maintaining compliance: Registering before you’re legally required to reduces the risk of backdated payments or penalties. It also helps you get comfortable with GST reporting before the stakes get higher.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. It can also register to collect tax on your behalf in the US and manage filings through trusted partners. Stripe Tax automatically calculates and collects sales tax, VAT, and GST on:

• Digital goods and services in all US states and over 100 countries

• Physical goods in all US states and 42 countries

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration, or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: If your business is in the US, let Stripe manage your tax registrations, and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations. If you’re located outside the US, Stripe partners with Taxually to help you register with local tax authorities.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.