If you operate a business in Australia, you’ll need to comply with goods and services tax (GST) rules when your annual turnover reaches $75,000 Australian dollars (AUD). That means completing GST registration, charging 10% GST on taxable sales, and reporting to the Australian Taxation Office (ATO). Adhering to GST rules impacts your business’s pricing, contracts, invoicing, cash flow, and compliance.

Below, we’ll explain how the GST threshold in Australia works, who needs to register, and how to stay compliant once you’re in the system.

What’s in this article?

• What is the GST threshold in Australia?
  
• Who needs to register for GST in Australia?
  
• What happens if you exceed the $75,000 GST threshold?
  
• How does the GST threshold work for sole traders?
  
• Can you register for GST voluntarily below the threshold?
  
• How do you register for GST and stay compliant?
  
• How Stripe Tax can help
  

What is the GST threshold in Australia?

The GST threshold in Australia is the point at which a business is legally required to register for GST. Most Australian businesses have a GST threshold of $75,000 AUD in annual gross income. The threshold is based on total sales revenue before expenses (not profit), and both taxable and GST-free sales count toward GST turnover. Input-taxed supplies, such as residential rent or financial supplies, are generally excluded.

The threshold is measured on a rolling 12-month basis. You must continuously monitor turnover to see if you’re approaching the threshold. Both confirmed and expected revenue can trigger the registration requirement. If you expect you’ll reach $75,000 AUD in the next 12 months (based on signed contracts, confirmed bookings, or clear growth trends), you should start the registration process. If you start a business expecting to exceed the threshold in its first year, you should register immediately. As a rule, you have 21 days to register from when you either reach or confirm that you expect to reach the threshold.

Who needs to register for GST in Australia?

Most businesses and sole traders are subject to the $75,000 AUD GST threshold. If their turnover is $75,000 AUD or more in any 12-month period, they must register. If it’s a non-profit organization, the threshold is $150,000 AUD. Below that level, registration is optional.

Certain businesses aren’t subject to threshold rules and must register regardless of turnover. GST registration is mandatory from the first dollar earned for taxi, limousine, and rideshare drivers; similarly, any businesses claiming fuel tax credits must be registered for GST.

When businesses are closely related or grouped for GST purposes, turnover might be assessed collectively. In this case, the threshold would be measured against the aggregated GST turnover, not each entity individually.

What happens if you exceed the $75,000 GST threshold?

Crossing the threshold changes your obligations immediately. It will affect how you price, invoice, and report revenue.

Once you’re subject to GST, you must:

• Charge 10% GST on taxable sales: GST must be included in applicable prices from your effective registration date.

• Issue compliant tax invoices: Invoices must include your Australian Business Number (ABN) and clearly show the GST amount or state that the price includes GST.

• Lodge Business Activity Statements (BAS): Businesses typically lodge quarterly, and declare the GST collected and GST paid, then remit the net amount in a BAS.

Late registration can be costly. The ATO can backdate your registration and require you to pay GST on past sales, with interest and penalties.

How does the GST threshold work for sole traders?

Sole traders are governed by the same rules as other businesses. The main difference is that they need to separate business turnover from everything else in their financial life. Salary and wages from employment, investment income, or other personal income don’t count toward GST turnover; only business income counts.

Once sole traders hit the threshold, they’re subject to the same rules as all other businesses. They’ll need to charge GST, issue tax invoices, and lodge regular BAS.

Can you register for GST voluntarily below the threshold?

You can register for GST voluntarily if your turnover is below $75,000 AUD. If you register, you can claim input tax credits, which can improve cash flow if your business has impactful GST-bearing costs. You also might appear more commercially credible: some clients, particularly larger organizations and government bodies, expect suppliers to be GST-registered.

Once registered, you must charge GST on taxable sales and meet ongoing compliance requirements, including BAS lodgements, recordkeeping, and invoicing obligations. You’ll stay registered until you cancel; voluntary registration doesn’t lapse automatically.

How do you register for GST and stay compliant?

Registering for GST is straightforward. You’ll need an ABN to register; if you don’t have one, you can apply for an ABN and GST registration at the same time through the Australian Business Register. If you already have an ABN, you can register for GST directly with the ATO. Registration is free when done directly with either of these entities. It can be done online with a myGovID, by phone, through a tax or BAS agent, or using a paper form.

When you register, you’ll confirm your GST start date. From this date, GST must be calculated, charged, and reported. Once registration is complete, staying compliant requires ongoing discipline around invoicing, reporting, and recordkeeping.

You’ll need to:

• Issue compliant tax invoices: Proper invoices support your compliance and your customers’ ability to claim credits.

• Lodge BAS on time: Small and medium-sized businesses usually report quarterly, declaring sales, GST collected, GST paid, and the net amount owing on their BAS.

• Keep records for at least five years: Accurate records underpin BAS reporting and protect you from an ATO review.

• Monitor turnover constantly: Even after registering, track GST turnover on a rolling 12-month basis. If circumstances change, you might later be eligible to cancel registration.

Tools such as Stripe Tax can automatically calculate GST based on customer location and transaction type. Stripe can also help track when your turnover approaches registration thresholds, reducing the risk of late registration.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

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 API.

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: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• 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.