GST basics for Australian businesses

Guide for GST in Australia

This article aims to provide you with a fundamental understanding of Goods and Services Tax (GST) is Australia and your responsibilities as an Australian business owner.

What is GST?

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

Registering for GST

When to register for GST?

GST registration is based determined by your business’ GST turnover or projected GST turnover, calculates as your total business income less GST.

You must register for GST if:

Your business’s GST turnover reaches $75,000
Your non-for-profit organisation’s GST turnover reaches $150,000
You provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your GST turnover. This applies to both owner-drivers and if you lease or rent a taxi

You start a new business and expect your turnover to reach the GST threshold in the first year of operation

You can voluntarily register for GST

Penalties may apply for failing to register for GST when required.

How to register for GST?

You can register for GST through:

Your BAS or tax agent
ATO online services for business
By phone through the ATO

GST obligations and reporting

GST obligations

Once registered for GST, you must:

Charge GST to your clients
Issue tax invoice to your clients, clearly displaying your ABN and total GST charged
Record GST on your expenses when applicable

Submit Business Activity Statement (BAS)

For more information about how to write a tax invoice, read our blog or download our free guides:

GST reporting – Business Activity Statement (BAS)

BAS is a report to the ATO detailing GST collected from your clients less GST you paid to your suppliers. The resulting balance represent either a payment due to the ATO or a refund owed to you.

It is important to remember that not all business expenses are subject to GST, so ensure that your books are accurate.

Reporting cycles vary baesd on your business turnover:

Monthly reporting

For businesses with GST turnover of over $20 million
Due date is the 21^st of the following month, Example January BAS due date is 21^st of February
Extensions may apply if a BAS agent lodge your BAS.

Quarterly reporting