Understanding whether you need to register for Goods and Services Tax (GST) is important to operate a compliant and successful business. GST is applicable to most of the goods or services available in the Australian region. In this aspect, this guide provides you with an in-depth overview of when GST registration becomes mandatory for you and how the threshold applies to your business.
Whether you are staring out or assessing your financial obligations, this complete guide helps you to navigate all aspects of GST, along with when you should approach a business setup consultant.
If you’re running a business in Australia, knowing when to register for GST is essential to remain compliant with ATO regulations. Whether you’re a sole trader or managing a company, understanding the turnover threshold and timing of registration can save you from future penalties.
Goods and Services Tax (GST) is a value-added tax, which is applied to most of the products or services sold and availed in Australia. GST was introduced on 1st July 2001, and it is collected from businesses on behalf of the Australian Taxation Office (ATO).
In the Australian economy, GST affects pricing, business compliance and consumers. Therefore, understanding GST makes sure you understand all of the terms and thresholds that are applicable to your business. If you’re managing tax obligations regularly, working with a BAS accountant can ensure your business lodgements are accurate and timely.
If you are running a business in Australia, it is important to know when GST registration becomes mandatory. While it might seem complex to you at first, these rules are quite clear, and once you understand them, staying compliant becomes easier with the help of a GST specialist.
There are some thresholds that ATO has set to register for GST, which are:
Furthermore, if you choose to register for GST, then you must stay registered for a minimum of 12 months. A trusted GST expert can assist you in evaluating whether your business meets these obligations.
Registering for GST is often required under certain circumstances, regardless of reaching the turnover threshold. Here are some signs that you should register for GST:
Even if your business turnover hasn’t reached the GST threshold Australia and you expect that it will reach it by the end of this financial year, you should apply for it. You can expect such an increase in the amount in your business if you are noticing a substantial increase in orders or confirmed deals.
You can claim credits on any purchases you make for your business if you register for GST. It is an input tax credit, which is a credit for the tax included in the price of your business essentials. Engaging a small business accountant Perth can streamline this process for startups.
If you are a non-resident business that supplies goods, services and digital products to Australian consumers. In that case, you need to register for Australia’s GST system if you exceed the permitted threshold.
For professional assistance, a BAS Agent Perth can guide you through the lodgement and compliance requirements specific to your business type.
Registering for GST in Australia is managed by the ATO, and you can register for it when you start a business or when you reach the threshold. But, before you register for GST, here are some important factors to note:
In order to apply for GST, there are primarily three methods available, which are:
For all of these methods, a BAS Agent Perth can simplify the submission and reduce errors.
You need to provide these documents for the GST application:
Using a BAS lodgement tax agent helps ensure these details are submitted correctly and deadlines are met. In the next step, you can select either the cash or accrual method of accounting. It determines when you account for GST in your activity statements.
After GST registration Australia, you will receive confirmation, and it will be required to:
Through this process, a small business accountant Perth can help to set up your invoicing systems and ensure all GST fields are correct.
As per the rules of ATO, only businesses registered for GST are allowed to include GST in their prices and invoices. Charging GST without being registered for it can lead to penalties, including the obligation to refund the incorrectly collected GST to customers or pay it to the ATO without the ability to claim input tax credits.
For businesses starting out, a small business tax consultant can guide you through what you can and cannot do before registration.
Once you have registered for GST in Australia, you can be eligible to claim GST credits for the GST paid on goods and services used in your business. These credits help to reduce the amount of GST you pay to the ATO when you lodge BAS.
In order to claim GST credits, you should comply with these areas:
If you’re unsure about the compliance aspects, a small business tax advisor can assist with record-keeping and submission timelines.
Here are some simple steps to follow for claiming GST credits.
Maintain accurate records of all GST-paid business expenses. It includes invoices, receipts and any other payment confirmations. A tax accountant for small business can help you track and submit these reports correctly each quarter.
If you wish to cancel GST registration, you can apply for cancellation through the ATO.
However, before doing so, you have to consider these factors:
For all of these instances, you must notify ATo within 21 days of becoming ineligible for GST. A business tax planner can help assess whether cancellation is the right move and how to do it effectively.
GST registrations directly influence how your business operates, prices products, and manages finances. Knowing GST responsibilities ensures day-to-day operations with fewer obligations at tax time. By staying proactive and informed, you can make decisions that support long-term compliance and business success. Through this process, a business advisor perth ensures your GST and tax goals align with your growth strategy.
Also read: How to Prepare and Lodge a BAS Statement in Easy Steps (2025 ATO Guide)
You need to register for GST if your business turnover exceeds A$75,000 annually, or if you are in a ride-share business or a taxi driver. In both scenarios, a GST accountant can help you determine your registration obligations.
They help you to monitor your turnover, manage accurate reporting, and ensure your BAS reflects your GST filing. This reduces your risk of ATO penalties.
They ensure your BAS is submitted on time with accurate GST figures, such as input tax credits and liabilities. This is especially valuable for small businesses with lodgement requirements.
They can provide strategic advice on when to register and how to price goods/services with GST included. They can also assist in choosing the right accounting method.
You can cancel your GST registration if your turnover falls below the threshold or if your business closes or restructures. But you must notify the ATO within 21 days of cancellation, and final obligations must be settled through your last BAS lodgement.
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