Do I need to register for GST if I earn under $75,000?
Usually no. You must register when your GST turnover reaches $75,000, either over the last 12 months or expected over the next 12. GST turnover is your total business income, not your profit. The big exception is driving passengers for a taxi, limousine or rideshare service, which needs GST registration from the first dollar.
The short version
- With business clients who claim GST back, registering leaves Jess about $1,000 ahead, but with household clients and the same prices it leaves her about $4,455 worse off.
- GST turnover is your total business income, not what's left after expenses. A tradie who bills $80,000 and spends $30,000 on materials has crossed the line, even with $50,000 profit.
- Add up the last 12 months every month, and ask yourself whether the next 12 will pass $75,000. That's the test the ATO uses.
Your ABN is ticking along, the jobs are coming in, and someone at a barbecue tells you that you “have to” register for GST. Someone else says you don't until $75,000. Both sound sure of themselves.
Here's how the test actually works, and how to tell whether registering early would help you or quietly cost you.
The $75,000 test, in plain words
You must register for GST once your GST turnover is $75,000 or more ($150,000 for non-profits). The ATO checks two ways, and either one can trigger it:
- Current GST turnover: this month plus the previous 11 months.
- Projected GST turnover: this month plus the next 11 months, if it's likely to reach $75,000.
So it isn't based on the financial year. It's a rolling 12 months, looking back and looking forward. Once you're required to register, you have 21 days to do it.
What counts towards your turnover
GST turnover is built from your business income, before expenses come off. In practice that means:
- Count: what customers pay you for your goods and services through the business.
- Leave out: the GST part of any sales, once you're registered.
- Leave out: wages from a job, which aren't business income.
- Leave out: private sales, like selling your own car or furniture.
If you run two side hustles as a sole trader, they add together. A candle stall and a bit of dog walking are one turnover, not two.
How the rolling test catches people
Rhys is a handyman in Townsville. He bills about $6,000 a month, which is $72,000 over 12 months, so he's under the line. In March he lands a $5,000 fencing job on top of his usual work.
Now his last 12 months add up to $72,000 plus $5,000, which is $77,000. He's over $75,000, so he has 21 days to register, even though it's only March and his financial year total looks smaller. The same thing happens if a big contract signed today means his next 12 months are likely to pass $75,000.
The rideshare exception
If you provide taxi or limousine travel for passengers, including rideshare, you must register for GST regardless of your turnover, from the day you start. Food and parcel delivery isn't passenger travel, so if delivery is all you do, the usual $75,000 test applies. If you're already registered because of rideshare, GST applies to your delivery income too, because your registration covers all your business income.
We've written a separate guide for drivers who do both.
What changes once you're registered
- You add 10% GST to your taxable sales, or treat your prices as including GST.
- You issue tax invoices and keep them for your business purchases.
- You lodge a BAS, usually quarterly, and pay the GST you collected minus the GST credits on your business purchases.
- If you register voluntarily, you generally have to stay registered for at least 12 months.
The GST in a GST-inclusive price is one eleventh of it. A $110 job includes $10 GST.
Should I register voluntarily?
It depends mostly on who your customers are.
- Mostly businesses that are registered for GST: they claim the GST back, so adding it to your price doesn't really cost them, and you get credits on your own purchases. Registering early can leave you a little ahead.
- Mostly households: they can't claim GST back. You either raise your prices by 10% and risk losing work, or keep your prices and hand one eleventh of them to the ATO.
Big set-up costs can also tip the balance, because you can claim GST credits on business purchases once registered. Weigh that against the extra paperwork of a BAS every quarter.
Worked example
Jess the photographer weighs it up
Example only. Jess is a photographer in Newcastle expecting $60,000 of work this year. Her business costs are $11,000, which includes $1,000 GST. She's under the threshold, so registering would be her choice. We compare three outcomes.
| Step | Sum | Result |
|---|---|---|
| Not registered: income minus costs | $60,000 minus $11,000 | $49,000 |
| Registered, adds 10% for business clients: GST to the ATO | $6,000 collected minus $1,000 credits | $5,000 |
| Registered, adds 10%: left over | $60,000 minus $10,000 costs without GST | $50,000 |
| Registered, keeps prices for household clients: GST inside her prices | $60,000 / 11 | about $5,455 |
| Registered, keeps prices: GST to the ATO | $5,455 minus $1,000 credits | about $4,455 |
| Registered, keeps prices: left over | $60,000 minus $5,455 minus $10,000 | about $44,545 |
With business clients who claim GST back, registering leaves Jess about $1,000 ahead, but with household clients and the same prices it leaves her about $4,455 worse off.
Left over means before income tax. This ignores the time a quarterly BAS takes and any customers lost if prices rise.
Getting close to the line
If you're on track to pass $75,000 in the next 12 months, plan ahead. Work out whether you'll add GST to your prices or absorb it, tell regular customers early, and start a separate GST savings account. When you do register, GST money is never yours to spend, so move one eleventh of every GST-inclusive payment straight across.
Not sure if your activity is a business at all, or whether some income counts towards turnover? Check with the ATO or a registered tax agent.
Key numbers
| What | Figure and source |
|---|---|
| GST registration threshold | $75,000 ($150,000 for non-profits) ATO |
| Current GST turnover | Current month plus previous 11 months ATO |
| Projected GST turnover | Current month plus next 11 months ATO |
| Taxi and rideshare rule | Must register regardless of turnover ATO |
| 21 day rule | Register within 21 days once required ATO |
| Voluntary registration minimum | Generally 12 months ATO |
Free official help
- ATO registering for GST
The $75,000 test, current and projected turnover, and the 21 day rule. - ATO how GST works
The basics of charging GST and claiming credits. - ATO tax invoices
What a tax invoice needs to show once you're registered. - ATO are you in business?
Check whether your activity counts as a business. - ATO GST reporting methods
How Simpler BAS works for small businesses.
Questions people ask
Is the $75,000 based on profit?
No. It's GST turnover, which is your total business income, not your profit.
Is it based on the financial year?
No. It's a rolling 12 months, both the last 12 months and the expected next 12 months.
How long do I have to register once I pass $75,000?
Within 21 days of becoming required to register.
Can I cancel if I register voluntarily?
Generally you must stay registered for at least 12 months. After that, check the ATO's rules on cancelling.
I only do food delivery. Do I need GST?
Not until your turnover reaches $75,000. The from-the-first-dollar rule is for passenger transport such as rideshare.
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Sources
- Registering for GST (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst, accessed 2026-10-16.
- How GST works (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/how-gst-works, accessed 2026-10-16.
- Tax invoices (ATO). https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices, accessed 2026-10-16.
- Are you in business? (ATO). https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/starting-your-own-business/are-you-in-business, accessed 2026-10-16.
- GST reporting methods (ATO). https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/goods-and-services-tax-gst/gst-reporting-methods, accessed 2026-10-16.
- How GST applies when providing services (ATO). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/sharing-economy-and-tax/providing-services/how-gst-applies-when-providing-services, accessed 2026-10-16.