Guide
GST Registration Threshold in Australia (2026): When You Must Register
If your business turns over $75,000 or more in a rolling 12-month period, you must register for GST. Here is the plain-English version of the threshold, the rolling test, and what happens once you cross it.
In this guide
- $75,000 turnover (excluding GST) in any 12-month period triggers registration.
- The 12-month window is rolling — not financial year.
- Ride-share, taxi, and limousine drivers must register from dollar one.
Last updated
30 April 2026
Category
GST & Tax
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Guide
What the threshold actually says
Australia's GST registration threshold for most businesses is $75,000 in GST turnover. Non-profit organisations have a higher threshold of $150,000. Special rules apply to ride-share, taxi, and limousine drivers — they must register from the first dollar of income regardless of turnover.
GST turnover means your gross business income excluding GST and excluding any input-taxed sales. It is calculated on accruals (work done) or cash (money received), depending on how you account for income.
Quick reference
- Most businesses: $75,000 in any 12-month period.
- Non-profits: $150,000 in any 12-month period.
- Ride-share / taxi / limousine drivers: register from dollar one.
- Voluntary registration is allowed below the threshold.
The rolling 12-month test trips most sole traders up
The threshold is not based on the financial year. It is based on either (a) the current month plus the previous 11 months, or (b) the current month plus the next 11 months if you expect to cross.
That means you can hit it mid-year if you have a strong quarter, or you can stay under it across two financial years if your timing happens to fall right.
- Look back: current month + last 11 months → current GST turnover.
- Look forward: current month + next 11 months → projected GST turnover.
- If either is ≥ $75,000, you have 21 days to register.
If you don't register on time and you should have, the ATO can backdate your registration and require you to pay GST on past sales (often out of your own pocket if you didn't include it in invoices). Track the rolling number monthly to avoid this.
What happens once you register
Once you are registered, you must charge 10% GST on most sales (called your output tax), and you can claim back the GST on most business purchases (called input tax credits).
You also need to lodge a Business Activity Statement (BAS) with the ATO — quarterly is most common for sole traders, monthly for higher-turnover businesses, annually for some.
- Add GST (10%) to all taxable sales, on every invoice.
- Issue tax invoices that include your ABN and the GST component.
- Track GST collected (output tax) and GST paid (input tax credits).
- Lodge a BAS each period (quarterly is the default for sole traders).
- Pay the net GST owed to the ATO at the same time as lodging.
Should you voluntarily register before the threshold?
Some sole traders register voluntarily before they hit $75,000 because their customers (mostly other businesses) want a tax invoice with GST on it. Voluntary registration lets you claim input tax credits on your business expenses earlier.
The downside: you add 10% to your prices to retail / non-business customers, you have to lodge BAS, and you cannot easily de-register if your situation changes.
- If your customers are mostly other GST-registered businesses, voluntary registration usually helps (they claim it back anyway).
- If your customers are mostly individuals or non-business, voluntary registration usually doesn't — they pay the extra 10%.
- Once registered you must stay registered for at least 12 months before applying to cancel.
Practical workflow
Most sole traders only need to check once a month: add up the last 12 months of GST turnover and see how close they are to $75,000. Tools like Hnry, Rounded, and Xero do this automatically.
Once you cross, register at the ATO website (5-10 minutes), pick your BAS frequency, and start adding 10% to every invoice from your effective date.
Important note
Use the guide as a practical reference, not as advice
This page is designed to support better commercial decisions, but it should not be treated as a substitute for professional advice.
Important note on GST thresholds
This guide is a plain-English overview of the standard GST registration threshold for most Australian businesses. It is not tax advice and does not cover every business type or special rule.
- Some industries (ride-share, taxi, limousine) must register from dollar one.
- Special rules apply to non-residents, GST groups, branches, and joint ventures.
- If you are close to the threshold or unsure, confirm your position with the ATO or a registered tax or BAS professional before relying on the result.
Related tools
Use the calculators that connect to this guide
These linked tools help you turn the ideas in the guide into a faster number check or a cleaner pricing decision.
GST Calculator Australia
Add or remove 10% GST from an amount so you can check quotes, invoices, and pricing quickly.
Open calculatorBAS Set-Aside Calculator
Estimate how much GST to reserve from sales after GST credits on business purchases are considered.
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