BAS Basics - Do I Need To Register For GST?

Do I Need to Register for GST?

All businesses must register for GST if their GST turnover is over $75,000 per year. Businesses with GST turnovers less than $75,000 may choose to register for GST, but are not required to.

GST turnover refers to
your gross business income (not including GST) for either the 12 months leading up to the current month (current GST turnover) or the 12 months starting with the current month (projected GST turnover). All new businesses expecting to earn $75,000 or more in their first year should register for GST.

If you have registered for GST, then you are legally obliged to charge GST on all your goods and services your business sells (except for items that are GST-exempt eg food) and complete Business Activity Statements. That collected GST is passed on to the ATO. You are also entitled to claim back any GST that other businesses have charged you. Your business may also have other tax obligations such as Fuel Tax Rebates, PAYG Withholding etc that are reported in your BAS.

Why would a business turning over less than $75,000 choose to register for GST?
  • Your GST credits (the GST other businesses have charged you) is greater than the GST you charge, meaning a nett GST refund for your business
  • You have other taxes (eg Fuel Tax rebates) that means a tax refund for your business
  • You want your business to look professional - customers expect businesses to charge GST in Australia

To register for GST, you must also have an Australian Business Number (ABN), which must be quoted on all invoices. You can register for an ABN and GST at the same time on the
ATO’s Business Portal.

Do I Need To Register for GST? | QuickBAS - Small Business Tax and BAS software