Do I need to register for GST?
One of the first questions every new tradie asks. Here's the short answer, the threshold that decides it, and what actually changes once you're registered — for Australia.
The short answer
You must register for GST once your turnover reaches A$75,000 in a 12-month period. Under that, it's your choice.
The A$75,000 threshold
In Australia, GST registration becomes compulsory when your turnover (your total sales, not your profit) reaches A$75,000 in a 12-month period. That applies in two situations:
- You have already reached A$75,000 in the last 12 months, or
- You expect to reach A$75,000 in the next 12 months.
That second one catches a lot of new tradies out — if you land a big contract early and can see you'll clear A$75k, you're meant to register then, not wait until you've actually banked it. You've got 21 days to register once you know you'll cross the threshold.
What "turnover" means
Turnover is your total business income — the full value of the work you invoice — before any expenses. It's not what you take home. A tradie billing A$7,000 a month is already over the threshold on turnover, even though their actual profit is much less.
Registering voluntarily (under A$75k)
Even below the threshold, you can choose to register. Whether it's worth it depends on your situation:
| Registering helps if… | It's less appealing if… |
|---|---|
| You spend a lot on tools, materials or a vehicle — you can claim GST credits on those purchases. | Most of your customers are homeowners (they can't claim GST back, so adding 10% just makes you dearer). |
| Your customers are mostly other GST-registered businesses (the GST washes through and doesn't cost them). | You want to keep admin to a minimum — registration means lodging a BAS regularly. |
What changes once you're registered
- You add 10% GST on top of your prices.
- Your invoices become tax invoices and must show your ABN and the GST charged.
- You lodge a BAS (Business Activity Statement, usually quarterly) and pay the GST you've collected, less the GST credits on your business purchases.
- You can claim GST credits on your business expenses.
How to register
You register with the ATO, usually online, through the Business Registration Service or your myGov/ATO Online account. You'll need an ABN first (you can apply for both at the same time). It's free.
A note on pricing
Once you're registered, quote your rates excluding GST and add 10% on top. If you're still working out your rate, see our guide on how much to charge per hour.
Guide FAQ
Is GST 10% in Australia?
Yes — GST is a flat 10%, added on top of your GST-exclusive prices.
What happens if I go over A$75k and don't register?
You're required to register within 21 days, and the ATO can backdate your registration and expect the GST you should have collected — so it's better to register on time. If you're close, talk to your accountant.
Do I need an ABN as well?
Yes — you need an ABN to register for GST, and you need it on your tax invoices. An ABN is free and separate from being GST-registered; you can hold an ABN without being registered for GST if you're under the threshold.
GST sorted, automatically
TradeStart works out GST on every quote and invoice, puts your ABN on them, and helps you get paid faster — free for your first jobs.
Start your free trial Try the live demoThis guide is general information for Australian businesses, not tax advice. GST rules can change — check current requirements with the ATO (ato.gov.au) or your accountant.