For calculating GST credits if registered
GST Registration Optional
Your turnover of $65,000.00 is below the $75,000.00 threshold. GST registration is optional but may be beneficial if you have significant GST-claimable expenses.
$65,000.00 / $75,000.00 (87%)
Your projected turnover of $90,000.00 will exceed the threshold. You should register for GST before reaching $75,000.00.
GST registration threshold
You must register for GST if your business has a GST turnover of $75,000 or more ($150,000 for non-profit organisations). GST turnover is your gross business income excluding GST, input-taxed sales, and sales not connected with Australia.
Projected turnover rule
You must also register if at any point your projected GST turnover for the next 12 months is likely to exceed the threshold. This means you should register before actually reaching $75,000 if growth is expected.
GST credits & input tax credits
Once registered, you can claim credits for GST included in the price of business purchases. Your net GST payable is the difference between GST collected on sales and GST paid on purchases. This is reported on your Business Activity Statement (BAS).
Voluntary registration benefits
Even if your turnover is below the threshold, you can voluntarily register. This lets you claim input tax credits on purchases and can make your business appear more established to B2B clients. However, you must then charge GST on all taxable sales.
ATO Requirement: You must register within 21 days of exceeding the threshold. Failure to register when required can result in penalties. You can register voluntarily at any time.
When you need to register for GST, how to do it, and what it means for your business
When must you register for GST?
You must register for GST when your business turnover reaches A$75,000 or more in a 12-month period (or A$150,000 for non-profit organisations). You also need to register if you provide taxi or ride-sharing services regardless of turnover. If you expect to exceed the threshold in the coming 12 months, you should register before you reach it. Registration is done through the ATO using your ABN.
Can you register for GST voluntarily?
Yes. Even if your turnover is below A$75,000, you can choose to register. This lets you claim GST credits on your business purchases, which can be valuable if you buy a lot of equipment, supplies, or services. For example, if you spend A$20,000 per year on business expenses that include GST, you could claim back about A$1,818 in GST credits. However, you must then charge GST on all your sales and lodge BAS returns.
What is GST and how much is it?
GST (Goods and Services Tax) is a broad-based 10% tax on most goods, services, and other items sold or consumed in Australia. If you sell something for A$100, you add A$10 GST and charge the customer A$110. You collect the GST and pay it to the ATO, minus any GST credits you can claim on your own purchases. Some items are GST-free, including basic food, medical services, and education courses.
How do you lodge a BAS?
Once registered for GST, you must lodge a Business Activity Statement (BAS). Most small businesses lodge quarterly (every three months). You report the GST you collected on sales, the GST credits you are claiming on purchases, and the difference is what you owe or are owed. You can lodge through your myGov account, accounting software, or your tax agent. Quarterly BAS is due 28 days after the end of each quarter.
What are GST credits and how do you claim them?
GST credits (input tax credits) let you claim back the GST included in the price of things you buy for your business. If you buy a A$1,100 laptop (including A$100 GST) for work, you can claim back the A$100. You need a tax invoice to claim the credit. You cannot claim GST credits on items that are GST-free, input-taxed (like residential rent), or for private use. Credits are claimed on your BAS.
What is the difference between GST-free and input-taxed?
GST-free items have no GST charged on the sale, but you can still claim GST credits on related purchases. Examples include basic food, exports, and medical services. Input-taxed items also have no GST on the sale, but you cannot claim GST credits on related purchases. The main input-taxed items are residential rent and most financial services. This distinction matters when calculating your GST credits.
What happens if you do not register when required?
If your turnover passes A$75,000 and you do not register, the ATO can register you and backdate it. You would then owe GST on all sales from the date you should have registered, plus penalties and interest. The ATO uses data matching to identify businesses that should be registered. It is much better to register on time. You have 21 days to register from the date you become aware you have exceeded the threshold.
Can you cancel your GST registration?
Yes, if your turnover drops below A$75,000 and you no longer want to be registered. You cancel through the ATO. Once cancelled, you stop charging GST and cannot claim GST credits. You need to account for any GST on hand (such as stock or assets) when you cancel. You can re-register later if your turnover rises again. Cancellation takes effect from the date you apply or a future date you nominate.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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