Setting up · GST
GST registration in Australia: thresholds, accounting basis + BAS cycle
GST registration sounds simple — but the choices you make at registration (accounting basis, BAS frequency, how you treat input-taxed supplies) ripple through every BAS for the life of the business. Here is what each decision means, drawn directly from ato.gov.au.
★Key takeaways
- ✓Mandatory GST registration at $75,000 annual turnover ($150,000 NFP). Taxi, ride-share and limousine drivers from day one.
- ✓GST registration is free at ato.gov.au or via your tax agent. You must register within 21 days of crossing the threshold.
- ✓Choose cash or accruals at registration. Cash basis available below $10 million turnover; accruals mandatory above.
- ✓BAS cycle: monthly above $20 million turnover, quarterly for most SMEs, annual for some small voluntary registrants.
- ✓Four supply types: taxable (10%), GST-free (0%, credits claimable), input-taxed (no GST, no credits), out-of-scope.
- ✓GST on exports is generally zero-rated and exporters can still claim input tax credits, creating a net inflow.
Thresholds
When you must register
For-profit threshold
$75,000
annual GST turnover, current or projected
Not-for-profit threshold
$150,000
annual GST turnover for NFPs
Taxi + ride-share
$0
register from day one regardless of turnover
You must register within 21 days of crossing or expecting to cross the threshold. Voluntary registration is available below the threshold. Source: ato.gov.au/business/gst/registering-for-gst.
Accounting basis
Cash vs accruals
Cash basis
GST is reported on payments received and made. A sale invoiced in March but paid in April lands in the April BAS.
- Available below $10 million GST turnover.
- Easier for small businesses with bumpy payment timing.
- BAS matches actual cash position.
- You only remit GST on cash you have actually collected.
Accruals basis
GST is reported on invoices issued and received. The March sale lands in the March BAS regardless of when it is paid.
- Mandatory above $10 million GST turnover.
- Aligns BAS with financial statements.
- You may need to remit GST before customers pay (cashflow drag).
- Standard for businesses giving customer credit terms.
You elect at registration. Changing basis later requires ATO approval. Most accounting software (Xero, MYOB, QuickBooks) supports both — set up correctly from day one to avoid messy GST adjustments.
BAS cycle
Monthly, quarterly or annual
| Cycle | Who lodges this way | Due dates |
|---|---|---|
| Monthly | GST turnover $20 million or more, or voluntary election | 21st of the following month |
| Quarterly | GST turnover under $20 million (default for SMEs) | 28 Oct (Q1), 28 Feb (Q2), 28 Apr (Q3), 28 Jul (Q4) |
| Annual | Voluntary registration below the $75k threshold, with annual election | 31 October following financial year end |
A registered BAS or tax agent lodging on your behalf typically gets a one-month extension on quarterly cycles (Q1 due 25 November, Q2 due 28 February, Q3 due 26 May, Q4 due 25 August). See our BAS frequency deep dive.
Supply types
Taxable, GST-free, input-taxed + out-of-scope
| Supply type | GST charged | Input credits | Examples |
|---|---|---|---|
| Taxable | 10% GST charged | Yes — input tax credits available | Most goods + services: consulting, retail, hospitality, trades, software subscriptions. |
| GST-free | 0% GST charged | Yes — input tax credits available | Basic food, exports, education, certain health + medical services, water + sewerage, certain childcare. |
| Input-taxed | No GST charged | No — cannot claim input tax credits on related purchases | Residential rent + sale of established residential premises, most financial supplies (interest, share dealings). |
| Out-of-scope | GST does not apply | Not relevant | Wages + salaries, dividends, gifts received, hobby income (no enterprise). |
Misclassifying a supply is one of the most common GST errors. If you have any input-taxed activity (residential rental income through your business, financial supplies above the $150,000 financial acquisitions threshold), get specific advice — credits become apportioned and the rules are technical.
Practical checklist
How to register — five steps
- Confirm you have an ABN. GST is registered against an ABN — no ABN, no registration. See our ABN guide.
- Decide accounting basis. Cash if below $10m turnover and you give customer credit. Accruals otherwise.
- Decide BAS cycle. Quarterly is the default for SMEs. Monthly only if you elect it or are above $20m turnover.
- Register. Online via the ATO at onlineservices.ato.gov.au, by phoning 13 28 66, or through your tax agent in the online services for agents portal.
- Update your invoicing. Add the ABN and a clear statement of GST charged on every tax invoice from your effective registration date. Keep records for five years.
Primary sources
Where the figures on this page come from
- GST main page: ato.gov.au/business/gst.
- Registering for GST: ato.gov.au/business/gst/registering-for-gst.
- Cash vs accruals: ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method.
- BAS due dates: ato.gov.au/business/business-activity-statements-bas.
This page is general information. Tax decisions affecting your circumstances require advice from a TPB-registered tax agent or BAS agent. See our disclaimer.
Common questions
GST registration — common questions
What is the GST registration threshold?
You must register for GST when your annual GST turnover reaches or is expected to reach $75,000. The threshold is $150,000 for not-for-profits. Taxi, ride-share and limousine operators must register from day one regardless of turnover. Registration is mandatory within 21 days of crossing or expecting to cross the threshold. Source: ato.gov.au/business/gst/registering-for-gst.
How is GST turnover calculated?
GST turnover is your gross income (sales + other supplies) from all enterprises you operate, excluding GST already charged, input-taxed sales (e.g. residential rent), supplies that are not for payment, sales of capital assets and sales not connected with an enterprise. You test on both a current 12-month basis and a projected 12-month basis; reaching the threshold on either triggers the registration requirement.
Cash vs accruals — which should I use?
On a cash basis, GST is reported on payments and receipts (so a sale invoiced in March but paid in April lands in the April BAS). On an accruals basis, GST is reported on invoices issued and received (the same March sale lands in the March BAS regardless of payment). Cash basis suits small businesses with delayed customer payments. Accruals basis is mandatory above $10 million turnover. You make the election at registration and can change with ATO approval.
What is the difference between GST-free and input-taxed?
GST-free supplies (basic food, exports, certain health and education) are sold without GST, AND the supplier can claim input tax credits on related business inputs. Input-taxed supplies (residential rent, most financial supplies) are also sold without GST, BUT the supplier cannot claim input tax credits on related inputs. The distinction matters: a residential property investor pays GST on a builder's invoice and cannot claim it back, whereas an exporter can.
When can I register voluntarily for GST?
You can register for GST even if your turnover is below $75,000. Voluntary registration is common where: your customers are GST-registered businesses (so they can claim the GST you charge), you have significant GST-credit-eligible purchases at startup (laptops, software, plant), or you want to appear at full commercial scale. The trade-off: you must charge GST on every taxable sale, lodge regular BAS and stay in the system for at least 12 months.
How do I claim GST credits?
Input tax credits (GST credits) are claimed on your BAS at label G11, reducing the net GST you remit. To claim, you need: a tax invoice (for purchases above $82.50 including GST), the purchase must be for a creditable purpose (used in your enterprise), the GST must have been charged, and the period for claim is four years from when the credit became claimable.
Do I charge GST on exports?
No. Exports of goods and most exports of services are GST-free. You can still claim input tax credits on the GST you have paid on Australian-side inputs, which gives exporters a net cash inflow on GST. Specific rules apply: goods must be exported within 60 days, services must be supplied to a non-resident not in Australia, and there are anti-avoidance provisions. Source: ato.gov.au/business/international/exports.
What happens if I should have registered but did not?
The ATO can backdate your registration to the date you should have registered. You become liable for GST on all taxable sales from that date, regardless of whether you charged it. You can still claim input tax credits for that period, which softens the blow but does not eliminate it. Plus general interest charge applies. Voluntarily contacting the ATO is materially better than waiting for a review.
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