GST is an indirect tax that is levied on the supply of goods and services in Australia, at the point of sale. To understand when you need to register for GST, let’s first understand what it means to be registered under GST in Australia:
You are registered under GST if you fulfill any one of the following conditions:
For more info on GST and how to register, read our blog: What is GST Registration? And how to register.”
You (or your business) have a GST turnover of $75,000 or more.
If your business has a GST turnover of $75,000 or more, you must register for GST. If you are registered for GST and make taxable supplies (meaning any supply other than GST-free or input taxed supplies) then you must charge GST on those supplies.
You provide taxi or limousine travel for passengers in exchange for a fare.
You must register if you provide taxi or limousine travel for passengers in exchange for a fare. This includes:
- Taxis and limousines
- Dial-a-driver services (e.g., Uber, Lyft)
You do not have to register if you are an owner of taxis or limousine vehicles.
You are carrying on an enterprise and you provide ride-sourcing services.
If you are providing ride-sourcing services and carrying on an enterprise, you must register for GST. This is the case even if your income from the activity is not more than $75,000 a year.
If you provide:
- transportation of passengers in exchange for a fare or fee; or
- tourist activities such as sightseeing tours, air charters within Australia or car rental with driver; then that's considered to be carrying on an enterprise. You need to register for GST if this is done through an incorporated company or partnership (e.g., Travelbook).
You expect to earn $75,000 or more in any 12-month period in the future.
If your business expects to earn $75,000 or more in any 12-month period in the future, then it’s likely that you need to register for GST. But there are some exceptions:
- If you don’t have a turnover of $75,000 in the current year and aren’t likely to have one in the next 12 months, then you don't need to register for GST.
- If your business only makes sales online, and those sales are below $75,000 per year, then even if you expect them to grow beyond this threshold at some point in the future (and therefore make use of this exception), they won't be counted as part of your turnover until they grow into it. For example: if you sold $1 million worth of products online over two years but earned nothing else during that time because all other parts were loss making then none of those sales would be counted towards meeting this requirement
You should register if your GST turnover is $75,000 or more, if you provide taxi transportation or you're a ride-source providing car rides for pay, if it's likely that your GST turnover will be $75,000 or more anytime soon, or if someone asks you to register for GST.
You should register if:
- Your GST turnover is $75,000 or more, if you provide taxi transportation or you're a ride-source providing car rides for pay. (That's how much revenue your business makes.)
- It's likely that your GST turnover will be $75,000 or more anytime soon.
Someone tells you that you need to be registered.
If you are unsure whether you need to register for GST, and have questions about how best to do so, we recommend that you contact a professional. There are many different registration options available, each with its own pros and cons. Being able to select the right one can be difficult without some expert advice.
To get started, visit Registry and speak with a team member to get on the right track.
Conclusion
If you're selling goods or providing services, you need to register for GST. You must do this if your turnover is $75,000 or more in a 12-month period. If someone asks you to register for GST or if it's likely that your GST turnover will be $75,000 or more anytime soon then it's probably time to get registered.
For more information on when to register for GST visit our blog and read “What is GST Registration. And how to register.” Along with your ABN, we can also help with your GST & PAYG registrations, along with obtaining a TFN if you don't already have one
