Growing past the GST threshold is a great sign your business is doing well. It also brings a new obligation, and missing it can be costly.
The rule ✍🏻
You must register for GST when your GST turnover reaches $75,000 or more ($150,000 for not-for-profits). Taxi and ride-share drivers must register from their first dollar, whatever their turnover.
You have 21 days to register once you know you've reached the threshold.
➡️It's a forward and backward test⬅️
GST turnover isn't just last year's figure. You've crossed the line if either:
your turnover for the current month plus the previous 11 months is $75,000 or more, or
your projected turnover for the current month plus the next 11 months is likely to be $75,000 or more.
That second test catches people out. Landing a big contract can push you over before the money has even come in.
⏰ What happens if you're late?
If you should have registered but didn't, the ATO can backdate your registration. You may then owe GST on past sales you never charged, which comes out of your own pocket.
👍🏻 Getting ready
If you're getting close to $75,000:
Track turnover monthly on a rolling 12-month basis.
Review your pricing. Will you add GST on top, or absorb it?
Check that your invoices and software are ready to show GST.
Plan for lodging a BAS, usually quarterly.
You can also register voluntarily below the threshold, which can make sense if you have significant GST on purchases.
📞 Talk it through
Exact BAS & Bookkeeping can help you work out where you stand and get set up properly. Call 03 9860 4480.
