Many business owners register for GST from day one, regardless of income. Others wait until it’s mandatory. So when is the right time?
When GST Registration Is Mandatory
You must register for GST when your business turnover reaches (or is likely to reach) $75,000 per year ($150,000 for non-profit organisations). If you’re a taxi or ride-sharing driver, registration is required from dollar one.
Should You Register Early?
There can be advantages to voluntary registration before you hit the threshold:
- Claim GST credits — you can claim back the GST on business purchases and expenses, which is especially valuable during the startup phase when you’re buying equipment, software and supplies.
- Professional credibility — being GST-registered can signal to clients and suppliers that your business is established and legitimate.
- Avoid retrospective registration — if you suddenly cross the threshold without realising, you could be liable for GST on past sales.
Things to Consider
- GST adds 10% to your prices — if your clients are consumers (not businesses), this can make you less competitive
- You’ll need to lodge BAS returns (monthly or quarterly)
- Your bookkeeping needs to track GST on every transaction
Need Advice?
As registered BAS agents, we can help you decide when to register and handle all your GST and BAS obligations. Book a free consultation.