What Is the GST Registration Threshold?
If you’re searching “GST registration threshold Australia” or “when do you have to register for GST,” the short answer is this: a business must register for GST if its GST turnover is $75,000 or more. For non-profit organisations, the threshold is $150,000.
But the detail matters. The $75,000 threshold is based on current or projected GST turnover, not just past revenue. That means accountants need to look forward as well as backward when advising clients.
Where It Goes Wrong
The most common mistake is misunderstanding what counts toward GST turnover. It includes gross business income, not profit. It generally excludes input-taxed supplies such as residential rent and certain financial supplies. If clients are close to the threshold, even a few large invoices can push them over.
Another issue arises when businesses delay registration after exceeding the threshold. If GST should have been charged but wasn’t, the business may still owe GST to the ATO even if it wasn’t collected from customers. That can create cash flow pressure and corrective BAS adjustments later.
There is also confusion around voluntary registration. Some businesses choose to register below the $75,000 threshold to claim GST credits. That can be beneficial, but it also means full BAS reporting obligations apply from that point forward.
Incorrect timing of registration can lead to GST reporting errors, backdated adjustments, and amended BAS lodgements.
The Takeaway
In Australia, the GST registration threshold is $75,000 in GST turnover for most businesses. As an accountant, review both current revenue and projected income to determine whether registration is required.
Getting the registration timing right prevents larger BAS corrections later. It’s much easier to register correctly at the right time than to unwind reporting errors after the fact.
