GST

GST Registration Threshold Australia 2026: When You Must Register

15 June 2026 · 9 min read

Quick Answer

You must register for GST once your GST turnover hits $75,000 in any 12-month period — past or projected. Non-profit organisations have a higher threshold of $150,000. Taxi and ride-share drivers must register from their first dollar, regardless of turnover.

The $75,000 GST registration threshold has not changed since GST launched in 2000, but how the ATO measures whether you've crossed it trips up thousands of Australian small business owners every year. It's not about your bank balance, your profit, or even your invoiced amounts for a calendar year — it's about your GST turnover across any rolling 12-month window, including a forward projection.

In 2026, getting this wrong carries real risk. If you breach the threshold and don't register within 21 days, the ATO can backdate your registration, making you liable for GST on sales you already made — money you may have already spent. For sole traders on tight margins, that's a serious cash-flow hit.

This guide covers exactly how the threshold works, how to calculate your turnover correctly, who is exempt, what voluntary registration looks like, and what the July 1 Payday Super changes mean for businesses sitting near the $75,000 line. Read it once, bookmark it, and stop guessing.

What Is the GST Registration Threshold in Australia?

The GST registration threshold in Australia is $75,000 in annual GST turnover for most businesses, and $150,000 for non-profit organisations. This figure is set under the A New Tax System (Goods and Services Tax) Act 1999 and confirmed by the ATO for the 2025–26 and 2026–27 financial years. There has been no legislative change to this threshold, despite ongoing discussion about inflation adjustments.

The threshold applies to your GST turnover, not your taxable income or net profit. GST turnover means the total value of sales you make that are connected with Australia — but it excludes input-taxed sales (like residential rent), sales not connected with Australia, and sales that are GST-free. This distinction matters: a landlord collecting $80,000 in residential rent does not breach the threshold because that income is input-taxed.

There are two turnover tests the ATO applies. The current test looks at the last 12 months. The projected test looks at the next 12 months. If you cross $75,000 on either test, you must register. Most business owners only think about the current test — that's a common and expensive mistake.

The threshold is based on GST turnover, not profit. A $74,999 revenue business and a $75,001 revenue business face completely different GST obligations.

Key thresholds at a glance

$75,000 GST turnover threshold for most businesses
$150,000 threshold for non-profit organisations
Taxi drivers and ride-share operators: $0 threshold (must register immediately)
21 days to register once you cross the threshold
No change to the threshold for 2025–26 or 2026–27

How to Calculate Your GST Turnover Correctly

GST turnover is calculated by adding up the value of all taxable sales and GST-free sales you make in a 12-month period. You do not include input-taxed sales in the calculation. For most sole traders selling services or goods at the standard 10% GST rate, this calculation is straightforward: add up all your invoices for the period.

The rolling 12-month test is where people get caught. You need to look at any consecutive 12-month window, not just the financial year from July 1 to June 30. If your invoices from August 2025 to July 2026 total $76,000, you've crossed the threshold — even if your July 2025 to June 2026 year was only $72,000. The ATO expects you to monitor this on an ongoing basis, not just at tax time.

The projected turnover test requires you to estimate the next 12 months based on your current trajectory. If you win a large contract in May 2026 that will push you over $75,000 by October 2026, you're already obligated to register — before you actually cross the line. Document your projections. If the ATO ever queries your registration date, a written estimate based on real contracts or seasonal patterns is your best defence.

If you're a freelancer who just landed a retainer that will push you past $75,000 this year, the projected test means you may need to register now — not when the money arrives.

What to include and exclude from your GST turnover

Add all taxable and GST-free sales
Exclude input-taxed sales (residential rent, financial supplies)
Exclude private sales not connected with your enterprise
Use any rolling 12-month window, not just the financial year
Apply the projected test if you expect to cross $75,000 in the next 12 months

Who Must Register — and Who Doesn't Have To

Registration is compulsory once you meet or exceed the $75,000 threshold on either the current or projected test. You have 21 days from the day you know (or should reasonably know) that you've crossed it. Late registration doesn't cancel your liability — the ATO can backdate your registration to the day you should have registered and issue a bill for all the GST you should have collected.

Some businesses must register regardless of turnover. Taxi drivers and ride-share operators (Uber, DiDi, Ola) must register from their first dollar earned. This rule was introduced to level the playing field with traditional taxis and has not been removed. If you drive for a ride-share platform in Australia, you need an ABN and GST registration before your first trip.

Businesses below $75,000 can still choose to register voluntarily. There are legitimate reasons to do this: it allows you to claim GST credits on your business purchases, which can be significant if you're buying equipment, software, or materials. It also signals to corporate clients that you're running a proper business. The trade-off is the admin burden of lodging BAS statements either monthly, quarterly, or annually.

Ride-share drivers: if you started driving for Uber or DiDi and don't have a GST registration, stop. Register before your next trip. The ATO actively data-matches with platform operators.

Registration: compulsory vs voluntary

Compulsory: annual GST turnover of $75,000 or more
Compulsory: non-profits with turnover of $150,000 or more
Compulsory: all taxi and ride-share operators, any turnover
Optional: any business below the threshold that wants to claim GST credits
21-day deadline from the moment you know you've crossed the threshold

What Happens After You Register: BAS, Reporting, and Cash Flow

Once you're registered for GST, you must add 10% GST to your taxable sales and collect it from your customers. You then report and pay that GST to the ATO through your Business Activity Statement (BAS). At the same time, you can claim back the GST included in your business purchases — this is called an input tax credit. The net amount (GST collected minus GST paid) is what you remit to the ATO.

BAS lodgement frequency depends on your turnover. Most small businesses lodge quarterly. If your annual GST turnover exceeds $20 million, you must lodge monthly. You can elect to lodge annually if your turnover is under $75,000 — but this is only available once you're already registered, and it means you're managing a full year of GST in a single payment, which can create a large cash-flow spike. Quarterly is almost always the better option for sole traders and small businesses.

For businesses approaching the $75,000 threshold in mid-2026, there's another cash-flow pressure point coming fast. From July 1, 2026, Payday Super becomes law — requiring employers to pay superannuation on every pay cycle rather than quarterly. If you have even one employee, your cash-flow management just got tighter. Adding GST registration and BAS obligations on top of Payday Super simultaneously is a real strain. Get your systems set up now, before July 1, not after.

From July 1, 2026 — 16 days away — Payday Super kicks in. If you're registering for GST around the same time, set up your accounting software to handle both at once. Doing it separately doubles the work.

BAS lodgement frequency rules

Quarterly BAS for most small businesses
Monthly BAS if GST turnover exceeds $20 million
Annual BAS option available for turnover under $75,000
10% GST added to all taxable sales
Input tax credits claimable on GST paid on business purchases

GST-Free and Input-Taxed Sales: What Doesn't Count Toward the Threshold

Not all revenue is equal under GST law. Some sales are taxable at 10%, some are GST-free at 0%, and some are input-taxed and excluded from your GST turnover calculation entirely. Understanding the difference determines whether you're actually over the threshold — or just think you are.

GST-free sales include most basic food (not restaurant meals or hot takeaway), most medical and health services, educational courses, exports, and some childcare services. You don't charge GST on these sales, but you still include them in your GST turnover calculation for threshold purposes. A nutritionist earning $80,000 from health consultations that are GST-free still has a GST turnover of $80,000 and must register — even though they charge no GST to clients.

Input-taxed sales are different. These include residential rental income, interest, dividends, and most financial supplies. These are excluded from your GST turnover entirely. A property investor earning $90,000 in residential rent does not breach the $75,000 threshold because the income is input-taxed. However, if that same investor also runs a small business earning $30,000 in consulting fees, only the consulting fees count toward the threshold — and at $30,000, they're still under it.

If you rent a property AND run a business, only your business sales count toward the $75,000 threshold. Your rental income is excluded. Calculate them separately.

GST sale categories and threshold treatment

GST-free: basic food, medical services, exports, education — count toward threshold but no GST charged
Input-taxed: residential rent, financial supplies — excluded from threshold calculation entirely
Taxable at 10%: most goods and services sold in Australia
Mixed businesses must calculate each category separately

Voluntary GST Registration: When It Makes Sense Below $75,000

If your turnover is under $75,000, you're not required to register — but registering voluntarily can save you money if your business has significant input costs. Every dollar of GST you pay on business purchases becomes an input tax credit once you're registered. A tradie spending $20,000 a year on materials pays $1,818 in embedded GST on those purchases. Registered, they claim that back. Unregistered, it's dead money.

Voluntary registration is a commitment, not a trial. Once you're registered, you must lodge BAS, charge GST on your taxable sales, and maintain records for five years. You can deregister if your turnover stays below the threshold and you no longer want the admin burden, but you need to formally cancel your registration with the ATO — you can't just stop charging GST without telling them.

The most common reason sole traders in Australia avoid voluntary registration is the perception that adding GST makes them more expensive to consumers. This is only true for sales to end consumers who can't claim the GST back. If your clients are businesses (B2B), they claim your GST as an input tax credit, so your gross price is irrelevant — they care about the net cost. For B2B freelancers and contractors, voluntary registration is almost always the right call once you're earning more than $40,000–$50,000 per year.

If 80% or more of your clients are registered businesses, voluntary GST registration is almost always net positive. They claim your GST back; you claim yours. Both sides benefit.

Pros and cons of voluntary registration below $75,000

Claim input tax credits on all business purchases
Lodge BAS regularly once registered
Can deregister formally if turnover stays low
B2B businesses benefit most from voluntary registration
Consumer-facing businesses may face price sensitivity concerns

SAB Account AI tracks your rolling GST turnover automatically and alerts you before you hit $75,000 — so you never miss the 21-day registration window.

SAB Account AI — ATO-compliant invoicing and payslips for Australian small businesses. From $9/mo.

Start free trial

Frequently asked questions

What is the GST registration threshold in Australia in 2026?

The threshold is $75,000 in annual GST turnover for most businesses, unchanged for 2025–26 and 2026–27. Non-profit organisations have a higher threshold of $150,000. Taxi and ride-share drivers must register from their first dollar of income.

Does GST turnover include GST in the amount?

No. GST turnover is calculated on the GST-exclusive value of your sales. If you invoice a client $1,100 including GST, your GST turnover contribution from that invoice is $1,000. The ATO always measures the threshold against the ex-GST amount.

What happens if I don't register for GST when I should?

The ATO can backdate your registration to the date you should have registered and make you liable for GST on all sales made since that date — even if you didn't collect it. You would need to pay this from your own funds. Late registration penalties may also apply.

Can I register for GST if my turnover is under $75,000?

Yes. Voluntary registration is available to any business with an ABN, regardless of turnover. The main benefit is the ability to claim input tax credits on your business purchases. The trade-off is the ongoing obligation to lodge BAS and charge GST on taxable sales.

Does residential rental income count toward the GST threshold?

No. Residential rent is an input-taxed sale and is excluded from your GST turnover calculation entirely. If you earn $90,000 in residential rent and $20,000 in business consulting, only the $20,000 consulting income counts toward the $75,000 threshold.