Eternity Group

Decision Guide

GST registration: the $75,000 threshold and the voluntary registration decision

A decision guide to GST registration — the $75,000 and $150,000 thresholds, how the two rolling turnover tests actually work, the special rule for taxi and ride-sourcing providers, what late registration costs, and how to weigh registering voluntarily below the threshold.

Published Sources verified 7 min read

Applies to: Current law as at 12 July 2026 — GST registration thresholds of $75,000 (businesses) and $150,000 (non-profits) · Australia

The direct answer

A business must register for GST within 21 days of its GST turnover reaching $75,000 or more ($150,000 for non-profit organisations) under either the backward-looking or forward-looking rolling 12-month test, and anyone providing taxi, limousine or ride-sourcing travel must register regardless of turnover, before their first trip. Below the threshold, registration is optional: it unlocks GST credits on business purchases, but adds 10% GST to taxable sales and ongoing BAS obligations, and generally requires staying registered for at least 12 months — a trade-off that depends on your circumstances.

Key points

  • The thresholds — $75,000 for businesses and $150,000 for non-profit organisations — are verified current at 12 July 2026 on the ATO’s Registering for GST page. No change has been enacted.
  • The turnover test rolls monthly in both directions: current GST turnover (this month plus the previous 11) or projected GST turnover (this month plus the next 11) — it is not a financial-year figure, and unregistered businesses should check each month.
  • GST turnover is total business income, not profit, with specific exclusions; projected turnover ignores capital-asset sales and wind-down sales, and registration is not required if projected turnover will stay below the threshold even where current turnover is at or above it.
  • Taxi, limousine and ride-sourcing providers must register from the first dollar — before the first trip — and must report GST monthly or quarterly.
  • Registering late can mean paying GST out of your own margin on taxable sales made since the date registration was required, plus possible penalties and interest; backdating is generally capped at 4 years.
  • Voluntary registration below the threshold unlocks GST credits on business purchases (and is required before fuel tax credits can be claimed), but brings 10% GST on taxable sales, BAS lodgement and a general 12-month minimum — who your customers are usually drives the decision.

When GST registration is compulsory

GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Registered businesses generally include GST in the prices they charge and claim credits for the GST in the price of what they buy for the business. Whether you must join that system turns on your GST turnover — plus a handful of rules that apply regardless of turnover.

Mandatory GST registration triggers — current as at 12 July 2026
SituationRegistration rule
Businesses generallyGST turnover of $75,000 or more — on either the current or the projected rolling 12-month test
Non-profit organisationsGST turnover of $150,000 or more
New businessesRegister at the start if you expect turnover to reach the threshold in the first year of operation
Taxi, limousine and ride-sourcing providersMust register regardless of turnover, before the first trip — including owner-drivers and leased or rented taxis
Fuel tax credit claimantsGST registration is required before fuel tax credits can be claimed (fuel used in light vehicles on public roads, including ride-sourcing, is not eligible)

Is the threshold changing?

No change is law. A Parliamentary Budget Office costing published 30 April 2025 priced a non-government parliamentarian’s election proposal to lift the mandatory threshold to $250,000 — a proposal costing only, never government policy, and not enacted. ATO pages live at 12 July 2026 continue to show $75,000 and $150,000.

What counts as GST turnover — and the two rolling tests

GST turnover is your gross business income — not your profit — minus a specific set of amounts:

  • GST included in sales to your customers
  • sales to associates that are not for payment and are not taxable
  • sales not connected with an enterprise you run
  • input-taxed sales
  • sales not connected with Australia

You reach the threshold if either test is met: your current GST turnover — the current month plus the previous 11 months — totals $75,000 or more ($150,000 for non-profits), or your projected GST turnover — the current month plus the next 11 months — is likely to be $75,000 or more ($150,000 for non-profits). If you are not registered, the ATO expects you to check each month whether you have reached, or are likely to exceed, the threshold. If you are a member of a GST group, your turnover includes the other group members’ turnover but excludes transactions between members.

Projected turnover has its own exclusions: amounts from selling a business asset (such as a capital asset), and sales made solely because you are ceasing your enterprise or substantially and permanently reducing its size or scale, are not counted. That produces a useful nuance — even if your current turnover is at or above the threshold, you are not required to register if your projected turnover will stay below it, for example where a one-off asset sale inflated the past 12 months.

Important

Both tests roll month by month — neither is a financial-year figure. A business that “only turned over $60,000 last financial year” can still be over the threshold today on the projected test if its forward run-rate has lifted.

The 21-day rule, backdating, and what late registration costs

Once you are required to register, you must do so within 21 days. You need an ABN first, you only register once even if you run more than one business, and you can register through Online services for business, by phone on 13 28 66, or through a registered tax agent or BAS agent.

The cost of missing it is structural, not just administrative: if you do not register when required, you may have to pay GST on the taxable sales you made since the date you were required to register — even though you never added GST to those prices — so the GST comes out of your own takings rather than being passed on to customers. Penalties and interest may also apply.

Registration can be backdated, but the window is limited: unless there is fraud or evasion, the ATO cannot backdate a registration by more than 4 years, and you are not required to be registered before that date.

Voluntary registration below the threshold — the trade-offs

If none of the mandatory triggers apply, registration is optional — and if you register voluntarily, you generally must stay registered for at least 12 months. The decision is a genuine trade-off, and the ATO’s rules define both sides of the ledger.

What you gain. Only registered entities can claim GST credits on business purchases — generally where the purchase is solely or partly for your business (and does not relate to making input-taxed supplies), the price included GST, you provide or are liable to provide payment, and you hold a tax invoice for purchases of more than $82.50. Credits apply only to the business-use portion, and a 4-year time limit applies to claiming them. GST registration is also the gateway to fuel tax credits. If equipment purchases are part of the picture, see our companion resource on the instant asset write-off status for 2026-27.

What it costs. You must include 10% GST in the price of your taxable sales, lodge activity statements on an ongoing cycle, and generally remain registered for at least 12 months even if it stops suiting you. If you are unregistered (and not required to register), the flip side is simple: no GST in your prices, and no GST credits on your purchases.

Who your customers are usually decides it. When your customers are mostly GST-registered businesses, they can generally claim credits for the GST you charge, so registering may cost you little competitively. When you sell mainly to consumers, adding GST means either a real price increase for them or a margin cut for you. Neither answer is universally right — it depends on your numbers and circumstances.

Before you decide — questions to work through

  • Who buys from you — GST-registered businesses that can claim back the GST you would charge, or consumers who cannot?
  • How much GST sits in your costs — significant equipment, stock or software purchases carry claimable credits; a low-overhead service business may have very little to claim.
  • Do you need fuel tax credits — if so, GST registration is a prerequisite.
  • Can you carry the compliance cycle — activity statements land monthly, quarterly or annually depending on your situation (see the cycles below).
  • Are you comfortable with the 12-month minimum — voluntary registration is generally not a try-it-for-a-quarter decision.
  • How close are you to $75,000 anyway — if the projected test will catch you within months, the voluntary question may be moot.

BAS obligations once you are registered

Registration brings a lodgement rhythm: once registered, you must lodge a business activity statement. The cycle depends on turnover and, in some cases, on choice.

GST reporting cycles and due dates — current as at 12 July 2026
CycleWho it applies toDue dates
QuarterlyGST turnover under $20 million (unless the ATO has directed monthly reporting)28 October, 28 February, 28 April and 28 July; online lodgers may be eligible for an extra 2 weeks (not quarter 2, which already includes a one-month extension); different dates may apply through a registered tax or BAS agent
MonthlyGST turnover of $20 million or more (lodged online), by choice, or by ATO directionThe 21st day of the following month (e.g. a July BAS is due 21 August)
AnnualVoluntary registrants only — turnover under $75,000 ($150,000 for not-for-profit bodies); not available to ride-sourcing providers, who must report monthly or quarterlyAnnual GST return due 31 October, or 28 February following the annual tax period if you are not required to lodge a tax return; agent dates may differ

Reporting itself is lighter than many owners expect: Simpler BAS is the default for GST turnover under $10 million — only total sales (G1), GST on sales (1A) and GST on purchases (1B) are reported. Businesses at $10 million or more use full reporting, and some under $10 million pay quarterly GST instalments and report annually. If a due date falls on a weekend or public holiday, the next business day applies.

Cycles can be changed: elect early in a lodgement period (such as the first month of a quarter or the start of the financial year) and the new cycle can generally start straight away; otherwise it takes effect from the next quarter or year, and you may be ineligible if you changed cycles within the last 12 months. Our BAS lodgement service manages the cycle, the due dates and the first BAS after registration; for the wider set-up questions, see our small business accounting service.

Hypothetical example — a sole trader approaching the threshold

Imagine Mia, a fictional sole trader running “Fernleaf Design”, who starts her graphic design business on 1 September. By the end of March her gross business income for the seven months to date is $46,000, and her forward bookings suggest about $5,500 per month — so her projected GST turnover (the current month plus the next 11) is roughly $66,000. That is below $75,000, so registration is not yet required, but she must recheck each month. In June she signs a new monthly retainer that lifts her expected income to about $7,800 per month, taking her projected 12-month turnover to about $93,600 — she has now met the threshold and must register within 21 days. Looking back, there was also a voluntary-registration question in her first year: had she registered while buying a $5,500 computer and $2,200 of design software (both GST-inclusive), she could have claimed $700 in GST credits ($5,500 ÷ 11 = $500, plus $2,200 ÷ 11 = $200). In exchange she would have added 10% GST to her invoices, lodged activity statements and generally stayed registered for at least 12 months. Because most of her clients are GST-registered businesses that can generally claim back the GST she charges, registering early may have cost her little competitively — but a business selling mainly to consumers faces a real price rise or margin cut. All figures here are invented purely to show the method; whether voluntary registration suits any actual business depends on its own circumstances.

This example is entirely hypothetical and illustrates the mechanics only. It is not a client outcome, a prediction, or advice.

Limitations of this information

  • General information only, current as at 12 July 2026 — thresholds, due dates and reporting rules can change, and this resource is not tax advice for your situation.
  • The standard rules are covered; special regimes — GST branches, non-resident suppliers, the margin scheme, and businesses making mainly input-taxed supplies such as financial services or residential rent — change both the turnover calculation and the credit position and are not addressed here.
  • The annual GST reporting election has specific timing windows that are not detailed here because the ATO source page has not been recently updated — confirm the mechanics with the ATO or your registered agent before relying on them.
  • Agent lodgment program due dates are not stated — the ATO says only that different dates may apply when you lodge through a registered tax or BAS agent.
  • Nothing here recommends registering or staying unregistered — the trade-offs land differently for every business, and the numbers should be worked through with a registered tax agent.

Practical next steps

  1. Work out both your current and your projected GST turnover, and diarise a monthly recheck if you are unregistered and anywhere near $75,000.
  2. If a mandatory trigger applies, register within 21 days — you will need an ABN first.
  3. Map your customer base: mostly GST-registered businesses, or mostly consumers? This usually frames the voluntary-registration decision.
  4. Total the GST sitting in your typical business purchases to size the credits a registration would unlock.
  5. If you would like the decision modelled on your actual numbers — or the BAS cycle handled once you register — see our BAS lodgement service or contact the practice.

Frequently asked questions

As at 12 July 2026, you must register for GST when your GST turnover is $75,000 or more, or $150,000 or more for non-profit organisations. You meet the threshold if either your current GST turnover (this month plus the previous 11 months) or your projected GST turnover (this month plus the next 11 months) reaches the relevant figure.

Official sources

The facts in this resource are drawn from the following official sources, each read on the date shown. If a source has changed since, the source prevails.

  • Registering for GSTATO · retrieved 12 July 2026 · supports: the $75,000 threshold, both turnover tests and exclusions, the 21-day rule, the taxi rule, voluntary registration, late-registration consequences, backdating and registration mechanics
  • GST registration for not-for-profitsATO · retrieved 12 July 2026 · supports: the $150,000 non-profit threshold and the position of unregistered entities (no GST in prices, no GST credits)
  • Ride-sourcing — registrationsATO · retrieved 12 July 2026 · supports: registration before the first trip, monthly-or-quarterly-only reporting, and the fuel tax credit exclusion for light vehicles on public roads
  • Due dates for lodging and paying your BASATO · retrieved 12 July 2026 · supports: BAS reporting cycles and thresholds, quarterly and monthly due dates, annual GST return dates and cycle-change rules
  • When you can claim a GST creditATO · retrieved 12 July 2026 · supports: GST credit conditions, the tax invoice requirement above $82.50, the divide-by-11 calculation, the business-use apportionment and the 4-year credit time limit
  • GST reporting methodsATO · retrieved 12 July 2026 · supports: Simpler BAS as the default under $10 million, full reporting at $10 million or more, and the GST instalment method
  • How GST worksATO · retrieved 12 July 2026 · supports: GST as a broad-based 10% tax and the charge-and-credit mechanics of being registered
  • GST threshold change (election commitment costing)Parliamentary Budget Office · retrieved 12 July 2026 · supports: that the $250,000 threshold figure circulating publicly was an election proposal costing only — never government policy, not enacted
Discuss your situation with us

This resource is general information for Australian residents, not tax advice. It does not consider your circumstances, and tax outcomes depend on individual facts. Speak to a registered tax agent before acting. It is also not financial product advice — we are not an Australian financial services licensee. Decisions about superannuation or other financial products should be discussed with a licensed financial adviser.

Last verified against official sources: · Next scheduled review by 12 October 2026 · Update sensitivity: high

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