Business Registration
GST Registration
Review GST registration considerations, invoicing impacts, and when to revisit GST obligations as revenue changes.
Overview
GST Registration explained
GST registration is the step that brings your business into the Goods and Services Tax system, meaning you charge GST on taxable sales, claim credits on purchases, and report through Business Activity Statements. It is a tax registration, separate from your ABN.
Registration is generally required once your annual turnover reaches $75,000, or $150,000 for non-profits, but you can register voluntarily before that. Either way, you need an ABN first, and registering changes how you invoice and how you set prices.
Cockatoo helps you judge when GST registration applies and revisit your obligations as revenue grows, so you are never caught off guard at the threshold.
What to check
Key points
- GST registration is generally required at $75,000 annual turnover.
- Non-profit organisations have a higher threshold of $150,000.
- You need an active ABN before you can register for GST.
- Once registered, you lodge Business Activity Statements on a set cycle.
Before you start
What you'll need
- An active ABN to attach the GST registration to.
- A current estimate of your annual turnover and its trajectory.
- Pricing decisions that account for GST being added to taxable sales.
- Invoicing that can display GST and the words tax invoice.
- A record-keeping habit for GST collected and GST paid.
- A reporting cycle preference for your Business Activity Statements.
Process
How it works
- Estimate annual turnover and compare it against the GST threshold.
- Confirm your ABN is active so GST can be registered against it.
- Register for GST when you reach the threshold or decide to register early.
- Update invoices and pricing to reflect GST on taxable sales.
- Review turnover periodically to confirm GST still applies as revenue changes.
Avoid these
Common mistakes
- Not monitoring turnover and crossing $75,000 without registering in time.
- Charging GST before you are actually registered for it.
- Registering voluntarily without budgeting for the extra BAS reporting.
- Forgetting to revisit GST status when revenue rises or the business changes.
Common questions
GST Registration FAQs
When is GST registration required in Australia?
GST registration is generally required once your annual turnover reaches $75,000, or $150,000 for non-profit organisations. You should monitor turnover so you register in time. Below the threshold you may still register voluntarily if it suits your business.
Can I register for GST before I reach the threshold?
Yes, you can register voluntarily below the threshold. This lets you claim GST credits on business purchases, but it also means charging GST on sales and lodging Business Activity Statements. Weigh the credit benefit against the extra reporting before deciding.
How does registering for GST affect my invoices?
Once registered, you add GST to taxable sales and issue tax invoices that show the GST amount and the words tax invoice. You also claim credits for GST on eligible purchases. The net GST is reported and paid through your Business Activity Statement.
Should I revisit my GST obligations as revenue grows?
Yes. Turnover can climb past the threshold faster than expected, so review it regularly. If you approach $75,000, plan to register promptly. If your circumstances change, such as becoming a non-profit, the relevant threshold and obligations may change too.
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