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Once your GST turnover reaches $75,000 a year, you have 21 days to register, and GST goes on your quotes and invoices.
Once your GST turnover reaches $75,000 a year, you have to register for GST, and the ATO gives you 21 days from going over to do it. In New Zealand the line is $60,000 in 12 months, or straight away if you add GST to your prices.
Watch the number before it sneaks up
GST turnover is your gross business income minus GST. The ATO suggests checking each month whether you've reached the threshold or are about to. A few big jobs can get you there quicker than you expect.
What changes on your quotes
Once you're registered, you add 10% GST to most prices, so a $1,000 job becomes $1,100 to the customer. Tell your regulars before it turns up on their next invoice.
Your invoices become tax invoices that show the GST, and you can claim GST credits on most of your business purchases. You report it all on an activity statement (BAS) in Australia, or a GST return in New Zealand.
If you went over and didn't register
The ATO may ask for GST on your sales from the date you had to register, even if you never charged it, plus penalties and interest. You can ask it to backdate your registration, up to 4 years.
Registering early is your call
Below the threshold, registering is optional. If you choose to, the ATO says you generally stay registered for at least 12 months, and you add GST to most prices and lodge activity statements from then on.
How to register
You need an ABN first. Then register through the ATO's Online services for business, by phone, or through a registered tax or BAS agent.
New Zealand is different
GST in New Zealand is 15% on most taxable supplies. Since 1 April 2023 you give taxable supply information instead of a tax invoice.
More detail and the ATO and Inland Revenue pages are in our guide: GST for tradies. It's general information, not tax advice.
Set it once
In Tradies Line, switch on GST registered in Settings and say whether your prices include GST. Each quote then shows GST added on top or included, and invoices say Tax invoice whenever GST applies.
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