March 2026 · 5 min read

DO I NEED TO REGISTER FOR GST? SIMPLE GUIDE FOR AUSTRALIAN SOLE TRADERS

GST confuses almost every new sole trader. Do you need to register? What happens when you do? How does it affect your invoices? And what on earth is a BAS?

Here's the plain-English version — no accounting jargon, no 47-page ATO guides. Just the stuff you actually need to know.

THE $75,000 RULE

The main rule is simple:

If your business turnover (total revenue, not profit) is $75,000 or more per year, you must register for GST.

Turnover means the total amount you invoice — before expenses, before tax, before anything comes out. If you invoice $80,000 in a financial year, you need to be registered, even if your take-home profit is only $40,000.

You also need to register if you reasonably expect to hit $75,000 in the current financial year. So if you're at $50,000 by December and clearly on track to pass $75K by June, you should register now — not wait until you cross the line.

For taxi drivers and ride-share drivers, the threshold is $0 — you must register for GST regardless of turnover.

WHAT DOES "REGISTERED FOR GST" ACTUALLY MEAN?

Once you're registered, three things change:

You charge GST on your invoices. You add 10% GST to your prices. So a $1,000 job becomes $1,100 (that's $1,000 + $100 GST). The $100 isn't your money — you're collecting it on behalf of the ATO.
You claim GST credits on your expenses. When you buy materials, fuel, tools, or anything for your business, you get the GST component back. That $55 fuel receipt? $5 of it comes back to you as a GST credit.
You lodge a BAS (Business Activity Statement). Either quarterly or monthly, you report how much GST you collected and how much you paid, and you pay the difference to the ATO (or get a refund if you paid more than you collected).

A SIMPLE BAS EXAMPLE

Let's say in one quarter you:

QUARTERLY BAS — SOLE TRADER PLUMBER

Total invoiced (inc. GST) $44,000

GST collected (1/11th of $44,000) $4,000

Business expenses (inc. GST) $16,500

GST credits (1/11th of $16,500) - $1,500

GST you owe the ATO $2,500

You collected $4,000 in GST from your clients, claimed $1,500 back on your expenses, and owe the ATO the difference: $2,500. That money was never yours — you were just holding it temporarily.

SHOULD YOU REGISTER VOLUNTARILY?

If you're under $75K, you don't have to register. But sometimes it makes sense to do it anyway.

REASONS TO REGISTER VOLUNTARILY

You buy a lot of materials and equipment. If you're spending heavily on tools, a new vehicle, or materials, you can claim GST credits on all of it. This puts real money back in your pocket.
Your clients are businesses. Business clients prefer dealing with GST-registered suppliers because they can claim the GST back. Not being registered can make you look less professional or cost your client money.
You're close to the threshold. If you're earning $60K-$70K, you'll probably cross $75K soon. Registering early means you don't have to scramble to change your invoicing and pricing mid-year.

REASONS NOT TO REGISTER

Your clients are consumers (not businesses). Residential clients can't claim GST back, so adding 10% to your prices makes you more expensive. If you're a cleaner or gardener doing residential work, GST registration can make you less competitive.
More paperwork. You'll need to lodge BAS statements (quarterly or monthly) and keep proper GST records. It's not hard, but it's more admin.
Your expenses are low. If you're a service-based business with minimal material costs (like consulting or cleaning), the GST credits you claim back will be small. The admin might not be worth it.

HOW GST AFFECTS YOUR PRICING

This is where tradies get confused. When you register for GST, you need to decide: do you add 10% on top of your current prices, or do you absorb it?

If your clients are businesses, add it on top. They claim it back anyway, so it doesn't cost them anything extra.

If your clients are residential consumers, it's trickier. Adding 10% overnight makes you more expensive. Many tradies absorb part of the GST increase to stay competitive and adjust prices gradually over time.

Remember: GST you collect is not your income. It's the ATO's money that you're holding temporarily. Don't spend it — set it aside in a separate bank account or you'll get a nasty surprise at BAS time.

BAS BASICS — WHAT YOU NEED TO KNOW

Your Business Activity Statement is due quarterly (most sole traders) or monthly (if your turnover is over $20 million — unlikely for most tradies).

Quarterly due dates:

July-September quarter: due 28 October
October-December quarter: due 28 February
January-March quarter: due 28 April
April-June quarter: due 28 July

If you use a registered tax agent, you often get extra time. Either way, the key is keeping your records up to date so BAS time isn't a panic.

HOW THEBRICKBOOK MAKES GST EASY

TheBrickBook tracks every expense and every invoice in real time. When BAS time comes around, you've already got a clear record of what you earned and what you spent — no shoebox full of receipts, no last-minute scramble.

It also calculates your real hourly rate using GST-exclusive figures, so you always know what you're actually earning — not what the invoice says before the ATO takes their cut.

GST DOESN'T HAVE TO BE COMPLICATED.

TheBrickBook tracks your income and expenses so BAS time is painless.

Download Free for iOS

THE BOTTOM LINE

If you're over $75K in annual turnover, you must register for GST. If you're under, it might still make sense depending on your clients and expenses. Either way, the most important thing is to keep clean records and not treat GST you collect as your own money.

GST isn't as scary as it sounds. It's just 10% maths and some quarterly paperwork. Get your tracking right and it basically handles itself.

Disclaimer: This guide is general information only and is not financial or tax advice. For advice specific to your situation, speak to a registered tax agent or accountant.