Summarise with AI
How GST works
GST is a broad-based tax of 10% applied to most goods and services sold or consumed in Australia. A GST-registered business adds 10% GST to its taxable sales, collects it from customers, and passes it to the ATO — while claiming back the GST it paid on its own business purchases (GST credits). Some supplies are GST-free (most basic food, and some health, education and export items) or input-taxed.
When you must register
You must register for GST when your GST turnover reaches $75,000 or more ($150,000 for not-for-profits), or when you expect it to. You generally have 21 days to register once you cross the threshold. Below the threshold, registration is optional. To register you need an ABN. Source: ATO — registering for GST.
GST credits and reporting
Registered businesses report GST through their BAS: GST collected on sales, less GST credits on purchases, equals what you pay (or get refunded). Valid tax invoices — including recipient created tax invoices in specific cases — are what let you claim GST credits, so accurate records matter. A bookkeeper or registered BAS agent commonly manages this.
Key takeaways
GST is a 10% tax on most Australian sales. Register once your turnover hits $75,000, charge GST on taxable sales, claim credits on purchases, and report the net through your BAS. Get advice from a registered tax or BAS agent, and confirm current rules on the ATO GST page.
