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Do I need to register for GST as a sole trader?

By Yamate · Last updated June 2026

The short answer: you must register for GST once your business turnover hits $75,000 in a 12-month period — either the past 12 months, or what you reasonably expect over the next 12. Below that, it's optional. Once registered you add 10% GST to your prices and lodge a BAS.

This is one of the first things every new tradie has to sort out, and it trips a lot of people up. The rule itself is simple; the judgement call is whether to register early when you don't have to. Here's the plain-English version.

The $75,000 rule

You're required to register for GST when your GST turnover reaches $75,000 or more. That's measured two ways and either one counts:

  • Current turnover — your turnover for the current month plus the previous 11 months is $75,000+, or
  • Projected turnover — you reasonably expect your turnover for the current month plus the next 11 months to be $75,000+.

"Turnover" here means your gross business income (before expenses), not your profit. Once you hit the threshold you have 21 days to register. You can confirm the current rules on the ATO's registering for GST page.

Should I register before I have to?

Under $75k it's your choice, and there are real arguments both ways.

Reasons to register early

  • You can claim GST back on your business purchases — tools, a ute, materials, fuel, software. For a tradie kitting out, that adds up fast.
  • It looks established — some commercial and builder clients prefer dealing with a GST-registered business.
  • You won't get caught out crossing the threshold mid-year.

Reasons to hold off

  • Your prices are effectively 10% cheaper to homeowners who can't claim GST back — handy if you compete on price for residential work.
  • Less paperwork — no BAS to lodge.
💡 If most of your customers are homeowners (who can't claim GST) and you're well under $75k, staying unregistered keeps you 10% more competitive. If you're buying a lot of gear or working for businesses, registering early often wins. When in doubt, ask your accountant.

What changes once you're registered

  • You add 10% GST on top of your prices (use the GST calculator if you're new to it).
  • Your invoices become tax invoices — they must show "Tax Invoice", your ABN and the GST.
  • You lodge a BAS (usually quarterly), paying the GST you collected minus the GST you paid on purchases.
  • You should set the GST aside as you go — it's not your money, it's the ATO's.
⚠️ If you're NOT registered, you must not charge GST, and your invoices should say "Invoice", not "Tax Invoice". Charging GST without being registered is taken seriously by the ATO.
Yamate adds GST to every invoice automatically once you're registered →

FAQ

What's the GST threshold for a sole trader in Australia?

$75,000 of GST turnover in a 12-month period (current or expected). At or above that you must register; below it, registering is optional.

Is turnover the same as profit?

No — turnover is your gross business income before expenses. You can hit the $75k GST threshold on turnover even if your profit is much lower.

Do I charge GST if I'm not registered?

No. If you're not registered for GST you must not add it, and your invoices should say "Invoice" rather than "Tax Invoice".

How do I register for GST?

You can register online through the ATO / Business Registration Service, by phone, or through your registered tax agent. You'll need an ABN first.

Related

How to get an ABN · How much tax to put aside · Tax set-aside calculator

GST calculator Free invoice generator

General information for Australian sole traders, not tax advice. GST rules and thresholds can change — check the ATO or your accountant for your situation. Last updated June 2026.