Do I need to register for GST?

At what turnover do I have to register for GST?

At GST turnover of $75,000 or more, or $150,000 or more for a non-profit organisation.

A new business must also register if it expects its turnover to reach the threshold in its first year.

Does anyone have to register below the threshold?

Yes. Taxi, limousine and ride-sourcing drivers, and anyone who wants to claim fuel tax credits for their business, must register whatever their turnover.

The ATO's Registering for GST page also lists income from the sharing economy or digital platforms, such as food delivery, under who must register. Its page has the detail.

Otherwise, below the threshold, registering is a choice.

Is GST turnover my profit?

No. GST turnover is your total business income, not your profit, minus items such as the GST in your sales, input-taxed sales (sold with no GST in the price, such as residential rent) and sales not connected with Australia.

A business reaches the threshold in either of two ways:

• current turnover: this month plus the previous 11 months
• projected turnover: this month plus the next 11 months.

Projected turnover leaves out the sale of a capital asset, and sales made only because the business is closing or permanently shrinking. A business whose current turnover is over the threshold does not have to register if the ATO is satisfied its projected turnover will be under it.

How long do I have to register once I reach the threshold?

21 days from when you are required to register, which for most businesses is when GST turnover reaches $75,000 or more.

You need an Australian business number (ABN) before you can register.

A business that had to register and did not may have to pay GST on its sales from the date it was required to register, even if it did not charge GST on those sales. Penalties and interest may also apply.

Do Uber and other rideshare drivers need to register for GST?

Yes, whatever they earn, and before the first trip, because the ATO treats ride-sourcing as taxi travel. The one exception it names is an employee.

The rule covers anyone providing taxi or limousine travel for passengers, including ride-sourcing, whether they own the vehicle or lease or rent it.

Can I register for GST if I am under the threshold?

Yes. A business can register voluntarily, and generally then has to stay registered for at least 12 months.

A registered business with GST turnover under $75,000 can choose to cancel its registration, subject to the 12 month minimum, and not for taxi or ride-sourcing drivers. After cancelling, it can no longer claim GST credits (the GST in business purchases that it claims back). A business registered voluntarily can also report GST once a year, which the due dates guide covers.

Already registered? What changes now?

The ATO says a registered business includes GST in the price of its taxable sales and claims GST credits for the GST in what it buys for the business. It also has to lodge (send to the ATO) a BAS (business activity statement).

The ATO lists what follows from registering:

• issue tax invoices (bills showing the price and the GST) for your taxable sales, and get them for your business purchases
• account for GST on a cash or a non-cash (accruals) basis, the next question
• put aside the GST you collect so you can pay it when it is due
• pay the GST you owe, or receive a GST refund.

Can a sole trader choose cash or accruals for GST?

A business with aggregated turnover under $10 million, or one that uses cash accounting for income tax, can choose either the cash method (GST counted when money is paid or received) or the accruals method (GST counted when the invoice is issued, or earlier if paid first).

• On the cash method, GST goes on the BAS for the period in which you receive or make the payment.
• On the accruals method, which the ATO calls the non-cash method, it goes in the period of the invoice or the first payment, whichever comes first.

The $10 million limit here is aggregated turnover. That is a different measure from the GST turnover that decides whether a business can use Simpler BAS.