GST Rights and Obligations in Australia
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The Goods and Services Tax (GST) is a 10% tax on most goods, services, and other items sold or consumed in Australia, governed by the A New Tax System (Goods and Services Tax) Act 1999. The tax was politically contentious when it landed in 2000 — but the framework has been stable since.
You must register for GST if your business has GST turnover of $75,000 or more per year (or $150,000+ for non-profits). Below those thresholds, registration is voluntary.
Once registered, you charge GST on taxable supplies, lodge a Business Activity Statement (BAS) — usually quarterly — and pay the ATO the GST you collected minus any GST credits you're entitled to on business purchases. The BAS cycle is the rhythm of running a small business in Australia.
Some supplies are GST-free — most basic food, health services, education, exports. Others are input-taxed — financial supplies and residential rent — meaning no GST is charged and no credits can be claimed.
If you're registered, you must issue tax invoices for sales of $82.50 or more (including GST) on request by the buyer.
When does it apply?
This applies to businesses and sole traders operating in Australia.
- You must register if your annual GST turnover is $75,000 or more.
- Taxi and rideshare drivers must register for GST regardless of turnover.
- You can voluntarily register below the threshold to claim GST credits on business purchases.
What to Do If You Are Unsure About Your Australian GST Registration or BAS Obligations
- Register for GST through the Australian Business Register (ABR) if required.
- Lodge your BAS on time — quarterly BAS is due 28 days after the end of each quarter.
- Issue tax invoices for taxable sales of $82.50 or more when requested.
- Claim GST credits on business purchases — keep tax invoices as evidence.
- Separate GST-free and input-taxed items in your accounting records.
What should you NOT do?
- Don't charge GST if you are not registered — it is an offence to collect GST without being registered.
- Don't claim GST credits on private purchases — only business expenses qualify.
- Don't ignore your BAS — late lodgement attracts penalties and interest from the ATO.
- Don't charge GST on GST-free supplies such as basic food and medical services.
- Don't forget to cancel your registration if your turnover drops below $75,000 and you no longer wish to be registered.
Use the jurisdiction bar at the top of the page to pick your state — you'll see how state law differs from Australian federal law.
6 states available
Common Questions
When does gst rights and obligations apply?
This applies to businesses and sole traders operating in Australia.You must register if your annual GST turnover is $75,000 or more.Taxi and rideshare drivers must register for GST regardless of turnover.You can voluntarily register below the threshold to claim GST credits on business purchases.
What should I do if I'm not sure whether I need to register for GST in Australia?
Register for GST through the Australian Business Register (ABR) if required.Lodge your BAS on time — quarterly BAS is due 28 days after the end of each quarter.Issue tax invoices for taxable sales of $82.50 or more when requested.Claim GST credits on business purchases — keep tax invoices as evidence.Separate GST-free and input-taxed items in your accounting records.
What mistakes should I avoid with gst rights and obligations?
Don't charge GST if you are not registered — it is an offence to collect GST without being registered.Don't claim GST credits on private purchases — only business expenses qualify.Don't ignore your BAS — late lodgement attracts penalties and interest from the ATO.Don't charge GST on GST-free supplies such as basic food and medical services.Don't forget to cancel your registration if your turnover drops below $75,000 and you no longer wish to be registered.
GST Rights and Obligations in other states
Same topic, different jurisdiction. Pick the one that applies to you.