Do I need to charge GST? A plain-English guide
You need to charge GST in Australia only if you're registered for GST. You must register once your GST turnover reaches $75,000 or more (current or projected), or if you provide taxi or ride-sourcing services. Below $75,000, registering is optional — and if you're not registered, you don't charge GST.
That one rule trips up a lot of freelancers — especially as income grows. Here's what "GST turnover" actually means, how to know when you've crossed the line, and whether voluntary registration makes sense for you.
Key takeaways
- Not registered for GST = don't charge GST and don't issue 'tax invoices'.
- Must register at $75,000+ GST turnover (current or projected). Non-profits: $150,000.
- Taxi and ride-sourcing drivers must register regardless of income.
- You have 21 days to register once you're required to.
- Registering voluntarily generally locks you in for at least 12 months.
The $75,000 rule
According to the ATO, you must register for GST if:
- your business has a GST turnover of $75,000 or more,
- your non-profit organisation has a GST turnover of $150,000 or more, or
- you provide taxi or limousine travel (including ride-sourcing) — regardless of turnover.
| Your situation | Must register for GST? | Charge GST? |
|---|---|---|
| Freelancer, GST turnover under $75k | No (optional) | Only if you register |
| Freelancer, GST turnover $75k or more | Yes, within 21 days | Yes |
| Rideshare or taxi driver | Yes, from day one | Yes |
| Non-profit under $150k | No (optional) | Only if you register |
What counts as GST turnover?
GST turnover is broadly your business's total income (not profit), minus any GST. Two things catch people out:
- It's income, not profit. If you invoice $80,000 but your expenses are $30,000, your turnover is still over the threshold.
- It's current or projected. You look at the last 12 months and the next 12 months. If you land a big contract that will push you over $75,000 this year, you may need to register now — not next year.
Some sales — such as GST-free sales and input-taxed sales — are treated differently. If you're near the threshold, check the ATO's detailed guidance or speak to a registered tax agent.
What to do when you cross the threshold
- Register within 21 days of becoming required to. You can register through the ATO or via business.gov.au.
- Update your prices. Decide whether you'll add 10% on top or absorb it (more below).
- Tell your clients. A short email explaining that you're now GST-registered — and what changes on your invoices — avoids surprises.
- Switch to tax invoices. Your invoices must now meet the tax invoice requirements.
- Lodge a BAS. You'll report and pay the GST you've collected, and claim GST credits on your business purchases.
Should you register for GST voluntarily?
You can register even if you're under $75,000. If you do, you generally need to stay registered for at least 12 months.
Reasons some freelancers register early
- You mostly work for GST-registered businesses. They can usually claim the GST back, so adding 10% often doesn't change their real cost.
- You have significant business expenses. Registration lets you claim GST credits on eligible purchases (equipment, software and so on).
- You expect to cross $75k soon and want to set things up once.
Reasons to wait
- Your clients are mostly consumers, who can't claim GST back — so your prices effectively rise 10% or your margin drops.
- Less admin. No BAS to lodge.
It depends on your clients and costs — this is a good one to run past a registered tax agent.
How GST changes your invoices and prices
GST is 10% on most goods and services. Once registered:
- Title your invoices "Tax invoice" and show the GST amount.
- If your price includes GST, the GST portion is one-eleventh of the total. (e.g. $1,100 total = $100 GST.) Moneysmart's GST calculator does the maths.
- If you're not registered, never write "tax invoice" or add GST — business.gov.au is clear on that.
| Price approach | Before GST | After registering | Your take-home (excl. GST) |
|---|---|---|---|
| Add GST on top | $1,000 | $1,100 incl. GST | $1,000 |
| Keep price the same | $1,000 | $1,000 incl. GST | $909.09 |
Working out your invoicing setup from scratch? See our complete sole trader invoicing guide.
Frequently asked questions
Do I need to charge GST if I earn under $75,000?
No — unless you choose to register voluntarily, or you provide taxi or ride-sourcing services. If you're not registered for GST, you don't charge it.
Is the $75,000 GST threshold based on profit or income?
It's based on GST turnover — broadly your business income, not your profit. You must register if your current or projected GST turnover is $75,000 or more.
How long do I have to register for GST?
Once you're required to register, you have 21 days to do so.
Can I register for GST voluntarily?
Yes. If you're under the threshold you can choose to register. If you do, you generally need to stay registered for at least 12 months.
How much is GST in Australia?
GST is 10% on most goods and services. If a price includes GST, the GST component is one-eleventh of the total.
This article is general information only, not tax, legal or financial advice. Rules change — check the linked ATO and business.gov.au pages or speak to a registered tax agent about your situation.