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MJE Business Services

Do I Need to Register for GST? The Turnover Rule Explained

Last reviewed: 2026-06-15BAS & GST

Do I Need to Register for GST? The Turnover Rule Explained

Short answer: you must register for GST once your business GST turnover hits $75,000 a year (or $150,000 for not-for-profits) - with one exception: if you drive taxi, limousine or rideshare, you must register from your very first dollar, no matter how little you earn.

It is one of the most common questions we hear from new business owners around Mortdale, Hurstville and the wider St George area: "Do I have to charge GST?" It depends on a single number - your GST turnover - and a few special rules. This guide explains them in plain English so you know exactly where you stand.

The main rule: the $75,000 threshold

You must register for GST if your business has a GST turnover of $75,000 or more per year. For not-for-profit organisations, the threshold is higher at $150,000 or more per year.

If your turnover is below the threshold, registering is optional - more on voluntary registration below.

There is also one important exception: if you provide taxi, limousine or ride-sourcing (rideshare) travel, you must register for GST regardless of your turnover. Even if you only drive a few hours a week, you need to be registered before your first trip.

Rideshare vs food delivery: a trap worth knowing

This catches a lot of people in the gig economy, so it is worth being precise. The "register from dollar one" rule applies to carrying passengers for a fare - Uber, Ola, Didi, taxis and limos.

It does not apply to food and parcel delivery. Driving for Uber Eats, DoorDash, Menulog or Amazon Flex is not classed as "taxi travel", so the normal $75,000 threshold applies - you only have to register once your delivery turnover reaches it. (You still need an ABN, and you can choose to register voluntarily to claim GST credits on fuel, tolls and the like.)

The grey area is when you do both - say, Uber rides plus Uber Eats. Because your ridesharing makes you register, that registration then covers all your business income, including the delivery side. If you are mixing gig platforms, it is worth a quick check so you get it right from the start.

What does "GST turnover" actually mean?

This is where people often trip up. GST turnover is not your profit, and it is not the same as your total sales in every case. It is your gross business income (your sales), excluding:

  • GST you have included in sales
  • sales that are not connected with Australia
  • input-taxed sales (such as residential rent and certain financial supplies)

You work it out on a rolling basis. You need to check both:

  • your current GST turnover - this month plus the previous 11 months, and
  • your projected GST turnover - this month plus the next 11 months.

If either figure reaches $75,000, you have hit the threshold. The "projected" test matters because it can catch you out early - if you sign a big contract or your sales are clearly heading past $75,000, you may need to register before you have actually banked the money.

When and how to register

Once your GST turnover reaches the threshold, you have 21 days to register. You can register:

  • online through the ATO's Business Portal or via myGovID and Online services for business
  • through your registered tax or BAS agent (this is where we can help), or
  • by phone with the ATO.

You will need an Australian Business Number (ABN) first - GST registration is linked to your ABN. If you are just starting out, our new business setup service can sort the ABN and GST registration together so nothing falls through the cracks. Still deciding whether to trade as a sole trader or a company? Our guide to sole trader vs company breaks down the differences.

Once registered, you generally report and pay GST through your Business Activity Statement (BAS), usually each quarter - see our guide to quarterly BAS due dates for the dates to diarise. If BAS time feels like a chore, our BAS and GST and bookkeeping and payroll services keep it tidy and on time.

What about voluntary registration?

If your turnover is under $75,000, you can still choose to register. There are good reasons to consider it:

  • you can claim GST credits on your business purchases (handy if you are buying equipment or stock)
  • it can look more established to larger clients who expect a tax invoice with GST
  • it avoids a scramble to register the moment you cross the threshold.

The trade-offs: you must add 10% GST to your prices (or absorb it), and you take on the BAS reporting obligation. If you register voluntarily, you generally need to stay registered for at least 12 months. Whether it is worth it depends on your customers, your margins and your costs - it is worth a quick chat before you decide.

What happens if you do not register when you should?

This is the part to take seriously. If you are required to register and you do not, the ATO can:

  • make you pay the GST on sales going back to the date you were required to register - even if you never charged your customers GST, meaning it comes out of your own pocket
  • charge penalties and interest on top.

That can turn into a nasty surprise. It is far cheaper to keep an eye on your turnover and register on time.

FAQ

Does the $75,000 include GST? No. GST turnover is worked out excluding any GST included in your sales. It is your gross sales income with GST and certain other amounts taken out.

I had one big month that pushed me over - do I have to register? Possibly. You look at your rolling 12-month current and projected turnover, not a single month. If a one-off spike does not push your 12-month figures to $75,000, you may still be under. If you are unsure, check with us before assuming either way.

Can I cancel my GST registration if my turnover drops? Yes, if you are no longer required to be registered and (where you registered voluntarily) you have been registered for at least 12 months. You apply to the ATO to cancel. We can advise whether it makes sense for your situation.

I drive for Uber Eats - do I have to register for GST? Not unless your delivery turnover reaches $75,000 (food delivery is not "taxi travel", so the normal threshold applies). But if you also do Uber rideshare rides, the rideshare rule means you must register, and that registration then covers your delivery income too. Either way you need an ABN.

Need a hand working out your turnover?

Working out whether you have crossed the line - and getting registered on time - is exactly the kind of thing we sort out every week for local businesses around Mortdale, Hurstville, Kogarah and the wider St George area. If you are not sure where you stand, get in touch or call (02) 9580 1167 and we will walk through it with you.

Written by the team at MJE Business Services, a registered tax agent (No. 26313222) serving the St George area since 2000.

This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.

Sources (ATO)

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