How to Register for GST in Australia: StartUp Guide for Founders.

When you launch a business, most people focus on sales, branding, and raising capital. Cool. But if you ignore your tax obligations, you’re building on shaky ground. One of the biggest ones? Getting your GST sorted.

If you don’t register when you’re supposed to, the ATO won’t tap you on the shoulder — they’ll hit you with backdated tax bills, interest, and penalties. You’ll waste hours fixing stuff that could’ve been done in 10 minutes.

Done right, GST keeps you compliant, sharpens your books, and makes your business look more legit.

Done wrong, it’s a mess.

This guide explains how to register for GST in Australia step-by-step, covering thresholds, BAS statements, and the differences between cash vs accrual GST methods.

What Is GST?

GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. Businesses collect GST on behalf of the Australian Taxation Office (ATO) when they sell products or services, then report and remit it regularly through their

Business Activity Statements (BAS).

Here’s what GST includes:

• Sales of goods or services within Australia

• Importation of goods

• Some digital products or services sold online

If your business earns (or expects to earn) over the GST registration threshold of $75,000 per year ($150,000 for non-profits), you must register for GST with the ATO.

Tip: Even if you’re not over the threshold, voluntary registration can sometimes work in your favour — especially if you’re investing heavily and want to claim input tax credits.

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Why It Matters

1. It’s the law (above the threshold)

   Once your turnover hits $75,000, you have 21 days to register. Miss that, and the ATO can backdate your registration and charge penalties.

   
   

2. You can claim input tax credits

   When registered, you can claim GST credits on business purchases and expenses. That can add up to serious savings if you’re investing in equipment, software, or professional services.

   
   

3. Builds trust and credibility

   Registering for GST shows customers, investors, and suppliers that you’re legit and playing by the rules.

   
   

4. Makes you investor-ready

   VCs and banks look at tax compliance when doing due diligence. Registering for GST early shows you’re running a tight ship.

   
   

What You Need Before Registering

Before you register for GST, make sure you have:

• An ABN (Australian Business Number)

• Business structure confirmed (sole trader, company, etc.)

• Bank account linked to your business

• Estimated or actual turnover

• Your business details (legal name, trading name, address)

IMPORTANT: If you already have an ABN, you can complete your ATO GST registration through the same portal.

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How to Register for GST:

Step-by-Step

Step 1: Log in to the ATO Business Portal

Head to the ATO’s Business Portal or use myGovID if you’re a sole trader.

Companies and trusts can also register through a tax agent.

Step 2: Choose the GST option

Under “Manage ABN,” select the option to register for GST.

Enter your turnover estimate and GST start date.

Step 3: Choose your accounting method

You’ll need to pick between:

• Cash basis — Report GST when you receive or pay cash

• Accrual basis — Report GST when you issue or receive invoices

Rule of thumb: If you’re early-stage and cash-flow sensitive, choose cash basis. If you run on credit terms and need accrual reporting discipline, choose accrual.

CASH BASIS  vs  ACCRUAL BASIS

(General info only — get advice from an Australian accountant/lawyer for your situation.)

Aspect	Cash Basis	Accrual (Non-Cash) Basis
When GST is reported	When money is received/paid	When invoices are issued/received
Best for	Startups, small business, services paid at time of delivery	Businesses with 30–60 day terms, higher volume invoicing
Cash flow impact	Aligns GST with cash on hand	You may pay GST before being paid by customers
BAS complexity	Usually simpler	More reconciliation work
Pros	Easier on cash flow; fewer timing issues	Cleaner revenue matching; useful for larger operations
Cons	Less matching to accrual accounts	Can strain cash flow; timing differences to manage
Common mistakes	Mixing methods in software	Forgetting to remit GST on unpaid invoices
Simple example	Invoice today, get paid next month → Report next month	Invoice today, get paid next month → Report this month

Step 4: Submit your registration

Once submitted, you’ll receive confirmation. Your GST registration becomes active from the date you nominated (or the date ATO backdates it to).

Step 5: Set up your bookkeeping

Ensure your accounting software (e.g., Xero, MYOB, QuickBooks) is set to record GST correctly. You’ll need this for quarterly BAS reporting.

Mentoring Tip: Choose software that makes GST accounting software setup simple from day one.

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What It Costs and How Long It Takes

• Cost: $0 if you register yourself via the ATO

• Time to register: Usually same-day approval online

• Ongoing admin: Quarterly BAS statements in Australia

Money-Saving Tip: If you’re not confident, work with a registered BAS agent or accountant who can also help you claim back the most GST.

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Common Mistakes Business Owners Make

Missing the $75K threshold → Don’t track income properly, miss mandatory registration.

Registering too late → The ATO can backdate and add penalties.

Choosing the wrong accounting method → Accrual may complicate startup cash flow.

Incorrect GST setup in software → Leads to BAS filing errors.

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The Bottom Line

Register early, do it right, and you stay protected, efficient, and investor-ready. Wait too long? You’re not just behind — you’re at risk.

Set up a clear system for lodging your BAS every quarter — whether you handle it yourself, hand it to a bookkeeper, or leave it with your accountant.

GST might not be the flashiest part of running a business — but skip it, and it’ll cost you.

GST might not be the flashiest part of running a business — but skip it, and it’ll cost you.

Frequently Asked Questions (FAQs)

When do I need to register for GST in Australia?

You must register for GST when your turnover hits $75,000. Non-profits: $150,000. You have 21 days to register once you cross the threshold.

Can I register for GST as a sole trader?

Yes — sole traders can register via the ATO Business Portal using their ABN.

What’s the difference between cash and accrual accounting for GST?

Cash = report when money moves. Accrual = report when invoicing. Startups usually prefer cash.

What happens if I don’t register for GST when I’m supposed to?

The ATO can backdate, charge penalties, and you’ll miss out on input credits.

How do I claim GST credits after registering?

Keep tax invoices and set up your accounting software correctly. Credits are claimed in your BAS.