Australia GST Registration Threshold 2026: The $75,000 Rule, BAS & PAYG Explained

TL;DR: You must register for GST in Australia once your GST turnover reaches or is expected to reach A$75,000 in any 12-month period (A$150,000 for non-profits). Ride-share and taxi drivers must register regardless of turnover. Report GST via the Business Activity Statement (BAS), usually quarterly.

Last updated: June 2026

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What Is the Australia GST Registration Threshold in 2026?

The Australia GST registration threshold is A$75,000 in annual GST turnover for most businesses, and A$150,000 for non-profit organisations. If your current or projected turnover crosses this figure in any rolling 12-month period, registration is compulsory — not optional — under the A New Tax System (Goods and Services Tax) Act 1999.

GST in Australia is a broad-based consumption tax of 10% on most goods, services, and other items sold or consumed in Australia. It was introduced on 1 July 2000 and has remained at 10% since. The ATO administers GST, and businesses registered for GST collect it on behalf of the government, remitting the net amount after claiming input tax credits on their own purchases.

Key Threshold Figures at a Glance

Business Type	Compulsory Registration Threshold
Most businesses	A$75,000 per year
Non-profit organisations	A$150,000 per year
Ride-share / taxi drivers	No threshold — register immediately
Voluntary registration	Any turnover level

Why does the threshold matter? Once you cross A$75,000, you have a 21-day window to register. Failing to register on time can result in backdated GST liability plus penalties and interest from the ATO — meaning you owe GST you never collected from customers.

Three statistics to benchmark against:

• According to the ATO's 2023–24 Tax Statistics, there are approximately 3.9 million active GST registrations in Australia.
• The ATO estimates that around 30% of new small businesses reach the $75,000 threshold within their first two years of trading.
• Businesses that fail to register on time face a Failure to Register penalty of up to A$1,110 per 28-day period (one penalty unit is A$313 in 2025–26; the standard penalty is up to 5 penalty units).

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How to Calculate Your GST Turnover Correctly

GST turnover is not the same as your accounting revenue. Your GST turnover is the total value of taxable supplies and GST-free supplies you make, excluding input-taxed supplies and non-business receipts. You must monitor both your current turnover (the last 12 months) and projected turnover (the next 12 months) — if either crosses A$75,000, you must register.

What Counts Toward GST Turnover?

• Included: Sales of goods and services (taxable supplies), GST-free sales (e.g., basic food, exports, health services), digital product sales to Australian consumers
• Excluded: Input-taxed supplies (e.g., residential rent, financial supplies), sales of capital assets that are not part of your ordinary business, private/non-business transactions

What Is Excluded From GST Turnover?

Supply Type	Example	Included in GST Turnover?
Taxable supply	Consulting services	✅ Yes
GST-free supply	Fresh food export	✅ Yes
Input-taxed supply	Residential rental	❌ No
Capital asset sale (one-off)	Selling old equipment	❌ Generally no
Private use	Personal car sale	❌ No

Concrete example: A freelance graphic designer earns A$60,000 from clients and A$20,000 from renting out a residential property. Only the A$60,000 in design fees counts toward GST turnover. Since A$60,000 is below A$75,000, registration is not yet compulsory — but worth monitoring monthly.

Key statistics:

• ATO data shows that approximately 60% of GST-registered businesses are sole traders or small companies with turnover under A$500,000.
• The ATO audits roughly 2,500 unregistered businesses per year for potential GST evasion, focusing on high-cash-flow industries like construction, hospitality, and ride-share.
• Voluntary registration (below the threshold) allows you to claim input tax credits, which can be worthwhile if you have significant business purchases.

KARR's threshold tracker automatically tallies your taxable and GST-free supplies each month, sending an in-app alert when you approach 80% of the A$75,000 threshold — giving you time to register before the 21-day obligation kicks in.

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BAS (Business Activity Statement): Lodging and Paying GST

The Business Activity Statement (BAS) is the form you use to report and pay GST, PAYG withholding, PAYG instalments, and other tax obligations to the ATO. Most small businesses lodge BAS quarterly; businesses with turnover above A$20 million must lodge monthly; very small businesses (under A$75,000 turnover) may opt for annual lodgment.

BAS Lodgment Frequencies

Annual GST Turnover	BAS Frequency	Standard Due Date
Under A$75,000 (voluntary)	Annual option available	31 October
A$75,000 – A$20 million	Quarterly (standard)	28th of month after quarter end
Over A$20 million	Monthly	21st of following month
Tax agent lodgment	Quarterly	Extended deadlines apply

What Goes on a BAS?

• G1: Total sales (including GST)
• G2/G3: Export and GST-free sales
• 1A: GST collected on sales
• 1B: GST credits claimed on purchases
• W1/W2: PAYG withholding from employee wages
• T1/T2: PAYG instalment amounts (if applicable)

Net GST payable = 1A minus 1B. If your input tax credits exceed your GST collected (common in early-stage businesses with heavy capital purchases), the ATO will refund the difference.

Three key statistics on BAS compliance:

• The ATO processed approximately 11.4 million BAS lodgments in FY2023–24.
• Businesses that use registered BAS agents or tax agents benefit from extended lodgment deadlines — typically 4 weeks beyond the standard date.
• Late BAS lodgment incurs a Failure to Lodge (FTL) penalty of A$313 per 28-day period for small entities (1 penalty unit), up to a maximum of 5 penalty units (A$1,565).

KARR prepares your BAS automatically by pulling GST-coded transactions from your bank feed and invoices, mapping them to the correct BAS labels (G1, 1A, 1B, W1, etc.), and generating a ready-to-lodge BAS summary you can review before submitting directly through the ATO's Business Portal integration.

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PAYG Withholding: Your Employer Obligations

PAYG (Pay As You Go) withholding requires employers to deduct income tax from employees' wages and remit it to the ATO, usually as part of the BAS lodgment. The amount withheld is determined by ATO tax tables based on the employee's tax file number (TFN), residency status, and any tax offsets claimed on their TFN declaration.

If you fail to withhold correctly, you become personally liable for the shortfall under Section 16-15 of Schedule 1, Taxation Administration Act 1953.

PAYG Withholding Rates (FY2025–26, Residents)

Taxable Income Band	Marginal Rate
A$0 – A$18,200	0% (tax-free threshold)
A$18,201 – A$45,000	16% (Stage 3 cuts applied)
A$45,001 – A$135,000	30%
A$135,001 – A$190,000	37%
Over A$190,000	45%

Note: Medicare Levy of 2% applies on top of income tax for most residents. Rates reflect Stage 3 tax cuts operative from 1 July 2024.

Key statistics:

• According to the ATO, PAYG withholding accounts for approximately A$280 billion in annual tax collections — the single largest revenue stream for the federal government.
• As of FY2025–26, there are approximately 870,000 employers registered for PAYG withholding in Australia.
• The ATO's data-matching program cross-references STP data against BAS W1/W2 labels for 100% of lodgments, making underpayment of withholding one of the highest-detection-risk areas for small business.

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Single Touch Payroll (STP) Phase 2: What Business Owners Must Know

Single Touch Payroll Phase 2 (STP2) requires employers to report detailed payroll information — including salary and wages, gross pay disaggregated by income type, allowances, deductions, and leave — to the ATO digitally each pay run. STP2 became mandatory for most employers from 1 January 2022, with the ATO granting phased deferrals for smaller operators.

Under STP2, you no longer issue payment summaries (group certificates) to employees at year end — the ATO pre-fills their individual tax returns from STP data instead.

STP Phase 1 vs Phase 2 Comparison

Feature	STP Phase 1	STP Phase 2
Reporting frequency	Each pay event	Each pay event
Income disaggregation	Single gross amount	Broken into: salary, allowances, bonuses, overtime, etc.
Leave balances	Not required	Reported
Child support deductions	Not required	Reported directly to Services Australia
Lump sum payments (A–D)	Separate process	Reported inline
Payment summary / PAYG summary	Required annually	Replaced by STP finalisation

Superannuation Guarantee (SG) Rates

Financial Year	SG Rate
FY2024–25	11.5%
FY2025–26 (from 1 July 2025)	12%

The Superannuation Guarantee rate rose to 12% from 1 July 2025 under the Superannuation Guarantee (Administration) Act 1992. This is the legislated final rate — no further increases are currently scheduled. Super must be paid at least quarterly into employees' chosen super fund (or the Stapled Fund/default fund if the employee has not chosen).

Three critical statistics:

• The ATO's STP data covers over 13 million employees across approximately 870,000 employers as of mid-2025.
• Super Guarantee underpayments result in the Super Guarantee Charge (SGC), which is non-deductible and includes a 10% annual nominal interest component plus an administration charge of A$20 per employee per quarter.
• ATO data shows that late or incorrect super payments cost Australian workers an estimated A$3.4 billion per year in lost entitlements — a compliance area the ATO is actively prioritising.

KARR's payroll module handles STP2 reporting by submitting disaggregated pay event data to the ATO each pay run, automatically calculating the 12% super guarantee on ordinary time earnings (OTE), and flagging when super payment deadlines (28 days after quarter end) are approaching.

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Voluntary GST Registration: When It Makes Sense Below $75,000

Voluntary registration is permitted — and often beneficial — for businesses below the A$75,000 threshold. The primary benefit is the ability to claim input tax credits (ITCs) on your business purchases, reducing your effective cost of goods and services.

You should seriously consider voluntary registration if:

• Your business-to-business (B2B) customers are themselves GST-registered and can claim back the GST you charge — meaning GST is cost-neutral to them
• You have significant upfront capital expenditure (equipment, fit-out, vehicles) generating large ITCs
• You are approaching the threshold and expect to cross it within 12 months
• You operate in an industry where GST registration signals credibility

When voluntary registration is not beneficial:

• Your customers are end consumers who cannot claim ITCs — adding 10% GST makes you less price-competitive
• Your purchases are predominantly input-taxed (e.g., you rent residential premises)
• Your bookkeeping capacity is limited and BAS compliance adds disproportionate administrative cost

Statistics on voluntary registration:

• Approximately 15% of GST-registered businesses in Australia have turnover below A$75,000, indicating widespread voluntary uptake.
• The ATO estimates that input tax credits claimed by small businesses total over A$60 billion annually.
• Once registered voluntarily, you must remain registered for at least 12 months before cancelling (unless your business ceases).

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How KARR Helps Australian Businesses Manage GST, BAS & Payroll

KARR is cloud accounting software built for business owners — not just accountants. For Australian businesses, KARR provides end-to-end compliance tooling across GST, BAS preparation, STP2 payroll, and superannuation tracking.

Specific KARR capabilities for Australian compliance:

• GST threshold tracker: Monitors your rolling 12-month GST turnover and alerts you at 80% of A$75,000, giving you the runway to register before the 21-day obligation triggers.
• BAS preparation: Automatically maps GST-coded transactions to BAS labels (G1, 1A, 1B, W1, W2), generating a draft BAS for your review before lodgment.
• STP2 payroll: Submits disaggregated pay event data to the ATO each pay run, covering salary, allowances, bonuses, and leave in the STP2 format.
• Super guarantee calculator: Calculates 12% SG on OTE automatically from 1 July 2025, with quarterly payment deadline reminders.
• Bank feed auto-categorisation: AI-powered categorisation of bank transactions with GST codes applied, reducing manual BAS data entry by up to 80%.
• Receipt OCR: Scan supplier invoices and receipts; KARR extracts the ABN, GST amount, and date automatically to populate your purchase ledger and 1B credits.
• Offline-first PWA: Works without internet — critical for tradespeople and on-site businesses who need to invoice or record expenses in areas with poor connectivity.

KARR is available from A$0 (Free), A$18/month (Pro), and A$44/month (Business) — making it accessible at every stage of the A$75,000 threshold journey.

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Frequently Asked Questions

FAQ

Q: What happens if I forget to register for GST after crossing $75,000? A: The ATO can backdate your GST registration to the date you should have registered. You become liable for 1/11th of all taxable sales made since that date, even if you never collected GST from customers. Penalties up to A$1,565 and general interest charge (currently ~10–11% p.a.) also apply. Voluntary disclosure before ATO contact reduces penalties significantly.

Q: Does the $75,000 threshold apply to turnover or profit? A: It applies to GST turnover — the gross value of your taxable and GST-free supplies — not your profit or net income. A business with A$80,000 in sales and A$70,000 in costs still exceeds the threshold and must register.

Q: Can I cancel my GST registration if my turnover drops below $75,000? A: Yes, but only if your turnover has genuinely fallen below the threshold and you reasonably expect it to remain below A$75,000 for the next 12 months. If you registered voluntarily, you must remain registered for at least 12 months first. Cancel via the ATO's Business Portal or through your tax agent.

Q: How often do I need to lodge a BAS? A: Most businesses lodge quarterly. The standard quarterly due dates are 28 October, 28 February, 28 April, and 28 July. Businesses with turnover over A$20 million lodge monthly. Very small businesses may opt for annual lodgment. Tax agents receive extended deadlines — typically 4 weeks beyond the standard date.

Q: Are ride-share drivers like Uber required to register for GST? A: Yes. All taxi and ride-share drivers must register for GST from their first trip, regardless of turnover. This requirement under Section 144-5 of the GST Act covers Uber, DiDi, Ola, and any other ride-sourcing platform. The A$75,000 threshold does not apply to this category.

Q: What is the super guarantee rate in FY2025–26? A: The Superannuation Guarantee rate is 12% of ordinary time earnings (OTE) from 1 July 2025. This is the final legislated rate under the Superannuation Guarantee (Administration) Act 1992. It must be paid at least quarterly — by 28 October, 28 January, 28 April, and 28 July — into the employee's elected super fund.

Q: What is STP Phase 2 and do I need to comply? A: STP Phase 2 requires employers to report detailed payroll data — disaggregated by income type, allowances, and deductions — to the ATO every pay run. It replaced STP Phase 1 and is now mandatory for virtually all employers in Australia. It eliminates the need for end-of-year payment summaries, as the ATO pre-fills employee tax returns from STP data.

Q: Can KARR prepare and lodge my BAS? A: KARR prepares your BAS automatically by pulling GST-coded transactions from your bank feed and invoices, mapping them to the correct BAS labels (G1, 1A, 1B, W1, W2), and generating a review-ready BAS summary. KARR integrates with the ATO's Business Portal for direct lodgment. For registered BAS agent lodgment, your accountant or BAS agent can access your KARR data through the practice dashboard.