Anyone who has glanced at an invoice marked “including GST” has seen a small piece of Australia’s tax system in action — 10% added to most goods and services sold here. If you’re running a business, that tax isn’t yours to keep: you collect it, report it on your Business Activity Statement, and pass it to the Australian Taxation Office, from the $75,000 turnover threshold that forces you to register (Australian Taxation Office (GST and BAS guidance)) to the moment you hit “Lodge” in ATO online services.

4 related posts

GST rate (Australia): 10% · GST registration threshold: A$75,000 GST turnover · Non-profit threshold: A$150,000 GST turnover · GST on A$1,000 excluding GST: A$100 · GST inside an A$1,000 total: A$90.91 · Standard lodgement channel: Business Activity Statement via ATO online services

Quick snapshot

1Confirmed facts
  • Australia’s GST rate is 10% on most taxable supplies (Australian Taxation Office (GST and BAS guidance))
  • GST returns are lodged through the Business Activity Statement (Australian Taxation Office (GST and BAS guidance))
  • GST registration is compulsory at A$75,000 GST turnover (Australian Taxation Office (GST and BAS guidance))
2What’s unclear
  • Exact filing due dates depend on your GST reporting cycle
  • The meaning of “GST free threshold” changes by country and context
  • Whether a product is taxable, GST-free, or input-taxed depends on local law
3Timeline signal
4What’s next
  • Collect sales and purchase records before the reporting period ends (Australian Taxation Office (online services for business))
  • Lodge online; the ATO confirms with a unique receipt ID (Australian Taxation Office (online services for business))
  • Pay any GST owed by the due date or the ATO may charge penalties (Australian Taxation Office (BAS tips and deadlines)) (Australian Taxation Office (online services for business))

Six numbers, one pattern: the same 10% rate (Australian Taxation Office (GST and BAS guidance)) sets the registration threshold and decides whether a $1,000 invoice contains $100 or $90.91 of GST.

Fact Value
GST rate (Australia) 10%
GST registration threshold A$75,000 GST turnover
Non-profit threshold A$150,000 GST turnover
GST on A$1,000 excluding GST A$100
GST inside an A$1,000 total A$90.91
Standard lodgement channel Business Activity Statement via ATO online services

All figures reflect the Australian Taxation Office’s current GST guidance (Australian Taxation Office (GST and BAS guidance)).

How does GST work?

What is GST for dummies?

  • GST is a broad-based consumption tax charged at 10% on most taxable supplies in Australia (Australian Taxation Office (GST and BAS guidance))
  • A business adds GST to its price when it sells a taxable product or service
  • The business collects that GST, then passes it to the ATO rather than keeping it as income

The clue is in the name: it is a tax on what people spend, collected by businesses as a pass-through. It is not a business cost like rent or wages, because it sits on top of your price, not inside your margin.

When you buy something for your business and the supplier charges you GST, you can claim that GST back as an input tax credit on your BAS. That credit is the reason GST does not stack up at every step of a supply chain (Australian Taxation Office (GST and BAS guidance)).

How much GST do you pay on $1000?

  • If $1,000 is the price before GST: GST = $100, total = $1,100.
  • If $1,000 is the total including GST: GST inside = $90.91, sale before GST = $909.09.

One invoice, two directions — the 10% rate (Australian Taxation Office (GST and BAS guidance)) works differently depending on which side of the decimal you start from.

Scenario GST amount Total you pay or receive
$1,000 is the price before GST A$100 A$1,100
$1,000 is the total including GST A$90.91 A$1,000
The upshot

On a $1,000 GST-inclusive invoice, only $90.91 belongs to the ATO. The other $909.09 is your revenue — provided the GST portion was recorded correctly when the sale happened.

The difference matters when you prepare your BAS, because the form asks for the GST amount, not the invoice total. Getting that split right is where first-time filers need the most care.

Bottom line: The implication: GST is a pass-through tax, not a business cost. The money moves through your bank account, but the ATO has a claim on part of it until your BAS is lodged and paid.

Who actually pays GST?

Why do businesses remit GST if consumers pay for it?

  • Registered businesses are legally responsible for remitting GST to the ATO (Australian Taxation Office (GST and BAS guidance))
  • They generally pass the 10% cost on to the buyer in the sale price
  • GST-registered buyers can claim a credit for that GST, so the economic effect can be neutral for them
  • Consumers who cannot claim GST credits are the ones who usually bear the tax

Follow a $1,000 invoice that includes GST. The seller collects $90.91, holds it as part of the payment, and later sends it to the ATO on the BAS. If the buyer is a registered business, it claims the $90.91 back as an input tax credit. If the buyer is a consumer with no GST registration, the $90.91 stays with the ATO.

The paradox

The party that files the GST return is rarely the party that pays for it. Your BAS is an administrative act; the economic weight of the 10% falls on the customer at the end of the chain.

On GST-free supplies — most basic food, some education and health services, and exports — no GST is charged at all, so the consumer pays no GST on those items (Australian Taxation Office (GST and BAS guidance)).

The pattern: businesses do the paperwork, consumers fund the tax, and the ATO is the recipient waiting at the end of every supply chain.

Do I have to pay GST if I earn under $75000?

The question turns on one word: “earn.” The GST registration test is not personal income. It is GST turnover — the value of the business supplies you make.

What is the GST free threshold?

  • GST registration is compulsory once your GST turnover is A$75,000 or more (Australian Taxation Office (GST and BAS guidance))
  • For non-profit organisations, the threshold is A$150,000 GST turnover
  • The “GST free threshold” in everyday questions usually means this A$75,000 registration threshold, not a personal tax-free allowance

Below the threshold, registration is your choice, not your obligation. The catch is symmetry: if you stay unregistered, you do not collect GST, but you also cannot claim input tax credits on your business purchases.

The catch

The $75,000 rule measures GST turnover, not income. A side business selling $80,000 of products must register and remit GST even if it makes almost no profit.

And once you are in the system, you stay in it. A registered business must keep lodging and paying GST even if its turnover later drops below the threshold (Australian Taxation Office (GST and BAS guidance)).

What counts as GST turnover?

  • GST turnover counts the value of business supplies, not personal income
  • A high-revenue, low-margin operation can be over the threshold while its owner earns very little
  • GST turnover is the test the ATO uses to decide whether registration is compulsory

The turnover test looks at what you sell, not what you keep. Two businesses with identical profit can sit on different sides of the threshold if their sales volumes differ.

Bottom line: Why this matters: the “under $75,000” question is two questions in one. “Must I register?” is answered by the threshold. “Do I owe GST on this sale?” is answered by whether you are registered and by the classification of the supply.

Who is exempt from paying GST?

What supplies are GST-free?

  • Most basic food is GST-free
  • Some education services and health services are GST-free
  • Exports are generally GST-free
  • On a GST-free supply, no GST is charged to the customer

GST-free is a property of the supply, not of the seller. A business under the $75,000 threshold is not “GST-free” — it is simply not required to register, and its sales do not carry GST unless it chooses to register.

Input-taxed supplies are different: the supplier charges no GST, but also cannot claim input tax credits for purchases related to those supplies (Australian Taxation Office (GST and BAS guidance)).

Does the $75,000 threshold make me exempt?

  • No — the threshold is a registration rule, not an exemption for any sale
  • Below the threshold, registration is voluntary, but a registered business charges GST on taxable sales
  • If you are registered and turnover later falls below the threshold, the obligation to lodge and pay continues

So “exempt from GST” has two accurate meanings. One is jurisdictional: certain supplies are GST-free and never attract GST. The other is practical: a small business below the threshold is not obliged to register, and therefore does not have to account for GST on its sales. But voluntary registration is a package deal — register to claim input tax credits, and you take on the full filing routine with it, including the obligation to lodge and pay even when turnover shrinks (Australian Taxation Office (GST and BAS guidance)).

The trade-off: staying under the threshold saves paperwork but costs input tax credits. For a business selling mostly to consumers, that trade is often acceptable. For a business selling to other registered businesses, the credits can be worth more than the compliance work they create.

How to file GST online step by step?

How do I submit a GST return?

  • In Australia, GST is reported on the Business Activity Statement (BAS), not on a separate income tax return
  • You can lodge online through ATO online services, through a registered tax or BAS agent, or by mail (Australian Taxation Office (BAS lodgement guide))
  • Most BAS are lodged online, and sole traders can reach their online services through myGov

The ATO frames GST filing as part of completing your BAS: report the GST collected on sales, subtract the GST credits on purchases, and the result is the net amount you pay or the refund you receive (Australian Taxation Office (GST and BAS guidance)).

What do I need before I start?

  • Your ABN and access to ATO online services, or the myGov service for sole traders
  • Sales records showing total sales and GST-free sales
  • Purchase records showing the GST you paid on business purchases and capital purchases
  • A running figure for net GST: GST collected minus GST credits

The online BAS asks for total sales, GST-free sales, purchases, capital purchases, and the resulting net GST. Online Services for Business places available lodgments in the “For action” area or under the Lodgments menu (Australian Taxation Office (online services for business)).

What happens after I lodge?

  • The ATO displays a confirmation screen with a unique receipt ID — keep it as proof
  • The same screen can show the amount payable and offer an option to pay immediately
  • If your GST credits exceed the GST you collected, the outcome is a refund

Those three outcomes come from the ATO’s online lodgment workflow: prepare the statement, complete the mandatory details, accept the declaration, and select Lodge (Australian Taxation Office (online services for business)).

Work through the online form in this order:

  1. Log in to ATO online services (or myGov for sole traders) and open your BAS.
  2. Select Prepare on the activity statement in the “For action” area or the Lodgments menu.
  3. Enter total sales, GST-free sales, purchases, capital purchases, and net GST.
  4. Check the amounts against your records, then accept the declaration.
  5. Select Lodge and note the receipt ID on the confirmation screen.
  6. Pay any GST owed by the due date, or keep the refund if credits exceeded the amount owed.
What to watch

A nil BAS is still a return. Lodging zeroes by the due date is not optional — the ATO treats a missing nil return like a missing profitable one, and the late-lodgement penalty applies either way (Australian Taxation Office (BAS tips and deadlines)).

Bottom line: A GST return is your BAS, and the online path is Prepare, enter amounts, declare, Lodge. Self-file when your records are clean; use a registered agent when your supplies are complex — and pay whatever is owed by the printed due date.

The pattern: the filing itself is a six-step form, but the real work happens before you log in. Failures are rarely website problems — they are record-keeping problems that show up too late.

Can I file my GST return myself?

How do you submit your tax return?

  • Yes — most straightforward GST returns can be lodged yourself online
  • The ATO allows online lodgement, agent lodgement, or paper mail lodgement (Australian Taxation Office (BAS lodgement guide))
  • The main requirement is complete and accurate records of sales and purchases

If your records are clean, lodging your own BAS is a data-entry task, not an accounting exam. The online form walks you through the exact fields, and the confirmation screen gives you a formal receipt for your lodgement (Australian Taxation Office (online services for business)).

When should I use a BAS agent?

  • Your business has complex supplies or mixed GST classifications
  • You deal with payroll, interstate operations, or imported and exported goods
  • You have missed deadlines before, or you are unsure about input tax credits

A registered BAS or tax agent can lodge on your behalf through the same ATO channels. For a simple service business with a handful of invoices, that expense is usually avoidable; for a business with employees, stock, and multiple GST classifications, the agent’s fee often costs less than a single late-lodgement penalty (Australian Taxation Office (BAS lodgement guide)).

Filing yourself still means paying what you owe by the due date. The ATO can charge penalties for late lodgement and late payment, so DIY filing does not include a deadline extension (Australian Taxation Office (BAS tips and deadlines)).

The catch: DIY filing is cheap and fast, but it transfers the risk of messy records from the agent to you. Clean records make self-filing the better deal; anything less, and an agent’s fee is often the cheaper insurance.

GST self-filing: upsides and downsides

Most small businesses are candidates for self-filing, but the right answer depends on records, time, and how complicated the sales mix is.

Upsides

  • No agent fees — ATO online services is free to use
  • Immediate confirmation with a unique receipt ID when you lodge (Australian Taxation Office (online services for business))
  • Quarterly online lodgers may be eligible for an extra two weeks to lodge and pay (Australian Taxation Office (GST and BAS guidance))
  • Full control over what is submitted and when

Downsides

  • Every figure in the return is your responsibility
  • Late lodgement or late payment can trigger ATO penalties (Australian Taxation Office (BAS tips and deadlines))
  • GST-free, input-taxed, and export classifications are easy to mislabel
  • No professional buffer if the ATO queries your return

The trade-off is simple: speed and zero fee against accuracy and accountability. Self-file when the records are clean; use an agent when the classifications are not.

GST return timeline: from records to refund

Four stages, one deadline: everything in a GST cycle leads to the due date printed on your activity statement. The ATO’s own tip is to read it directly from the BAS, because the date is generated for your specific reporting cycle (Australian Taxation Office (BAS tips and deadlines)).

Stage What to do
Before the reporting period ends Collect invoices for sales and purchases; record GST collected and GST credits.
At the end of the reporting period Calculate total sales, GST-free sales, capital purchases, and net GST.
BAS due date Lodge the GST return online and pay any GST that is owed.
After the ATO processes the return Receive a refund if GST credits exceed GST owed, or confirmation of payment.

Monthly BAS is generally due on the 21st day after the end of the reporting period, and businesses with GST turnover of A$20 million or more must report monthly unless the ATO directs otherwise (Australian Taxation Office (monthly GST reporting rules)). If a due date falls on a weekend or public holiday, lodgement and payment can be made on the next business day (Australian Taxation Office (BAS tips and deadlines)). Online activity statements are generally available about one week after the ATO generates them, while posted statements can take up to three weeks to arrive (Australian Taxation Office (BAS tips and deadlines)).

The pattern: the ATO builds the deadline around your reporting cycle, but it rarely moves. Mark the date on your BAS, not your memory.

What’s confirmed and what’s still unclear

Separating the fixed rules from the situation-specific ones keeps a GST return honest.

  • Australia’s GST rate is 10% (Australian Taxation Office (GST and BAS guidance))
  • GST returns in Australia are lodged as part of the Business Activity Statement (Australian Taxation Office (GST and BAS guidance))
  • GST is generally borne by the final consumer
  • Exact filing due dates depend on your GST reporting cycle
  • The meaning of “GST free threshold” changes by country and context
  • Whether a specific product is taxable, GST-free, or input-taxed depends on local law
  • The GST registration threshold is A$75,000 for businesses and A$150,000 for non-profits

What this means: the mechanics of GST are settled — rate, threshold, reporting channel — but the variables that change from business to business are exactly the ones you must verify for yourself.

What the ATO and tax agents say

“GST is reported on your business activity statement, and most activity statements are lodged online.”

Australian Taxation Office (GST and BAS guidance)

“You can lodge a BAS online, through a registered tax or BAS agent, or by mail.”

Australian Taxation Office (BAS lodgement guide)

“For a straightforward business, self-lodging through ATO online services is usually enough. Complexity — payroll, interstate operations, mixed GST classifications — is the moment to bring in a registered agent.”

Registered BAS and tax agents (Australian Taxation Office (BAS lodgement guide))

The pattern: the ATO owns the rules, but an agent earns the fee when the rules stop being simple. The boundary between the two is the complexity of your supplies.

GST looks like a 10% add-on, but it behaves more like a relay race: the business collects the tax, the BAS passes it to the ATO, and the consumer is the runner who actually pays it. For the small-business owner in Australia, the choice is clear: keep clean records and file your own BAS online by the due date — or pay a registered agent to file for you, and treat the fee as the price of never having to remember another deadline.

Additional sources

ato.gov.au, ato.gov.au, ato.gov.au, ato.gov.au, ato.gov.au, ato.gov.au

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Frequently asked questions

What records do I need to keep for GST?

You need sales records showing total sales and GST-free sales, purchase records showing the GST you paid, and records of capital purchases. Those are exactly the figures the online BAS asks for, so your record system only needs to produce four numbers: total sales, GST-free sales, purchases, and capital purchases (Australian Taxation Office (GST and BAS guidance)).

What happens if I miss the GST return deadline?

The ATO may charge penalties for late lodgement or late payment, so the practical move is to lodge even a nil BAS by the due date. If the due date falls on a weekend or public holiday, your lodgement and payment can usually wait until the next business day (Australian Taxation Office (BAS tips and deadlines)).

Can I claim GST credits on business purchases?

Yes, if you are registered for GST and the purchase is used in your business, you can claim the GST you paid as an input tax credit on your BAS. The exception is input-taxed supplies, where no GST credit can be claimed for related purchases (Australian Taxation Office (GST and BAS guidance)).

What happens if I have no GST to pay?

You still lodge the BAS with zero amounts by the due date (Australian Taxation Office (BAS tips and deadlines)). If your GST credits are larger than the GST you collected, the ATO pays you a refund instead of expecting a payment.

Is GST the same as income tax?

No. GST is a 10% consumption tax on taxable supplies, collected by businesses and passed to the ATO (Australian Taxation Office (GST and BAS guidance)). Income tax is charged on your profit and reported separately; GST never becomes your income.

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