Getting an ABN, Registering for GST (and When You Must)

9 min · video · Beginner

You hit A$75,000 in 12-month rolling turnover on a Tuesday. By that Friday, you legally must register for GST. Miss it and the ATO can backdate your registration, demand 6-12 months of unpaid GST, and add penalties. Most dropshippers learn this the hard way at the A$80-100k mark when their accountant does the year-end reconciliation. Today: when you must register, when you should register early, and the GST math that decides your retail pricing.

The A$75k threshold (and why it sneaks up)

The ATO requires GST registration when your annual turnover crosses or is projected to cross A$75,000 in any 12-month rolling period. "Turnover" is total revenue, not profit. So an A$30k/month operator hits the threshold in month 3.

Two triggers:

Past turnover. You hit A$75k in the last 12 months. Register within 21 days.
Projected turnover. You expect to hit A$75k in the current month plus next 11 months. Register before you hit it.

The second one is the trap. A new operator who ramps from A$0 to A$8k/month in 4 months has projected annual turnover of A$96k. The ATO position is that registration was required as of month 1 once the projection became clear. Backdated GST liability is a common audit finding.

What GST registration means

GST is a 10% tax on most goods and services sold in Australia. As a registered business, you:

Charge 10% GST on AU sales. A A