Do I Need GST for My New ABN?

GST is one of the most misunderstood parts of starting an ABN, and it causes unnecessary stress for new business owners.

The reality is much simpler than most people think. Most new ABN holders do not need GST, especially in their first year. Registering too early often creates paperwork and reporting obligations that provide no benefit.

The key is knowing when GST is actually required and when it isn’t.

When You Do NOT Need GST

You do not need to register for GST if:

• Your expected business turnover is under $75,000 for the financial year, and

• You are not operating in rideshare or taxi services

Turnover refers to your total business income before expenses, not profit. If you’re just starting out, doing a side hustle, or earning irregular income, GST is usually unnecessary.

Staying unregistered keeps things simple and avoids extra reporting.

When GST Is Mandatory

You must register for GST if:

• You expect your ABN income to reach $75,000 or more in a financial year, or

• You operate in rideshare or taxi services

Rideshare drivers are the main exception. Even if you earn a small amount through Uber or similar platforms, GST registration is required from day one due to how the law is written.

What Happens If You Register for GST

Once registered, you are required to:

• Charge GST on your invoices

• Lodge Business Activity Statements (BAS), usually quarterly

• Track GST collected and paid

• Keep more detailed records

For many new ABN holders, this extra administration is unnecessary unless GST is genuinely required.

Should You Register for GST Voluntarily?

Some people choose to register early, but this isn’t always a smart move.

Voluntary registration may make sense if your clients are GST-registered businesses or you have large GST-inclusive expenses. For most beginners, however, registering early simply creates more work with no upside.

Next Steps for ABN Holders

GST decisions affect how you invoice, report income, and manage cash flow. Getting it right early avoids future corrections and penalties.

If you’re running a small business under an ABN and want to complete your tax return correctly, you can do everything through GoTax here:
https://www.gotax.com.au/small-business-tax-return