As a business owner, you are required to register for GST if your business has a GST turnover (gross income minus GST) of $75,000 or more. GST turnover is your business’s gross income, not your business’s profit. You must also register for GST if you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover (this applies to both owner drivers and if you lease or rent a taxi) and, if you want to claim fuel tax credits for your business.
If you haven’t registered for GST and you become aware that your GST turnover will exceed the annual turnover threshold of $75,000, you are required to register for GST within 21 days of reaching the threshold.
If you don’t register for GST and are required to do so, you may have to pay GST on the sales you have made since the date you became required to register. This could happen even if you didn’t include GST in the price of those sales. You may also have to pay penalties and interest.
If your GST turnover is below the $75,000 per year threshold, registering for GST is optional.
You may choose to register for GST if your turnover is below the $75,000 threshold, however once you’re registered for GST, regardless of your business turnover, you must generally stay registered for at least 12 months.
