It's a question almost every growing business hits, and the rules are simpler than most people think. Here's when you have to register, when you might choose to, and what happens once you do.
The $75,000 rule
If your business turns over $75,000 or more in a 12-month period, registration is compulsory. That's turnover, not profit, and it works on a rolling basis. You have to register within 21 days of crossing the threshold, or once you reasonably expect to cross it.
Registering early by choice
You can register before you hit $75,000, and sometimes it makes sense. If you buy a lot of stock or equipment, registering lets you claim back the GST on those purchases. The trade-off is you then have to charge GST and lodge a BAS, so it's a judgment call.
What changes once you're registered
You add 10 percent GST to your prices, you can claim back the GST you pay on business expenses, and you lodge a BAS, usually quarterly. The GST you collect was never your money, so keeping it separate from day one saves you a scramble later.
Watch the threshold as you grow
Plenty of businesses cross $75,000 without noticing and end up registering late, which the ATO can backdate. If you're getting close, it's better to plan the timing than to react to it.
The bottom line
The $75,000 line is the one to watch. If you're near it or unsure whether early registration would help, a quick check of your numbers gives you a clear answer rather than a guess.
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