GST Registration & BAS Check for Sole Traders

If you run a business as a sole trader, freelancer or contractor in Australia, you must register for GST once your GST turnover reaches $75,000 in the current or next 12 months (A New Tax System (Goods and Services Tax) Act 1999, ss.23-5 and 23-15). If you drive for a ride-sourcing platform such as Uber, you must register from your first dollar of fares regardless of turnover (s.144-5). Once registered, you add 10% GST to taxable sales, issue tax invoices, claim GST credits on business purchases and lodge a Business Activity Statement (BAS), usually each quarter. Quarterly BAS for July to September is due on 28 October, and for October to December on 28 February.

Missing the threshold is a common and costly mistake. If you should have registered and didn’t, the ATO can backdate your registration and ask you to pay GST on sales you have already made, even though you never charged your customers for it. Lodging a BAS late can attract failure-to-lodge penalties under Schedule 1 to the Taxation Administration Act 1953 (s.286-75), and the general interest charge applies to unpaid amounts. Many sole traders also have to pay PAYG instalments towards their income tax through the same BAS. This check shows whether you need to register, whether your invoices and records are right, and what is due next.

Use this free tool to check whether you need to register for GST as an Australian sole trader or freelancer, whether your tax invoices and records are right, and what is due on your next BAS.