What is GST and how to Register?

John Reilly • April 23, 2025

Your obligations under GST

Goods and Services Tax (GST) is a tax we all pay when we are the end user buying a product or service. The end user is generally an individual and the purchase is non-business related. GST increases the costs for end users by 10%, i.e. the GST rate. 


GST applies to almost every purchase you make. There are some exemptions for fresh food, health, education, and financial services. GST tax is not a business tax, if you are registered for GST, you will never actually pay GST. You are eligible for GST credits when a business buys goods and services. 


However, the burden of collecting the GST for the government is endured by business owners. To register for GST, it is an additional step after you have applied for your Australian Business Number (ABN). You are not required to register for GST until your turnover is over $75,000. If you are working as an employee and as a sole trader, any income from your wage as an employee does not make up the $75,000.

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