When Do I Need to Charge GST?
You charge GST when you are registered for GST and you make a taxable sale. If you are not registered, you generally do not add GST at all.
In this answer
- Understand the link between registration and charging GST
- Recognise sales that may not carry GST
- Know when you might need to register
- Find out where to confirm your position
5 min
Registration is the trigger
Charging GST is not a free choice — it follows from being registered for GST. If you are registered and you make a taxable sale, you add GST to the price and later account for it to the ATO. If you are not registered, you generally do not charge GST on your sales at all.
So the real question for most small businesses is not 'should I charge GST?' but 'am I required to register?'. That depends on your turnover and circumstances, measured against a test the ATO sets. Because the threshold is indexed and your trading can change through the year, confirm your registration position with the ATO or your accountant rather than guessing from an old figure.
Not every sale carries GST
Even when you are registered, not everything you sell automatically has GST on it. Australian GST law treats some supplies as GST-free and others as input-taxed, which changes how GST applies. Common everyday examples include certain food, some health and medical items, and particular financial supplies — but the categories are detailed and have conditions.
The practical point is that being registered does not always mean adding GST to everything you sell. If you sell anything that might fall into a special category, check how GST treats it. Misclassifying a sale can lead to charging GST you should not, or missing GST you should. Confirm the treatment of your specific goods or services with the ATO or your accountant.
If you are below the threshold
If your turnover sits below the registration threshold, you can often choose whether to register voluntarily. Some businesses register early so they can claim GST credits on their own purchases; others stay unregistered to keep pricing and paperwork simpler. There are trade-offs either way, and the right call depends on your margins, your customers and your costs. This is a decision worth talking through with your accountant rather than copying what another business did.
Putting it on the invoice
Once you know whether GST applies, the invoice needs to reflect it clearly. See how to show GST on an invoice, and use our free invoice tools to lay it out cleanly.
This is general information only, not tax or legal advice. GST registration, rates and exemptions depend on your situation and change over time — confirm them with the ATO or your accountant before relying on them.
Key takeaways
- You charge GST only when registered and making a taxable sale.
- The key question is usually whether you must register.
- Some sales are GST-free or input-taxed even when you are registered.
- Voluntary registration below the threshold is a judgement call.
- Confirm your registration and the GST treatment of your sales with the ATO or your accountant.
Frequently asked questions
Do I charge GST if I'm not registered?
Generally no. If you are not registered for GST, you do not add it to your sales. You should still show your ABN on invoices. Confirm your position with the ATO or your accountant.
Does GST apply to every product I sell?
Not always. Some supplies are GST-free or input-taxed. Check the treatment of your specific goods or services rather than assuming a flat add-on.
How do I know if I have to register?
Registration depends on a turnover test and your circumstances, set by the ATO. Because the figure is indexed, confirm whether you need to register with the ATO or your accountant.
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