Do I Charge GST Under $75,000? The Threshold Explained

Usually, no: if your Australian GST turnover is under A$75,000 and you are not registered for GST, you generally should not charge GST on your invoice. For non-profit organisations, the registration threshold is A$150,000. A special exception applies to taxi and ride-sourcing services, which must register regardless of turnover, according to the ATO guidance on when GST registration is needed.

At invoice stage, the practical question is simple: am I registered, or required to be registered, right now? If not, you usually issue an ordinary invoice without GST, rather than a tax invoice. A no-GST invoice template can help you format that correctly.

What the A$75,000 threshold actually means

The threshold is about GST turnover, not profit. That means you look at turnover from the business supplies that count toward GST turnover, not what is left after software, fuel, subcontractors, or equipment. The ATO refers to current and projected GST turnover, so this is not just a financial-year-end calculation. You need to consider turnover over the relevant rolling 12-month view, not just profit or a single year-end total: ATO guidance on when GST registration is needed.

This is where many sole traders go wrong. If you billed A$82,000 but kept only A$22,000 after expenses, the A$22,000 profit figure does not answer the GST registration question.

Two points follow from that:

So the threshold helps answer whether registration is needed, but it does not replace checking your actual status before you send an invoice.

When you should not add GST

If you are not registered for GST, you generally do not charge GST. In that case, use an ordinary invoice and do not label it a tax invoice. The Australian government invoicing guidance covers the standard details an invoice should include.

A practical no-GST invoice usually shows:

A common confusion is ABN versus GST registration. They are not the same thing. You can have an ABN and still be unregistered for GST. So if a client asks for your ABN on the invoice, that does not mean you should add GST.

If you want a starting point, use a GST-free invoice format designed for invoices where GST should not appear.

Registration status and the supply itself are different questions

Many people treat GST as a single yes-or-no switch for the whole business. In practice, there are two separate questions.

First: are you registered, or required to register? If you are unregistered, you generally do not charge GST.

Second: what kind of supply is this? A registered supplier making an ordinary taxable supply may need to show GST, but GST-free treatment is its own category. It is not simply another way of saying the supplier is unregistered. The ATO tax-invoice guidance is useful here.

That distinction matters because the following statements are not interchangeable:

• I am not registered for GST
• This supply is GST-free

If you are under A$75,000, that may explain why you are not registered. It does not automatically classify the sale itself as GST-free. If you are unsure about the treatment of a particular sale, check the actual facts with your accountant or tax adviser before issuing the invoice.

Worked example: what appears on the invoice

Assume the following fictional Australian sole trader, with all figures in AUD.

Business: Blue Kite Copy Studio
Status assumption: Not registered for GST today
Why: Expected GST turnover for the coming 12 months is below A$75,000

Here is a simple running turnover check:

On those assumptions, the owner remains below the standard threshold. So the December invoice for completed work should look like this:

That invoice should not claim GST. A short note such as “No GST has been charged” can make the position clear.

If only one fact changes — for example, the owner registers voluntarily or projected turnover changes enough that registration is required — the invoice treatment may change too. That is why the GST decision should be checked before sending, not after the client has paid.

Two edge cases that catch people out

Taxi and ride-sourcing services

This is the major exception. The ATO says providers of taxi and ride-sourcing services must register for GST regardless of turnover. So a driver with annual fares well below A$75,000 cannot assume the standard threshold means no GST: ATO guidance on when GST registration is needed.

You are close to the threshold mid-year

A business may be sitting below A$75,000 on completed invoices but have accepted work that is likely to push projected turnover higher. Because the ATO refers to both current and projected turnover, this can become a problem before the financial year ends.

If you are near the threshold, review your pipeline before issuing more invoices. If you have already sent an invoice and later discover GST was shown incorrectly, see How to Write an Australian Invoice Without GST and Correct an Invoice That Charged GST by Mistake.

What to put on the document before charging GST

For an unregistered business, the goal is a clear ordinary invoice that does not imply GST registration. For a registered supplier making a taxable supply, official tax-invoice rules are more specific. The ATO says a tax invoice should clearly identify the seller and ABN, show the date, items, quantity and price, state the GST payable, and make clear that it is intended as a tax invoice. For sales of at least A$1,000, buyer identity or ABN is also required: ATO tax-invoice guidance.

That means the safest approach is:

If you need a simple setup, this no-GST invoice template is built for the unregistered case. InvoiceSonic also lets you create invoices with business and client details, line items, tax and currency settings, payment instructions, PDF export, saved client details, status tracking, and reminders subject to settings and plan limits. For plan details, see pricing.

Simple wording you can use

You do not need heavy tax language. Short, accurate wording is usually enough.

This is an invoice only. No GST has been charged.

I am not currently registered for GST, so this invoice does not include GST.

Please note this document is issued as an invoice, not a tax invoice.

Only use wording that matches your real status. A client asking you to “show GST separately” does not change whether you are registered.

The practical bottom line

If your GST turnover is under A$75,000 and you are not registered for GST, you will usually not charge GST. For nonprofits, the threshold is A$150,000. For taxi and ride-sourcing services, the ordinary threshold does not apply in the same way because registration is required regardless of turnover.

Before sending an invoice, check four things:

1. your current registration status
2. whether you are looking at turnover rather than profit
3. whether projected turnover changes the answer
4. whether the sale itself should be treated differently

If the result is that you are unregistered, keep the document as an ordinary invoice and leave GST off it. That one check before you send can save a correction later.