Do I Add GST to My Invoice?

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You only add GST to your invoice if you are registered for GST. If you are not registered, you must not charge GST at all. So the real question is whether you need to be registered.

In Australia, GST registration becomes mandatory once your business reaches a GST turnover of AUD $75,000 or more in a 12-month period. This $75,000 threshold has applied since GST was introduced and remains in place. For non-profit organisations, the threshold is higher at $150,000. Taxi, rideshare and limousine drivers must register regardless of turnover.

The threshold is tested two ways. Your current turnover is the total for the current month plus the previous 11 months. Your projected turnover is what you reasonably expect over the current month plus the next 11 months. If either reaches $75,000, you must register, and you have 21 days to do so. Registration takes effect from the date you crossed the threshold, so register promptly. If you do not, the ATO can backdate your registration and still pursue the GST you should have collected, even if you never charged it to customers.

If you are below the threshold:
- You can choose not to register, in which case you do not add GST to your invoices.
- You can register voluntarily, which may suit you if you want to claim GST credits on your business purchases or deal mainly with GST-registered customers. Once registered, you must charge GST like any other registered business.

The GST rate is 10% on most goods and services sold or consumed in Australia. To add it, multiply the pre-GST price by 10% (or, working backwards, the GST inside a GST-inclusive total is one-eleventh of that total).

If you ARE registered for GST:
- Label the document a "Tax Invoice".
- Show your ABN (Australian Business Number).
- Show the GST amount separately for each line or as a total. Alternatively, if GST is exactly one-eleventh of the total price, you can simply state "Total price includes GST".
- Include your business identity, the date issued, and a description of what was sold, with quantity and price.
- For tax invoices of $1,000 or more, you must also show the buyer's identity or their ABN.
- You generally must issue a tax invoice for taxable sales over $82.50 (including GST), or whenever a customer asks, within 28 days of the request.

If you are NOT registered for GST:
- Do not add GST or any GST line to the invoice.
- Do not call it a "Tax Invoice". Simply label it "Invoice", since only GST-registered businesses can issue tax invoices.
- You still include your usual details such as your business name, the date, a description of the goods or services, and the amount payable. Quoting an ABN is good practice and helps customers avoid withholding tax from your payment.

Keep your invoices and related records for at least 5 years. The five-year period generally starts from when the record was prepared or obtained, or when the relevant transaction was completed, whichever is later.

InvoiceSonic makes this easy: switch GST on only when you are registered, and the tool auto-calculates the 10% GST, shows it correctly on each invoice, and labels the document as a proper Tax Invoice with the right fields. If you are not registered, leave GST off and InvoiceSonic produces a clean standard invoice instead.

This is general information only and not tax advice. For your specific situation, check the ATO website or speak with a registered tax agent or accountant.

Do I Add GST to My Invoice?

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