GST for Online Businesses in Australia (What You Actually Need to Know)

If you run an online store in Australia, GST confuses almost everyone. Accountants make it sound complicated. The ATO website is dense. Here's the plain-English version.

The One Rule That Actually Matters

You only need to register for GST if your annual turnover is $75,000 AUD or more.

That's it. That's the rule. Under $75K revenue in a 12-month period, GST is optional. Over it, mandatory.

What Counts Toward the $75K?

Your gross revenue — every dollar customers pay you. Not your profit. Not after expenses. The total you invoice.

Example: If you sold $80,000 worth of products in the last 12 months but only profited $25,000, you still need to register for GST. The $75K is on revenue, not profit.

When Do I Have to Register?

You must register within 21 days of either:

1. Hitting $75K in the last 12 months, OR

2. Expecting to hit $75K in the next 12 months based on reasonable forecasts

Reasonable forecast: If you just had a viral week doing $30K/mo, you probably need to register immediately. If you're slowly growing and project $60K/year, you don't.

What Changes When You Register

1. You Charge 10% GST on All Sales

A $50 product becomes $55 (including $5 GST). You keep the $50 (minus processing fees), and send the $5 to the ATO.

Important: Your prices must be displayed inclusive of GST in Australia. You can't list "$50 + GST" on your consumer-facing site. Show the final price.

2. You Can Claim GST Credits

The GST you paid on business expenses (suppliers, software subscriptions, equipment) becomes a credit. You subtract it from the GST you collected.

Example:

GST collected from customers: $5,000

GST paid on business expenses: $1,200

You send to ATO: $3,800

3. You Must Lodge BAS

Business Activity Statement — the form where you report GST.

Quarterly BAS (most businesses): Due 28 days after end of quarter

Monthly BAS (if turnover > $20M): Monthly

Annual BAS (if turnover < $2M and you elected): Once per year

For most Australian online stores, quarterly is the default.

Should I Register Voluntarily (Under $75K)?

Register voluntarily if:

Your customers are businesses (they want GST invoices for their own credits)

You have significant GST-inclusive expenses (you can claim credits)

You expect to cross $75K soon anyway

Don't register voluntarily if:

You sell to individual consumers

Your expenses are mostly GST-free (international SaaS, for example)

You want simpler bookkeeping

For most solo Aussie e-commerce stores selling to consumers, don't register until you have to. It's more paperwork and doesn't help you.

What About International Sales?

Selling overseas changes things:

Goods Exported from Australia

GST-free — you don't charge it, customers don't pay it. But you can still claim GST credits on your business expenses.

Digital Products/Services Sold Overseas

Generally GST-free if the customer is outside Australia.

Importing Goods You Sell

You pay GST at the border on imports over $1,000. Under $1,000, the sender usually charges GST directly (LVT rules).

Common Stripe/Payment Processor GST Questions

Q: Is Stripe's fee subject to GST? A: No. Stripe is a foreign service. You don't pay GST on their fees, you can't claim GST credits.

Q: Do I charge GST on the full price or after fees? A: On the full price customers pay you. Processing fees are your business expense, unrelated to GST.

Q: What about PayPal? A: Same as Stripe — foreign service, no GST.

Q: Shopify fees? A: Shopify has an Australian ABN. If you're GST-registered, Shopify charges you GST on their monthly fee, which you can claim back.

A Realistic Timeline

Stage	GST Status	What to Do
Starting out ($0-20K/year)	Not registered	Focus on revenue. Don't register.
Growing ($20-60K/year)	Not registered	Keep tracking revenue. Set up accounting software.
Near threshold ($60-75K)	Not registered yet	Register preemptively if you expect crossover in 3-6 months.
Over threshold ($75K+)	Registered	Register within 21 days. Start charging GST.

The Practical Tax Setup

Once you're running a real business, get these in place:

1. Separate Bank Account

Keep business and personal finances separate. Most Australian banks offer free business accounts for sole traders.

2. Accounting Software

Even if you're pre-GST:

Wave (free) — good for small businesses

Xero ($30-70/mo) — standard for Australian businesses

QuickBooks Online ($25-60/mo) — alternative to Xero

3. An Accountant (Eventually)

When you hit $75K+ revenue, hire an accountant. Cost: $500-2,000/year for a simple online business. They pay for themselves in tax deductions you'd miss.

Don't Panic About GST

Most Australian entrepreneurs stress about GST way too early. The reality:

First year: Probably under $75K. No GST needed. Focus on sales.

Second year: Track revenue monthly. Register when you hit $75K.

Third year+: GST becomes routine. Quarterly BAS, claim credits, move on.

If you're just starting, forget GST for now. Make sales first. GST is a problem you want to have.

What the ATO Actually Cares About

The ATO isn't looking to punish small online businesses. What they care about:

1. You report revenue honestly (even if you're under $75K)

2. You lodge BAS on time if registered (late fees add up)

3. You keep records (save invoices, receipts, bank statements)

Pay your tax, keep your receipts, report honestly. The ATO leaves you alone.

TL;DR

Under $75K revenue: No GST. Don't worry about it.

Over $75K: Register within 21 days, charge 10%, lodge BAS quarterly.

Exports: Generally GST-free.

Stripe/PayPal fees: Not GST-applicable (foreign services).

Use Xero or Wave to track revenue from day one.

When in doubt, call the ATO small business line (13 28 66). They're surprisingly helpful.

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