Not GST Registered in Australia? What It Means and When to Register

Sorting out GST can feel like one of those “I’ll get to it later” tasks. If you’re starting out or keeping things lean, it’s common to operate not GST registered in Australia-at least for a while.

But there are clear rules about when you must register, and practical consequences if you don’t. Understanding them early will help you price correctly, invoice the right way, avoid misleading customers, and know exactly when to switch to GST.

In this guide, we’ll walk through what “not GST registered” means for your business, the triggers for registration, how to handle invoicing and pricing, pros and cons to weigh up, and a simple plan to register when the time is right.

What Does “Not GST Registered” Mean For Your Small Business?

In Australia, Goods and Services Tax (GST) is a 10% tax on most goods and services. Registering for GST means you charge GST (where applicable), lodge Business Activity Statements (BAS), and can claim input tax credits on eligible business purchases.

If you are not GST registered:

• You must not charge GST on your sales.
• You cannot issue “tax invoices.” You issue standard invoices instead (more on invoice wording below).
• You cannot claim input tax credits for GST you pay on business purchases.
• You generally don’t lodge a BAS (unless you’re registered for other reasons, like PAYG withholding if you have employees).

Being unregistered doesn’t mean you’re not a business. You can still trade with an Australian Business Number (ABN), sign contracts, hire staff, and grow. Just remember GST and ABN are different systems-having an ABN doesn’t automatically mean you’re registered for GST.

If you’re wondering about operating without an ABN altogether, it’s worth understanding the risks and how running a business without an ABN can lead to clients withholding tax from payments. For most businesses, getting an ABN is a basic step so you can invoice properly from day one.

Do You Need To Register For GST In Australia?

You must register for GST if any of the following apply:

• Your GST turnover is $75,000 or more (non-profits: $150,000 or more). GST turnover is your gross business income excluding GST, measured on a rolling 12-month basis.
• You provide taxi travel or ride-sourcing (e.g. Uber) for passengers-this requires GST registration regardless of turnover.
• You want to claim GST credits for your purchases (voluntary registration is allowed below the threshold).

Watch your turnover carefully. It’s a rolling measure, not just a financial year snapshot. If you’re about to cross $75,000 in the next 30 days (e.g. you’ve signed a big contract), you generally need to register.

Some industries have unique GST nuances (for example, ride-sourcing requires GST registration from day one). If you’re in a gig or platform-based industry, you might find our overview of GST requirements for Uber drivers helpful for understanding why that specific rule exists.

Not sure whether your activity is a business or a hobby? It’s a good idea to clarify what defines a business activity so you know which tax and legal obligations apply.

Invoicing And Pricing When You’re Not GST Registered

When you’re not registered for GST, the way you present prices and invoices matters. It’s about being accurate and avoiding misleading statements under the Australian Consumer Law (ACL).

Pricing: Be Clear And Accurate

• Don’t advertise “plus GST” or include a GST component in prices if you’re not registered.
• You can state a simple price (e.g. $110) without any GST label if you’re unregistered.
• If customers ask, it’s fine to clarify that no GST is included because you’re not registered.

Your pricing statements must not mislead or confuse customers. As part of your broader compliance, keep in mind the ACL rules around advertised price laws and fair representations.

Invoices: Don’t Use “Tax Invoice”

• Issue a standard “Invoice” (not “Tax Invoice”). Only GST-registered businesses can issue tax invoices.
• Include your ABN, business name, invoice date, description of goods/services, quantity, and total amount payable.
• Don’t show a GST amount or “GST included” note if you’re not registered. Some businesses add a simple line: “No GST has been charged.”

If you regularly invoice clients, it’s smart to set clear payment timeframes and methods in your quotes or terms. Many businesses formalise this through invoice payment terms or a broader set of Terms of Trade to avoid disputes and late payments.

Recipient Created Tax Invoices (RCTIs)

Some clients (particularly larger organisations or marketplaces) prefer to issue “Recipient Created Tax Invoices,” where they generate the invoice on your behalf. In most cases, RCTIs are only valid if both parties are GST registered. If you’re not registered, you generally can’t participate in an RCTI arrangement. Our guide on Recipient Created Tax Invoices explains the usual requirements.

Pros And Cons Of Staying Unregistered

Potential Advantages

• Simpler admin: no BAS lodgements or GST reconciliations.
• Pricing flexibility: if your customer base is mostly consumers (who can’t claim GST credits), not charging GST may help you stay price-competitive.
• Cash flow clarity: you keep the full invoice amount without tracking the GST component for the ATO.

Potential Disadvantages

• No GST credits: you can’t claim back GST on business purchases, which adds up if you have significant input costs.
• Supplier perception: some corporates prefer GST-registered suppliers, and RCTIs are usually off the table while unregistered.
• Admin switch later: once you cross the threshold, you’ll need to update pricing, systems, and documentation to add GST-doing this midstream takes planning.

There’s no one-size-fits-all answer. If you have high input costs or sell mostly to GST-registered businesses, voluntary registration can make sense even below the threshold. If you sell mostly to consumers with low input costs, staying unregistered early on can be a practical choice-just keep a close eye on turnover.

Special Scenarios: Marketplaces, Imports And Digital Sales

GST rules can look different in specific situations. Here are common scenarios small businesses encounter.

Online Marketplaces And Platforms

Marketplaces sometimes handle GST on certain supplies or collect their own fees with GST added. Read their terms carefully and confirm how they expect you to invoice them (and your customers). If the platform issues RCTIs, you’ll typically need to be registered for GST to participate.

Importing Goods

If you import stock, you might face GST on the value of the import at the border. How and when GST applies depends on factors like customs value, freight and insurance. Our overview of GST on importation explains the basics so you can budget correctly and decide whether registering for GST would let you claim credits for those amounts.

Digital Products And Services

If you sell digital products or services to Australian customers, the normal GST principles apply. If you’re not registered, you don’t charge GST (and can’t claim credits) until you register. If you’re selling cross-border, the rules can become complex-especially where electronic distribution platforms are involved. This is a good moment to get tailored advice so your pricing and invoicing are set up properly from day one.

When And How To Register (Without Disrupting Sales)

It’s best to plan your switch to GST registration a little before you hit the $75,000 threshold so you can transition smoothly.

1) Monitor Your Turnover

Track your rolling 12-month GST turnover (expected and actual). If you expect to hit the threshold in the next 30 days, you generally need to register.

2) Decide On Your Business Structure

You can register for GST as a sole trader, partnership, trust, or company. If you’re considering incorporating for limited liability and growth, it may be efficient to sort out your company set up before registering for GST, so you don’t have to redo registrations later under a different entity.

3) Register For GST

You can register through the ATO (often via the Business Portal or through your tax agent). Once registered, you’ll need to start issuing tax invoices for taxable supplies, add 10% GST to prices where applicable, and lodge BAS according to your reporting cycle.

4) Update Your Invoices, Website And Terms

Switch your documents from “Invoice” to “Tax Invoice” for taxable supplies and include the GST amount and total. Update your website pricing and checkout flows so GST is clearly displayed. If you trade online, it may be the right time to refresh your Website Terms and Conditions and ensure your Privacy Policy is up to date, given you’ll be capturing more customer and payment data as you scale.

5) Communicate The Change

Let your regular customers know you’re now registered for GST and when it takes effect. Share your updated payment terms and explain any price or invoicing changes in plain language. This reduces confusion and keeps trust high.

Legal And Practical Tips While You’re Not GST Registered

Even without GST in the mix, it pays to get your house in order. A few simple steps can save headaches later.

• Use an ABN and correct invoice formatting so customers can pay you confidently.
• Set clear payment terms in your proposals, quotes or Terms of Trade to drive prompt payment and reduce disputes.
• If you sell online, have clear Website Terms and Conditions and a compliant Privacy Policy so customers know how prices, refunds and data are handled.
• If you’re starting with co-founders, consider a Shareholders Agreement early so ownership and decision-making are clear before you grow.

Finally, remember that being unregistered for GST is often a phase, not a permanent identity. Build your systems (bookkeeping, invoicing, website) with a future flip to GST in mind, so the change is a straightforward toggle rather than a full rebuild.

Key Takeaways

• Not GST registered means you cannot charge GST, issue tax invoices, or claim GST credits-keep your invoicing and pricing accurate to avoid misleading customers.
• You must register once your GST turnover hits $75,000 (or you expect to in the next 30 days); ride-sourcing requires registration regardless of turnover.
• Staying unregistered can simplify admin and help with consumer pricing, but you miss input tax credits and may be excluded from RCTI arrangements.
• Invoicing basics still matter: include your ABN, avoid “tax invoice,” and consider clear payment terms or Terms of Trade to protect cash flow.
• Plan your transition: monitor turnover, decide on structure, register at the right time, and update your documents, pricing and website to reflect GST.
• Set yourself up for growth with strong foundations-clear contracts, compliant online terms, and accurate pricing and advertising under the ACL.

If you’d like a consultation on GST readiness, pricing statements, or the right documents for your small business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.