Follow these steps to register for GST with Honcho, including choosing your start date, turnover bracket, BAS reporting frequency, and accounting method.
Summary
- GST registration is mandatory once your annual turnover reaches $75,000, but taxi and ride-sourcing drivers (e.g. Uber) must register regardless of income.
- You'll need to nominate a start date, estimate your turnover bracket, choose a BAS reporting frequency, and select a cash or accruals accounting method.
- Annual BAS reporting is only available if your turnover is under $75,000 — and ride-sourcing drivers can't choose annual reporting or accruals accounting.
- Businesses that import goods into Australia may need to account for GST on imports and should understand the Importer GST Deferral Scheme.
Prerequisites
- An active Australian Business Number (ABN) — required before registering for GST.
- Your turnover bracket — know (or estimate) your expected annual turnover; registration is mandatory at $75,000+ and optional below it.
- Your reporting preferences ready — decide your preferred BAS frequency and accounting method before starting (see the explanations below).
- Ride-sourcing drivers (e.g. Uber, taxi): GST registration is mandatory regardless of turnover, the Annual BAS option isn't available to you, and you must use Cash Basis accounting.
Step-by-Step Instructions: Register for GST
- Nominate your GST activation/registration date. This should be in the future, or align with the date your business first met the GST registration requirements. New businesses can nominate their own start date at the time of registration. Example: for a registration date of 15th March 2025, enter 15/03/2025.
- Estimate your annual turnover and select the bracket that matches your business (see Turnover Brackets Explained below).
- Choose your BAS reporting frequency — Monthly, Quarterly, or Annually (see BAS Reporting Frequency Explained below).
- Select your accounting method — Cash Basis or Accruals Basis (see Accounting Methods Explained below).
- Indicate whether your business will import goods into Australia by selecting Yes or No (see Importing Goods & GST below).
Turnover Brackets Explained
Your annual turnover estimate helps determine your GST reporting and registration requirements:
- $0 – $74,999: You may choose not to register for GST but can voluntarily opt in.
- $75,000 – $149,999: GST registration is mandatory.
- $150,000 – $1,999,999: Standard bracket for many medium-sized businesses.
- $2 million – $9,999,999: Larger businesses fall within this category.
- $10 million – $19,999,999: For high-turnover enterprises.
- $20 million and over: GST reporting and compliance become more critical.
Why turnover matters:
- Businesses earning under $75,000 may opt out of GST registration but may miss out on claiming GST credits.
- Businesses earning over $75,000 must register and comply with reporting obligations.
- Taxi and ride-sourcing drivers (e.g. Uber) are required to register for GST regardless of their income threshold.
BAS Reporting Frequency Explained
Select your preferred frequency for submitting your Business Activity Statement (BAS):
- Monthly: Suitable for businesses with regular and high transaction volumes.
- Quarterly: Common for most small to medium enterprises.
- Annually: Limited to small businesses.
Important notes:
- The Annual option is available only if your estimated turnover is under $75,000.
- Taxi/Uber drivers (or anyone engaged in ride-sourcing activities) cannot choose the annual option, regardless of turnover.
Choosing the right option:
- Monthly reporting may help manage cash flow better if you frequently claim input tax credits.
- Quarterly reporting balances administrative effort and compliance.
- Annual reporting minimizes effort but is restricted to smaller businesses.
Accounting Methods Explained
Your accounting method determines when you report and pay GST.
Cash Basis
You report the GST portion of sales and purchases only when the money is received or paid during the reporting period.
Advantages:
- Better cash flow management.
- Ideal for businesses with delayed payments.
Accruals Basis
You record and report sales and purchases when they occur, regardless of payment timing.
Advantages:
- Provides a clearer financial picture.
- Useful for businesses with immediate invoicing.
Important notes:
- Taxi/Uber drivers (or anyone engaged in ride-sourcing activities) must select the Cash Basis.
- Many service-based businesses prefer the Cash Basis.
Importing Goods & GST
Indicate whether your business will import goods into Australia by selecting Yes or No.
Why this information is needed:
- Businesses importing goods may need to account for GST on imports.
- Proper reporting ensures compliance with customs and tax regulations.
Tips for importers:
- Understand the Importer GST Deferral Scheme if applicable.
- Keep detailed records of imported goods and related GST amounts.
Troubleshooting
-
I'm a taxi/rideshare driver — can I choose Annual reporting or Accruals accounting?
- Why this happens: ATO rules require ride-sourcing drivers to register for GST regardless of income and apply specific reporting requirements to that category.
- What to do: Select Cash Basis accounting and choose Monthly or Quarterly BAS reporting — the Annual option isn't available to you regardless of turnover.
-
My turnover is under $75,000 — do I still need to register?
- Why this happens: Below the $75,000 threshold, GST registration is optional for most businesses, but mandatory rules still apply to specific categories like ride-sourcing.
- What to do: You can voluntarily register to claim GST credits, or wait until your turnover approaches the threshold. If you're a taxi or rideshare driver, registration is mandatory regardless of turnover.
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I'm not sure which registration date to enter.
- Why this happens: The correct date depends on whether your business has already crossed the turnover threshold or is just starting out.
- What to do: If you've already crossed $75,000 in turnover, enter the date you crossed it. If you're a new business, nominate your own start date at the time of registration (e.g. 15/03/2025).