GST at 10% and BAS lodgement
How the 10% Goods and Services Tax works, when you must register, and how the Business Activity Statement (BAS) fits with the invoices you issue.
Australia has a Goods and Services Tax (GST) of 10% on most goods and services. Some sales are GST-free, such as many basic foods, some health and education services and exports. Others are input-taxed, such as financial supplies and residential rent. You must register for GST when your GST turnover is $75,000 or more, or $150,000 or more for a non-profit organisation. Taxi and ride-sourcing drivers must register at any turnover. Once registered you report GST on your Business Activity Statement (BAS). Most small businesses report quarterly, and businesses with GST turnover of $20 million or more report monthly. 4invoices helps with one part of this: you create invoices with a GST rate on each line, including 10% and 0%, and download a PDF. It does not choose the rate for you, prepare a BAS or lodge anything with the ATO.
- GST is 10% on most taxable sales.
- Registration threshold is $75,000 turnover ($150,000 for non-profits).
- BAS reporting is usually quarterly for small businesses.
- 4invoices sets the rate you choose on each line. It does not prepare or lodge a BAS.
How it works
Work out your GST turnover. Add up your sales over the current month and the previous 11 months, and estimate the next 12 months. If you reach the threshold, register within 21 days.
Register for GST through the Australian Business Register or ATO online services. Ask your tax agent if you are not sure.
Decide the GST treatment of each sale: taxable at 10%, GST-free or input-taxed. If you are unsure about a product or service, check the ATO guidance or ask your agent.
Issue tax invoices. In 4invoices, choose the rate for each line, so a taxable line uses 10% and a GST-free line uses 0%. The invoice shows the totals and you download the PDF.
Report on the BAS. Use accounting software, ATO online services or your tax agent to prepare and lodge the BAS by the due date.
Legal references
- A New Tax System (Goods and Services Tax) Act 1999 - the GST law covering the rate, registration, taxable and GST-free supplies.
- Australian Taxation Office - GST registration, BAS and reporting period guidance.
Frequently asked questions
What is the GST registration threshold in Australia?
The threshold is $75,000 in GST turnover for most businesses and $150,000 for non-profit organisations. Taxi and ride-sourcing drivers must register at any turnover. You can register voluntarily below the threshold.
How often do I lodge a BAS?
Most small businesses lodge quarterly. Businesses with GST turnover of $20 million or more must lodge monthly. The ATO sets your reporting period when you register and you can ask to change it in some cases.
What is the difference between GST-free and input-taxed?
Both have no GST on the invoice. With GST-free sales you can still claim credits for the GST in your costs. With input-taxed sales you cannot.
Does 4invoices prepare or lodge my BAS?
No. 4invoices does not prepare, calculate or lodge a BAS and has no connection to the ATO. It lets you set a GST rate on each invoice line and download a PDF. Use accounting software or a tax agent for the BAS.