GST and BAS are two of the most-Googled headaches for Australian tradies — and most of the confusion comes down to a few simple rules. Here’s the plain-English version.
Do you need to register for GST?
You must register for GST once your turnover reaches $75,000 over a rolling 12 months (current or projected), and you have 21 days to do it once you cross that line. Below $75,000 you can register voluntarily, but you don’t have to. GST is 10%.
What GST means day to day
Once you’re registered, you add 10% GST to your prices and collect it on behalf of the ATO — it was never really your money. The flip side: you can claim back the GST you pay on business purchases (tools, materials, fuel). What you send the ATO is the GST you collected minus the GST credits you’re owed.
What is a BAS?
A Business Activity Statement (BAS) is the form you use to report and pay it. It covers GST, and often PAYG instalments and PAYG withholding if you have staff. Most small trade businesses lodge quarterly, due on the 28th — 28 October, 28 February, 28 April and 28 July. Lodging online or through a registered agent can give you a little extra time.
GST and your invoices
If you’re registered for GST, you issue tax invoices that show the GST. If you’re not registered, you must not charge GST or call your document a “tax invoice” — just an “invoice.” (See our guide to what to put on a tradie invoice for the full checklist.)
Always quote your ABN
This catches people out: if you don’t put an ABN on an invoice to a business, they’re generally required to withhold 47% of the payment and send it to the ATO. Put your ABN on every invoice — registered for GST or not.
How to stay on top of it
- Set aside the GST you collect in a separate account so BAS time isn’t a shock.
- Use software that tracks GST on every quote, invoice and expense automatically.
- Reconcile regularly rather than scrambling at quarter-end.
- Consider a registered BAS agent or accountant — they pay for themselves.