GST Registration in Australia: When Do Nepali ABN Holders Need to Register? 2026 Guide

Having an ABN does not automatically mean you need GST registration

An Australian Business Number and GST registration are separate. A sole trader can have an ABN while remaining below the GST registration threshold and therefore not be required to register for GST, unless a special compulsory-registration rule applies.

This is especially important for Nepali workers who have a normal PAYG job and also earn side income through an ABN.

When is GST registration compulsory?

You generally need to register when your business or enterprise has GST turnover of $75,000 or more. Compulsory registration also applies to certain taxi, limousine and ridesourcing passenger activities regardless of turnover. Non-profit organisations have a separate $150,000 threshold.

What does GST turnover actually mean?

GST turnover is not the same as business profit. Broadly, it is based on gross business income under the GST turnover rules. Certain amounts are excluded, including GST included in sales, input-taxed sales and some sales not connected with the enterprise or Australia.

Current GST turnover vs projected GST turnover

The test is not simply “Did I earn $75,000 between 1 July and 30 June?” The ATO requires businesses to consider both current and projected GST turnover.

Even where current turnover is at or above the threshold, registration may not be required if projected GST turnover is below it. Conversely, projected turnover reaching $75,000 can trigger registration before you have already received $75,000.

Do salary and wages count toward the $75,000 threshold?

Normal salary and wages received as an employee are not business income from your sole-trader enterprise and are not simply added to your ABN business turnover when testing your sole-trader GST turnover.

What if you have more than one business activity?

For a sole trader, GST turnover generally looks at relevant turnover from the businesses or enterprises carried on by that entity. Do not assume that using different trading names or activities automatically separates them for the GST registration test.

What happens when you expect to cross $75,000?

A new business can be required to register where it expects GST turnover to reach the threshold. Existing businesses should monitor turnover throughout the year rather than waiting until 30 June. Once you become required to register, you generally have 21 days to do so.

What if you should have registered but didn't?

If you are required to register and fail to do so, you may have to pay GST on taxable sales from the date you should have been registered, even if you did not include GST in the amount charged to customers. Penalties or interest can also arise depending on the circumstances.

Special rule for Uber, DiDi and rideshare drivers

Taxi and ridesourcing passenger services are a major exception to the ordinary $75,000 threshold. If you provide taxi, limousine or ridesourcing passenger travel, GST registration is required regardless of turnover.

What about food delivery drivers?

Do not automatically apply the passenger rideshare rule to every platform worker. Delivering food or goods is not the same activity as providing taxi or ridesourcing passenger travel. A delivery-only worker should consider the normal GST registration rules and their GST turnover. If the same person also provides passenger ridesourcing, the special ridesourcing rule becomes relevant.

Can you voluntarily register below $75,000?

Yes. If you carry on an enterprise and remain below the compulsory threshold, you may generally choose to register voluntarily. Voluntary registration creates obligations: you generally need to remain registered for at least 12 months, account for GST on taxable sales, keep appropriate records and lodge the required activity statements.

Should every small ABN holder voluntarily register?

Not necessarily. Registration can allow eligible GST credits on business purchases, but it also brings GST accounting, invoicing, record-keeping and BAS obligations. Whether voluntary registration makes sense depends on the nature of your business, customers, expenses and cash flow.

What happens after you register?

• account for GST on taxable sales
• issue valid tax invoices where required
• keep GST records and valid tax invoices for eligible purchases
• claim eligible GST credits
• lodge business activity statements at the applicable frequency
• pay net GST amounts to the ATO where applicable.

Does GST always mean adding 10% to everything?

GST is generally 10% on most taxable goods and services sold in Australia, but not every sale is taxable. Some supplies can be GST-free or input taxed, and special rules can apply. GST registration therefore does not mean every dollar received automatically attracts GST.

What are GST credits?

A GST-registered business can generally claim credits for GST included in eligible business purchases where the requirements are satisfied. The purchase must relate to the business rather than private use, and appropriate tax-invoice and record requirements apply.

What is a BAS?

A Business Activity Statement is used to report various tax obligations. For a GST-registered business, it can include GST on taxable sales and eligible GST credits on business purchases. Reporting may be monthly, quarterly or, in eligible circumstances, annually.

ABN vs GST registration vs income tax

Common situations for Nepali ABN holders

Example: growing ABN side business

Bikash initially expects his business turnover to remain around $45,000. Several months later he wins new contracts and his projected GST turnover for the relevant 12-month period is likely to reach $75,000. He should not wait until the next 30 June; the GST registration rules require turnover to be monitored on a current and projected basis.

Example: employee with a side business

Sabina earns $70,000 as an employee and operates a separate design business through her ABN with $25,000 of relevant business turnover. Her employee salary does not simply turn the business into $95,000 of GST turnover.

Example: rideshare side hustle

Amit has a full-time PAYG job and starts driving passengers through a rideshare platform on weekends. He expects only $12,000 of rideshare revenue. Being below $75,000 does not remove the special GST registration requirement for ridesourcing passenger services.

Can you charge GST before registering?

A business that is not registered or required to be registered should not simply label part of its price as GST. If you become required to register, however, GST obligations can apply from the effective date you were required to be registered. If you are approaching the threshold, plan registration and invoicing carefully.

Can GST registration be backdated?

GST registration can be backdated in appropriate circumstances. Current ATO administrative guidance generally limits backdating to four years. Backdating can create obligations to report taxable sales from the earlier effective date, while eligible GST credits may also be available where the requirements and documentation are satisfied.

Records you should keep

• sales invoices and business-income records
• monthly turnover records
• contracts or forecasts relevant to projected turnover
• valid tax invoices for eligible business purchases
• records separating business and private expenses
• BAS and GST working papers
• rideshare/platform statements where relevant
• your GST registration effective date.

Common GST mistakes to avoid

• assuming an ABN automatically means GST registration
• using profit instead of GST turnover
• adding normal employee salary to sole-trader turnover
• waiting until financial year-end to check the threshold
• ignoring projected GST turnover
• assuming the $75,000 threshold applies to rideshare passenger services
• charging GST incorrectly
• registering voluntarily without understanding BAS obligations
• claiming GST credits for private purchases
• failing to keep valid tax invoices and records.

GST registration checklist

• Confirm whether you are carrying on an enterprise.
• Check whether you are already GST registered.
• Calculate current GST turnover correctly.
• Estimate projected GST turnover.
• Keep employee salary separate from business turnover for this test.
• Check whether you provide taxi, limousine or ridesourcing passenger services.
• If registration becomes compulsory, act within the required timeframe.
• Review how GST affects prices and invoices.
• Set up records for GST collected and eligible GST credits.
• Prepare for BAS reporting.

General information only: This article provides general Australian tax and GST information and is not personal tax, financial or legal advice. GST registration and the treatment of particular sales depend on your enterprise and circumstances. Check current ATO guidance or obtain advice from a registered tax professional before acting.