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Australia GST guidelines

FACTSHEET
Country codeAU
Tax nameGST
Tax Authority Australian Taxation Office

Information on the invoice​

Sales Under $1000​

Tax invoices for sales under $1,000 that are subject to tax must have enough details to clearly show the following 7 things:

  1. The document is meant to be a tax invoice.
  2. Who the seller is.
  3. The seller's Australian business number (ABN).
  4. The date the invoice was created.
  5. A short description of the items sold, including the amount sold and the price per item (if applicable).
  6. The amount of GST owed (if any) - this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, a statement saying 'Total price includes GST'.
  7. The extent to which each sale on the invoice is subject to tax.
Tax invoice for a sale under $1,000
Tax invoice for a sale under $1,000

Sales of $1,000 or more​

Tax invoices for sales of $1,000 or more also need to show the buyer's identity or ABN.

If your tax invoices meet the requirements for sales of $1,000 or more, you can also use them for sales of lesser amounts.

  1. GST included in each line item
  2. the sale is clearly identified as being fully taxable by the words 'Total price includes GST'
  3. the buyer's identity for sales of $1,000 or more.
Tax invoice for a sale of $1,000 or more
Tax invoice for a sale of $1,000 or more

Frequently Asked Questions​

Do I have to register for GST as soon as I exceed AUD 75,000 in a single month?​

No. The AUD 75,000 threshold (AUD 150,000 for non-profits) is based on annual GST turnover — past 12 months or projected next 12 months. You have 21 days from the date you cross or expect to cross the threshold to apply. If you register late, the ATO can back-date your registration and require GST to be remitted on earlier supplies — without the ability to recoup that GST from customers. [1]

Can I have an ABN without registering for GST?​

Yes. An ABN and GST registration are separate. An ABN is required for most business activities; GST registration is only mandatory once you cross the turnover threshold. Voluntary GST registration is available below the threshold — useful if you have significant input tax credit (ITC) claims, e.g. a startup buying equipment before generating revenue. Once registered, you must charge GST on taxable supplies and lodge BAS returns. [1]

Do foreign businesses selling digital services to Australians need to register for GST?​

Yes. Since 1 July 2017, foreign businesses supplying digital products (streaming, software, apps, e-books) to Australian consumers must register for GST if Australian sales exceed AUD 75,000. Marketplaces (Amazon, Apple App Store, Google Play) collect and remit GST on behalf of underlying suppliers in most cases. Since 1 July 2018, the rule extended to foreign sellers of low-value physical goods (under AUD 1,000) above the same threshold. GST rate: 10%. [1]

What is the difference between GST-free and input-taxed supplies?​

Both attract no GST on sale, but differ for input tax credit (ITC) purposes. GST-free (e.g. basic food, medical services, exports): no GST charged on the sale, but you can still claim ITCs on related purchases. Input-taxed (e.g. financial services, residential rent): no GST charged, and you cannot claim ITCs on related purchases. Getting this wrong is a common ATO audit trigger for mixed-supply businesses. [1]

Do I need to lodge my BAS monthly or quarterly?​

Quarterly (default for most businesses): GST turnover under AUD 20 million. Monthly (mandatory): GST turnover AUD 20 million or more; optional for smaller businesses. Annually (by instalments): turnover under AUD 75,000. Late lodgement and payment attract a Failure to Lodge (FTL) penalty and General Interest Charge (GIC). The ATO sets your reporting frequency on registration. [1]

What must a valid Australian tax invoice contain?​

To support an ITC claim, a valid tax invoice must include: (1) the words "tax invoice" prominently; (2) supplier's identity and ABN; (3) date of issue; (4) description of the supply; (5) GST amount (or "Total price includes GST"); (6) whether each supply is taxable. For supplies AUD 1,000+, also include the recipient's identity or ABN. Simplified invoices (without recipient identity) are only valid under AUD 1,000. [1]

For more details on Australian tax identifiers including ABN, see our Australia Tax ID Guide. To verify an Australian ABN, see our ABN verification guide.