How does GST work for an individual that is billing the customer privately rather than via a company or business ?
Do they have to pay GST just like a regular business and if so what is the threshold ?
GST for Individuals, with No Company / Business
LPerthJedi on 06/10/2025 - 19:40
Comments
Yes, a sole trader
I thought this was the right place for the question as it was finance related.
My apologies if it is not suitable for this forum
Yes, a sole trader
Nice how long have you been in the shoe business?
This is the correct forum. Some silly people here browse the new forum posts and forget that the site has dedicated areas for different topics…. like finance.
You do not have to charge gst if you are not registered for gst
You can't charge GST if you're not registered nor can you provide a "tax invoice". Are you registered OP?
You cant Not charge gst if you are registered (double negative on purpose).
No rule saying you cant charge gst even if you are not registered but it would be very foolish because you CANNOT claim gst input credits if you are not registered.
If you are voluntarily registered for GST and still earn under whatever the amount is that requires it, you can choose to stop being registered for GST.
@AustriaBargain: Though of course that triggers a deemed disposal of assets which means you might be required to remit GST on the "sale" of assets you haven't yet sold
There are rules saying you can't charge GST if you're not registered. You can be fined, forced to refund the GST and be charged interest.
You should still issue invoices though. Put GST amount as 0.00 not applicable or something, to avoid ambiguity. Otherwise you're going to have the same conversations again and again being asked if you are registered for GST or of the invoice includes GST.
You should issue an invoice but not a tax invoice. There's a difference.
Have a look at ozbargain’s sister website, ozaccountant’s
free labour
When your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more
ATO guidance. It is pretty clear under "when you need to register"
https://www.ato.gov.au/businesses-and-organisations/gst-exci…
Do they have to pay GST just like a regular business and if so what is the threshold ?
Doesn't matter whether you are a Sole Trader or a Pty Ltd, it all applies.
As a sole trader you only need to register for GST IF you forecast or your business is turning on/over 75k in consecutive 12 month period, NOT financial year period.
If your business, even as a sole trader is under 75k, you don't need to charge or register for GST.
For example:
1 - from Jan 25 to Dec 25, if you generate 75k or more revenue, yes you will need to register for GST
2 - same period as 1. You don't generate 75k or more revenue, you don't register or pay GST
3 - same period as 1. You don't generate 75k or more revue BUT in the 10th month, you made alot of money that puts you over the 75k threshold, yes you need to pay GST and register for GST and it will backdate.3 - same period as 1. You don't generate 75k or more revue BUT in the 10th month, you made alot of money that puts you over the 75k threshold, yes you need to pay GST and register for GST and it will backdate.
a) what date does it backdate to?
b) what happens to all the other 'invoices' in the period 8 months prior that GST was not charged? Is it now payable out of your pocket?I should have put a few key notes in point 3.
To answer your questions:
A - Let's say you hit or realise you're going to hit 75k or over on your 10th month, then you register for GST within 21 days of realising or when you hit 75k, depends on the ATO's process, you may not need to pay GST for the last 10 months, depending how the ATO sees your cash flow.
A2 - In the last 10 months, if your revenue is consistent as in 7.5k per month for 9 months, this is a good indicator to the ATO that you should have registered for GST early and you most likey need to pay backdated GST (if the ATO contacts you and sees your tax lodgements or maybe ask for cash flow statements). But if your revenue is 1k, 2k, 10k, 1k, 5k, 3k, 8k then all of a sudden on your 10th month is amazing and you got a crazy deal at 45k which makes you at 75k, then your register for GST within 21 days, then you may not need to pay GST.
A3 - Backdating isn't an automatic process to my understanding, the ATO needs to contact you or they send you a letter to call them about your registration for GST if they think you need to be in the backpay list.B - yes it comes out of your own pocket
B2 - If the ATO contacts you about backdating, you can explain that you registered as soon as you became aware — they may then start from that later date to avoid penalising you.GST registration and how one forecasts or reaches the 75k threshold can and will be finnicky, always alot of ifs and buts…….
If you're not registered for GST issue an 'invoice' and add a note 'GST not included as this business is not GST registered', add your ABN. As others have said do not charge GST, you need to be registered to do this.
You seem to have mistaken a bargains forum for Google.
Are you a sole trader?