The GST registration threshold is based on GST turnover, not net profit. A business can have low profit and still need to register. Some sales are excluded from the turnover calculation, so it should be checked against the ATO rules.
What this means in practice
A common mistake is to compare the registration threshold with the amount left after expenses. The business might earn substantial sales and spend most of the money on materials or staff; that does not necessarily remove the registration requirement. Review current and projected turnover using the relevant definitions, especially where the business sells assets or has unusual transactions.
Your next steps
- Separate revenue from profit
- Review exclusions from GST turnover
- Consider expected sales
- Confirm registration timing
Get help with the next step
If this relates to your business, tell us about your current records and the task you need help with. We can explain our service scope and the information needed before work starts.
Official guidance: ATO: Registering for GST ↗
General information prepared on 26 September 2026. Rules and individual circumstances can change. Confirm the treatment that applies to you before acting.
Prepared by the Affordable Bookkeeper content team. Our services and practitioner arrangements.
