GST for tradies: do you need to charge it, and how it works

GST trips up a lot of tradies starting out. Do you charge it? When do you have to register? What goes on the invoice? Here's the plain-English version.

This is general information, not tax or accounting advice. For your situation, check the ATO or talk to your accountant.

What is GST?

GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. If you're registered for GST, you add 10% to your prices, collect it from your customers, and pass it on to the ATO — usually through a quarterly Business Activity Statement (BAS).

Do you have to register for GST?

You must register for GST if your business earns $75,000 or more in a 12-month period (turnover, not profit). Below that, registration is optional.

Many tradies register even under the threshold, because:

• You can claim GST credits back on the tools, materials and fuel you buy.
• It looks more established to larger clients and builders.
• You won't get caught out having to backdate registration if you cross $75k mid-year.

Others stay unregistered while small to keep prices simpler for cash-job domestic customers. It's a genuine trade-off — worth a quick chat with your accountant.

How to charge GST on an invoice

If you're registered, you add 10% on top of your price. So a $1,000 job becomes:

• Subtotal: $1,000
• GST (10%): $100
• Total: $1,100

The customer pays $1,100; the $100 is GST you'll remit to the ATO. If you're not registered, you don't add GST and you must not show a GST amount on your invoices.

Tax invoice vs regular invoice

If you're registered for GST and the sale is over $82.50 (including GST), your customer can ask for a tax invoice — and if they're a business, they need one to claim their own GST credit. A tax invoice has stricter requirements than a plain invoice (your ABN, the words "Tax Invoice", the GST amount, and more). We cover the full checklist in what to put on a tax invoice in Australia.

Claiming GST credits

The upside of being registered: you can claim back the GST you pay on business purchases — tools, materials, equipment hire, work vehicle running costs, and so on. Keep your supplier tax invoices, and those credits reduce what you owe on your BAS.

Keep it simple with the right tools

The easiest way to stay on top of GST is to use invoicing software that calculates it for you and produces proper tax invoices automatically — so every invoice is compliant and your BAS time is far less painful.

MateInvoice handles GST and tax invoices out of the box for Australian trades — set your rate once and every quote and invoice is done right.

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