Do Tradies Charge GST? When You Must, When You Don't — 2026

Yes — most tradies in Australia charge GST. But not all tradies have to. It depends on how much you earn. Here is the complete, plain-English answer to whether you need to charge GST, what happens when you cross the threshold, and what your invoices must show.

When a Tradie MUST Register for GST

GST registration is compulsory when your business turnover reaches or is likely to reach $75,000 in any 12-month period.

The $75,000 threshold is based on your gross turnover — total invoiced revenue before any deductions. A plumber who invoices $90,000 a year must be registered, even if their net profit after expenses is only $50,000.

Once registered, you must:

• Add 10% GST to all your invoices
• Lodge a BAS (Business Activity Statement) quarterly or monthly
• Pay the net GST (what you collected minus what you paid) to the ATO
• Keep tax invoices for all purchases so you can claim GST credits

When GST Registration Is Optional

If your turnover is under $75,000, GST registration is optional. You can choose to register or not.

Tradies who don't register cannot charge GST — it's one or the other. An unregistered tradie who adds "GST" to their invoices is doing so incorrectly and must remove it.

Benefits of Registering Early — Even Under $75,000

Some tradies voluntarily register for GST even before they hit the threshold because:

• You can claim GST credits on all your business purchases. If you buy $5,000 of tools in a quarter, you claim back $454.55 in GST — a real cash benefit
• You look more established — registered businesses appear more professional to commercial clients and builders
• Chattel mortgage GST benefit — if you buy a work vehicle via chattel mortgage while GST-registered, you claim the GST back on your next BAS. On a $50,000 ute that's $4,545 back. Significant.

The downside: more admin (quarterly BAS) and your prices effectively increase by 10% for residential clients who can't claim GST back.

What Must Go on a Tradie's GST Invoice

If you are GST-registered, every invoice over $82.50 (including GST) must be a tax invoice and include:

• The words "Tax Invoice" clearly visible
• Your business name and ABN
• Date of the invoice
• Description of the goods or services provided
• The GST amount — either listed separately or a statement that the total includes GST
• Total price including GST

For invoices of $1,000 or more (including GST), you must also include the buyer's ABN or name.

→ Full guide to tradie invoicing — what must be on every invoice →

→ Free ATO-compliant invoice generator →

BAS — Paying Your GST to the ATO

Registered tradies lodge a BAS each quarter (or monthly for higher turnover). Your BAS summarises:

• 1A — GST on sales: total GST you collected from clients
• 1B — GST on purchases: total GST you paid on business expenses
• Net GST: 1A minus 1B — this is what you pay (or what the ATO refunds you)

Example: You collected $9,000 GST from clients (1A). You paid $2,000 GST on tools, materials and expenses (1B). Net GST owed to ATO: $7,000.

Common GST Mistakes Tradies Make

• Not registering after hitting $75,000 — the ATO can back-date your registration and require you to remit GST you never collected from clients. Painful.
• Spending your GST money — the GST you collect belongs to the ATO, not you. Keep it in a separate account or sub-account until BAS time.
• Not claiming GST credits on purchases — every business expense that includes GST (tools, fuel, materials) is a credit you can claim back. Missing these costs you real money.
• No tax invoice from suppliers — you need a valid tax invoice to claim a GST credit. A receipt is not always enough if it doesn't show the supplier's ABN and a GST amount.
• Charging GST when not registered — illegal. If you're not registered, you cannot add GST to invoices.