GST and ABN - do working holiday makers need to register for GST?

What is the GST registration threshold?

The GST registration threshold is based on annual turnover from your business activities, not your total income. The key numbers:

• Under $75,000 per year of ABN turnover: GST registration is not required for most activities
• $75,000 or more per year: GST registration is mandatory within 21 days of crossing the threshold
• Voluntary registration is available below the threshold, but rarely worthwhile for working holiday makers

Turnover means gross income from your business, before expenses. Employment income (paid via your TFN) does not count toward the threshold.

What happens if you are not registered for GST?

If your ABN turnover stays below $75,000 and you are not in a rideshare or delivery role:

• You do not charge GST on your invoices
• You do not have to lodge BAS (Business Activity Statements) with the ATO
• Your only tax obligation under the ABN is to declare your income on your annual tax return and pay income tax on the net earnings
• You do not need to worry about quarterly GST reporting

This is the normal situation for almost all working holiday makers with an ABN.

When does GST registration apply to you?

GST registration is required when:

• Your business turnover reaches or exceeds $75,000 in any 12-month period
• You drive for rideshare platforms (Uber, DiDi, Ola) regardless of income level
• You drive for food delivery platforms (Uber Eats, DoorDash, Menulog) regardless of income level
• You provide taxi services

If you are in rideshare or delivery, register for GST from day one, even if you only do a few trips. The platforms typically remind drivers about this, but the obligation sits with you.

What if you have to register for GST?

If GST applies to you:

• Add 10% to your invoices and collect it from clients
• Lodge a BAS quarterly (or monthly for higher turnover)
• Remit the collected GST to the ATO
• You can claim back GST you paid on business expenses

A registered tax agent can handle BAS lodgement and make this straightforward.

What is the main tax obligation for most contractors?

For most working holiday makers with an ABN, GST is not a concern. Your real obligations are simpler:

• Keep records of all income throughout the year
• Set aside enough to cover income tax (around 15-20% of net earnings is a safe starting point)
• Declare everything in your tax return at financial year end