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

GST, or Goods and Services Tax, is a 10% tax applied to most goods and services sold in Australia. Businesses that earn more than $75,000 per year from their business activities are required to register for GST. For the vast majority of working holiday makers, this threshold is unlikely to be reached during a single visit, which means GST registration is generally not required.

The $75,000 threshold

The GST registration threshold is based on your annual turnover from business activities, not your total income. If you earn under $75,000 per year from your contracting or freelance work, you are not required to register for GST. You can choose to register voluntarily, but there is rarely a good reason to do so at income levels typical of working holiday makers.

What happens if you are not registered for GST

If you are not registered for GST, you simply do not charge it on your invoices and you do not need to lodge BAS (Business Activity Statements) with the ATO. Your tax obligations are limited to declaring your income in your annual tax return and paying income tax on your net earnings.

When GST might apply

If you are doing high-volume contracting work that pushes your earnings toward or above $75,000 in a year, you will need to register for GST. In that case, you add 10% to your invoices, collect it from your clients, and remit it to the ATO quarterly through a BAS.

Rideshare and food delivery drivers who use platforms operating in Australia are an exception. These drivers are required to register for GST regardless of their income level, even if they earn well under the $75,000 threshold. If you are doing rideshare or delivery work, check the specific rules that apply to your platform.

Your main tax obligation as a contractor

For most working holiday makers with an ABN, the primary tax obligation is straightforward. Keep records of your income throughout the year, set aside enough to cover your income tax, and declare everything in your tax return at the end of the financial year. GST is an additional layer that most will not need to think about.

Need help?

Not sure about your GST obligations?

We help working holiday makers understand exactly what they need to do with their ABN and tax obligations. Get in touch and we will point you in the right direction.