Registering for GST - the 12 Month Rule

The 12 Month Rule

You reach the GST turnover threshold if either:

• your ‘current GST turnover’ (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 or more for non-profit organisations).

• your ‘projected GST turnover’ (your total turnover for the current month and the next 11 months) is likely to be $75,000 or more ($150,000 or more for non-profit organisations).

Your GST turnover is your gross business income (not your profit), excluding any:

• GST you included in sales to your customers.

• Sales that are not for payment and are not taxable.

• Sales not connected with an enterprise you run.

• Input-taxed sales you make.

• Sales not connected with Australia.

See also:

• GST definitions

In working out your projected GST turnover, don't include amounts you receive for the sale of a business asset (such as the sale of a capital asset) or for any sale you made, or are likely to make, solely as a consequence of ceasing or substantially and permanently reducing the size of your business.

If your current GST turnover reaches or is more than the GST turnover threshold but you satisfy the ATO your projected GST turnover will be below the threshold, you do not have to register for GST.