GST for Freelancers and Contractors in Australia: The Complete Guide
Australia's gig economy has grown enormously over the past decade. The ABS estimates that more than one million Australians now work primarily as independent contractors or freelancers, with hundreds of thousands more running side hustles alongside traditional employment. Whether you are a graphic designer picking up projects on weekends, a full-time IT contractor rotating between enterprise clients, or a rideshare driver earning extra income, the Goods and Services Tax touches your working life in ways that are easy to overlook and expensive to get wrong.
Unlike traditional employees who have PAYG tax withheld automatically, freelancers and contractors carry the full weight of their own tax compliance. That includes deciding whether to register for GST, charging it on every invoice, claiming credits where you are entitled, and lodging Business Activity Statements on time. Getting these fundamentals right from the start protects your cash flow, keeps you on the right side of the ATO, and can even put money back in your pocket through input tax credits.
This guide walks through every aspect of GST that matters to Australian freelancers and independent contractors, with real numbers, practical examples, and the kind of detail you actually need to make informed decisions about your business.
Do Freelancers Need to Register for GST?
The fundamental rule is straightforward: if your GST turnover reaches $75,000 or more in a 12-month period, you are legally required to register for GST. You have 21 days from the date you realise you have hit or will hit that threshold to complete registration with the ATO. This applies whether you are a sole trader, operating through a company, or working under any other business structure.
For freelancers, the tricky part is that turnover can creep up without you noticing. Unlike a single employer paying a predictable salary, freelance income arrives in irregular amounts from multiple sources. You might earn $3,000 from one client in January, $8,000 from another in February, and land a $25,000 project in March. The ATO does not care that the money came from different places. Your GST turnover is the total of all business income combined.
Monitoring Income Across Multiple Clients
The ATO looks at your turnover on a rolling 12-month basis, not just a financial year. At any point during the year, you need to consider two tests. First, has your actual turnover in the past 12 months reached $75,000? Second, based on current contracts and expected work, is your turnover likely to reach $75,000 in the next 12 months? If the answer to either question is yes, registration is mandatory.
A practical approach is to track your cumulative invoiced amount at the end of each month. A simple spreadsheet with a running total is enough. When you reach $55,000 to $60,000, start paying close attention. If a new contract or busy period is approaching, you may cross the threshold sooner than expected.
Side Hustles and Combined Income
If you freelance on the side while also holding down a regular job, your employment salary does not count toward the GST turnover threshold. Only the income from your freelance or contracting activities is included. However, if you run multiple freelance activities, such as web development and photography, the income from all of those activities is combined into a single GST turnover figure.
For example, if you earn $45,000 from freelance web development and $35,000 from freelance photography, your combined GST turnover is $80,000 and you must register. It does not matter that neither activity individually exceeds $75,000.
Standard Threshold
$75,000 annual GST turnover for most freelancers and contractors
Ride-Share Exception
Taxi and ride-share drivers must register from the very first fare earned
Voluntary Option
Below $75,000, you can choose to register voluntarily for strategic benefits
Special Case: Ride-Share Drivers
There is one major exception to the $75,000 threshold. If you provide taxi travel or ride-sharing services through platforms like Uber, Ola, DiDi, or any similar service, you must register for GST from your very first dollar of income. There is no threshold. This rule has been in place since 1 August 2015 and applies even if you only drive occasionally and earn a few hundred dollars a month. You must include GST in every fare and lodge BAS returns like any other GST-registered business.
ABN vs GST Registration: Understanding the Difference
One of the most common points of confusion for new freelancers is the relationship between an Australian Business Number (ABN) and GST registration. These are two separate things, and having one does not automatically mean you have the other.
You Can Have an ABN Without Being GST-Registered
An ABN is a unique 11-digit identifier for your business. You need one to operate as a freelancer or contractor in Australia, and you can apply for it through the Australian Business Register. Having an ABN allows you to invoice clients, operate under a business name, and interact with the ATO.
GST registration is an additional step you take through the ATO, either at the same time you apply for your ABN or later. You can hold an ABN for years without being registered for GST, which is perfectly fine as long as your turnover stays below $75,000.
The ABN Withholding Rule
Here is why having an ABN matters even before GST enters the picture. If you provide services to a business and do not quote your ABN on the invoice, the paying business is legally required to withhold 47% of the payment amount and send it to the ATO. This is called "no ABN withholding" and it is designed to catch businesses and individuals who are not in the tax system.
In practical terms, this means a $1,000 invoice without an ABN could see you receiving only $530. The withheld amount is credited against your income tax at the end of the year, but the cash flow impact is severe. Always quote your ABN on every invoice.
ABN vs GST Registration Summary
| Feature | ABN Only | ABN + GST Registration |
|---|---|---|
| Can invoice clients | Yes | Yes |
| Must charge GST on sales | No | Yes (10%) |
| Can claim GST credits on purchases | No | Yes |
| Must lodge BAS | No | Yes |
| Issues tax invoices | No (regular invoices) | Yes |
| Avoids 47% withholding | Yes (if ABN quoted) | Yes (if ABN quoted) |
Should You Register for GST Voluntarily?
If your freelance income is below $75,000, you face a genuine strategic decision. Voluntary GST registration has real benefits, but it also introduces administrative obligations that may not be worthwhile for everyone. Here is how to think through the decision.
Benefits of Voluntary Registration
Claim GST credits on business expenses. This is the primary financial advantage. Every time you buy something for your business that includes GST, such as a new laptop, software subscriptions, or professional development courses, you can claim back the GST component. If you spend $5,500 on a new MacBook Pro (GST-inclusive), you reclaim $500. If you pay $660 per year for Adobe Creative Cloud, you reclaim $60. These credits add up, particularly in years when you make significant equipment purchases.
Claim GST on home office expenses. If you work from home, a portion of your electricity, internet, phone, and even rent or mortgage interest may have a GST component you can claim. The exact amount depends on the proportion of your home used for business and the proportion of the expense that relates to your work.
Professional credibility. Some larger businesses and government agencies prefer or require their contractors to be GST-registered. Being registered signals that you are running a legitimate, established business.
Drawbacks of Voluntary Registration
You must charge GST on all taxable sales. Once registered, every invoice you send to clients for taxable supplies must include 10% GST. If your client is a GST-registered business, this is neutral for them because they claim it back. But if your clients are individuals or non-GST-registered entities, your effective price just went up by 10%.
Administrative burden. You must lodge BAS returns (usually quarterly), maintain proper records of all GST collected and paid, keep tax invoices for five years, and ensure your bookkeeping separates GST from your income and expenses. This takes time, even with accounting software.
You cannot easily deregister. Once registered, you need to stay registered for at least 12 months. You can cancel after that, but only if your turnover is below $75,000 and you no longer want to be registered.
Break-Even Analysis: When Credits Outweigh the Hassle
Consider this scenario. You are a freelance photographer earning $50,000 per year. Your annual business expenses that include GST total approximately $8,800 (GST-inclusive). The GST component of those expenses is $800 per year. If you spend roughly two hours per quarter managing your BAS, that is eight hours per year. If you value your time at $60 per hour, the administrative cost is around $480. In this case, the $800 in credits exceeds the $480 in time cost, making voluntary registration worthwhile on paper.
However, if your business expenses are low, say $2,200 per year with only $200 in reclaimable GST, the maths does not work. The administrative time alone costs more than the credits you would recover.
Voluntary Registration: Two Scenarios
Scenario A: High Business Expenses
Annual freelance income: $50,000
Annual business expenses (GST-inc): $11,000
GST credits reclaimable: $1,000
Estimated admin time: 8 hours/year at $60/hr = $480
Net benefit: $520 per year. Registration is worthwhile.
Scenario B: Low Business Expenses
Annual freelance income: $30,000
Annual business expenses (GST-inc): $2,200
GST credits reclaimable: $200
Estimated admin time: 8 hours/year at $60/hr = $480
Net cost: $280 per year. Registration is not worthwhile.
Creating Tax Invoices as a Freelancer
Invoicing correctly is one of the most practical aspects of GST compliance. The type of invoice you issue depends on whether you are registered for GST, and getting this wrong can cause problems for both you and your clients.
Regular Invoice vs Tax Invoice
If you are not registered for GST, you issue a regular invoice. This shows your ABN, the date, a description of the work, and the total amount. You do not show any GST amount because you are not charging GST. You should not include the words "Tax Invoice" on this document.
If you are GST-registered, you issue a tax invoice. This is a legal document that your client needs in order to claim back the GST you charged them. A tax invoice has specific requirements set by the ATO, and missing any of them can invalidate the document.
What Must Be on a Tax Invoice
Tax Invoice Requirements
For all tax invoices (any amount):
- The words "Tax Invoice" stated prominently
- Your identity (business name or trading name)
- Your ABN
- The date the invoice is issued
- A brief description of the goods or services supplied
- The GST amount for each line item, or a statement that the total price includes GST
- The total price including GST
For tax invoices of $1,000 or more (GST-inclusive), also include:
- The buyer's identity or ABN
- The quantity of each item supplied (where relevant)
Invoice Template Structure for Freelancers
Here is how a typical freelancer tax invoice is structured. Suppose you are a GST-registered web developer who has completed a project for a client.
Sample Freelancer Tax Invoice
TAX INVOICE
From: Jane Smith Web Development | ABN: 12 345 678 901
To: Acme Marketing Pty Ltd | ABN: 98 765 432 109
Invoice Number: INV-2025-014 | Date: 15 February 2025
---
Website redesign and development: $4,500.00
Content migration and testing: $1,500.00
---
Subtotal (excl. GST): $6,000.00
GST (10%): $600.00
Total (incl. GST): $6,600.00
Payment terms: 14 days | BSB: 062-000 | Account: 1234 5678
If you are not GST-registered, the same invoice would simply show the total as $6,000.00 with no GST line, and the document would be headed "Invoice" rather than "Tax Invoice." Use our free Australian GST calculator to verify the GST component on any invoice amount.
Claiming GST Credits on Business Expenses
One of the biggest advantages of GST registration for freelancers is the ability to claim input tax credits on business purchases. Every dollar of GST you recover is a dollar that stays in your business. Here are the main categories of expenses where freelancers commonly claim GST credits.
Home Office Expenses
If you work from home, you can claim the GST component of certain home expenses in proportion to your business use. The key word is "proportion." You cannot claim the full GST on your electricity bill if you only use one room of a four-room house for work.
The typical approach is to calculate the floor area of your dedicated workspace as a percentage of your total home area, then apply that percentage to relevant bills. For example, if your home office is 15 square metres out of a 120-square-metre home, your business-use proportion is 12.5%. If your quarterly electricity bill is $440 (GST-inclusive), the GST is $40, and you can claim 12.5% of that, which is $5.00 per quarter.
Computer Equipment and Software
This is where freelancers often see the biggest GST credits. Laptops, monitors, keyboards, external drives, printers, and any other equipment purchased for business use attract GST credits. If you buy a $2,200 laptop (GST-inclusive), the GST component is $200 and that entire $200 is claimable if the laptop is used 100% for business. If you use it 70% for business and 30% for personal, you claim 70% of the GST, which is $140.
Software subscriptions follow the same principle. Adobe Creative Cloud, Microsoft 365, accounting software, project management tools, and cloud storage are all legitimate business expenses with claimable GST, provided they are used for business purposes.
Phone and Internet
Most freelancers use their phone and internet connection for both business and personal purposes. You can claim the GST on the business portion. The ATO accepts several methods for calculating the split, including keeping a diary of calls and data usage over a representative four-week period and applying that percentage for the year.
If your monthly phone bill is $99 (GST-inclusive) and you determine 60% is business use, the claimable GST is $99 divided by 11 (to extract the GST), which gives $9.00, then 60% of that, which is $5.40 per month or $64.80 per year.
Professional Development
Courses, workshops, conferences, and training directly related to your freelance work are deductible, and the GST component is claimable. An $880 UX design workshop includes $80 in GST that you can claim back. Online courses through Australian platforms that charge GST are also eligible.
Travel for Work
If you travel to meet clients, attend industry events, or work on-site, expenses such as flights (domestic), accommodation, car hire, and parking include GST you can claim. However, meals and entertainment have specific rules, and you generally cannot claim GST on food and drink consumed as part of entertainment.
What You Cannot Claim
Personal Expenses
Groceries, personal clothing, gym memberships, and anything not directly related to your business. Even if purchased during work hours, personal items are not deductible.
GST-Free Supplies
Some items are GST-free (such as basic food, certain medical services, and some educational courses). There is no GST to claim on these because none was charged.
Expenses Without a Tax Invoice
You need a valid tax invoice from the supplier to claim a GST credit. A bank statement or email receipt alone is not enough. For purchases of $82.50 or less (GST-inclusive), a simplified receipt is acceptable.
Private Portion of Mixed-Use Items
If you use something partly for personal use, you can only claim the business portion. Claiming 100% on a laptop you use 50% for Netflix is incorrect and can trigger ATO scrutiny.
Managing GST with Multiple Clients
Freelancers rarely have a single income source. Managing GST across multiple clients, platforms, and payment methods requires a system. Without one, BAS time becomes stressful and error-prone.
Tracking Income from Different Sources
Every payment you receive for freelance work should be recorded with the client name, invoice number, amount (GST-exclusive), GST amount, and total. If you are juggling five or six clients simultaneously, it is easy to lose track of individual payments, especially when some clients pay late or in instalments.
Set up a tracking method that works for you. At minimum, maintain a spreadsheet with columns for date, client, invoice number, amount excluding GST, GST collected, and total received. Reconcile this against your bank account weekly or fortnightly. The more frequently you reconcile, the fewer surprises at BAS time.
Using Accounting Software
For most freelancers earning above $30,000 to $40,000, accounting software pays for itself in time saved. The three most popular options for Australian freelancers are:
- Xero - Excellent for freelancers. Automatic bank feeds, GST tracking on every transaction, BAS report generation, and invoicing. Starts from around $29 per month for the basic plan.
- MYOB - A long-standing Australian option with strong BAS integration. Particularly good if your BAS agent or accountant prefers MYOB. Plans start from around $25 per month.
- QuickBooks Online - User-friendly interface with solid GST handling. Good for freelancers who also have international clients. Plans start from around $15 per month.
All three products automatically calculate the GST on income and expenses, generate BAS-ready reports, and can even lodge your BAS directly with the ATO. The time savings alone typically justify the monthly cost.
Keeping Receipts and Records
The ATO requires you to keep records for five years from when you prepare or obtain them, or five years after they relate to, whichever is later. For freelancers, this means keeping all tax invoices, bank statements, contracts, and any records of GST collected and paid for at least five years.
Digital records are acceptable, and the ATO encourages them. Snap photos of paper receipts with your phone and store them in a cloud-based system. Apps like Hubdoc (included with Xero), Receipt Bank (now Dext), or even a well-organised Google Drive folder work. The key is that your records must be legible, complete, and retrievable when needed.
Separating Business and Personal Finances
Open a separate bank account for your freelance business. This is not legally required for sole traders, but it is one of the single most effective things you can do for clean GST management. When all business income flows into one account and all business expenses flow out of it, reconciliation is straightforward. When business and personal transactions are mixed in the same account, every BAS period becomes a time-consuming exercise in sorting.
BAS Lodgement for Freelancers
Once you are GST-registered, you must lodge Business Activity Statements with the ATO. Most freelancers lodge quarterly, which means four BAS submissions per year. Here is how it works in practice.
Quarterly vs Monthly Lodgement
If your GST turnover is under $20 million (which covers virtually all freelancers), you can lodge quarterly. The quarters follow the financial year: July to September, October to December, January to March, and April to June. Each BAS is due 28 days after the end of the quarter, except for the December quarter which has a 28 February deadline.
Monthly lodgement is required if your turnover exceeds $20 million or if you choose to report monthly. Some freelancers with very regular income prefer monthly lodgement because the amounts are smaller and easier to manage. But for most, quarterly is the practical choice.
Simplified BAS Reporting
Small businesses with a turnover under $10 million are automatically eligible for simplified BAS reporting. Under this method, you only need to complete three GST-related labels on your BAS, which dramatically reduces the complexity of the form.
The Three Key Labels: G1, 1A, and 1B
Understanding Your BAS Labels
G1 - Total Sales:
Your total business income for the quarter, including both taxable and GST-free sales. Report the GST-inclusive amount for taxable sales. If you earned $22,000 (GST-inclusive) from freelance work and $1,000 from a GST-free supply, G1 is $23,000.
1A - GST on Sales:
The total GST you collected from clients during the quarter. This is the GST component of your taxable sales only. If your taxable sales totalled $22,000 (GST-inclusive), the GST on sales is $22,000 divided by 11 = $2,000.
1B - GST on Purchases:
The total GST you paid on business purchases during the quarter. This includes only GST on items you are entitled to claim a credit for. If your business purchases totalled $4,400 (GST-inclusive), the GST on purchases is $4,400 divided by 11 = $400.
Your net GST payable is 1A minus 1B. In the example above, that is $2,000 minus $400 = $1,600 payable to the ATO. If 1B is larger than 1A (which can happen in quarters where you make large equipment purchases), the ATO refunds the difference.
Practical BAS Example with Numbers
Freelance Writer: Q3 BAS (January to March)
Income received during the quarter:
- Client A - Content writing: $5,500 (incl. GST of $500)
- Client B - Copywriting project: $8,800 (incl. GST of $800)
- Client C - Blog management: $3,300 (incl. GST of $300)
Total income: $17,600 | Total GST collected: $1,600
Business expenses during the quarter:
- New laptop: $2,200 (GST of $200)
- Software subscriptions: $330 (GST of $30)
- Internet (business portion 60%): $198 total, GST claimable $10.80
- Office supplies: $110 (GST of $10)
Total GST credits: $250.80
Net GST payable (1A - 1B): $1,600 - $250.80 = $1,349.20
This amount is due to the ATO by 28 April.
Common Mistakes Freelancers Make with GST
After helping hundreds of freelancers with their GST obligations, certain mistakes come up again and again. Being aware of these pitfalls can save you from unexpected tax bills, penalties, and the stress of ATO correspondence.
Not Monitoring the $75,000 Threshold
Many freelancers coast along assuming they are under the threshold, then discover in hindsight that they crossed it months ago. The ATO can backdate your GST registration and require you to account for GST on all sales made since the date you should have registered. This means you effectively owe 1/11th of every dollar you earned during that period, out of your own pocket because you never charged it to clients.
Failing to Separate Personal and Business Expenses
When everything runs through one bank account, it is easy to accidentally claim GST credits on personal purchases. The ATO uses data matching extensively and can identify patterns suggesting over-claiming. An audit prompted by mixed accounts can be lengthy and costly.
Not Keeping Valid Tax Invoices
A credit card statement is not a tax invoice. A PayPal receipt is not a tax invoice. To claim a GST credit, you need a valid tax invoice from the supplier showing their ABN, the GST amount, and other required details. If audited, claims without supporting tax invoices are simply disallowed.
Mixing Up ABN Invoices with Tax Invoices
If you are not GST-registered, you issue a regular invoice showing your ABN. If you are registered, you issue a tax invoice. Issuing a document labelled "Tax Invoice" when you are not registered, or showing a GST component on a non-tax-invoice, creates confusion for clients and can have legal implications.
Forgetting to Set Aside GST Collected
The GST you collect from clients is not your money. It belongs to the ATO. A common and painful mistake is treating a $11,000 payment as $11,000 of income and spending it all, then scrambling to find $1,000 when BAS time arrives. A good practice is to transfer 10% of every payment received into a separate savings account earmarked for GST and tax.
Practical Example: A Year in the Life of a Freelance Graphic Designer
To bring all of this together, let us walk through a complete financial year for a fictional freelance graphic designer named Alex. Alex is GST-registered, works from a home office, and has multiple clients. This example shows realistic numbers and demonstrates how GST flows through a freelance business across four quarters.
Alex's Business Profile
- Sole trader, GST-registered, cash accounting method
- Home office: 12 square metres of a 100-square-metre apartment (12% business use)
- Equipment: MacBook Pro, external monitor, Wacom tablet
- Software: Adobe Creative Cloud, Figma, Dropbox Business
- Typical clients: marketing agencies, small businesses, startups
Quarter 1: July to September
Q1 Summary (July - September)
Income:
Logo design (Client A): $3,300 (incl. GST $300)
Brand identity package (Client B): $8,800 (incl. GST $800)
Social media graphics (Client C): $2,200 (incl. GST $200)
Website mockups (Client D): $5,500 (incl. GST $500)
Total income: $19,800 | GST collected: $1,800
Expenses (GST-inclusive amounts):
Adobe Creative Cloud (3 months): $263.67 (GST $23.97)
Figma subscription (3 months): $69.00 (GST $6.27)
Internet (12% of $330): $39.60 (GST $3.60)
Phone (50% business of $297): $148.50 (GST $13.50)
Office supplies: $88.00 (GST $8.00)
Total GST credits: $55.34
Q1 BAS: $1,800 - $55.34 = $1,744.66 payable
Due date: 28 October
Quarter 2: October to December
Q2 Summary (October - December)
Income:
Marketing collateral (Client B): $4,400 (incl. GST $400)
Packaging design (Client E): $6,600 (incl. GST $600)
Annual report layout (Client F): $7,700 (incl. GST $700)
Total income: $18,700 | GST collected: $1,700
Expenses (GST-inclusive amounts):
Adobe Creative Cloud (3 months): $263.67 (GST $23.97)
Figma subscription (3 months): $69.00 (GST $6.27)
New monitor: $880.00 (GST $80.00)
Internet (12% of $330): $39.60 (GST $3.60)
Phone (50% of $297): $148.50 (GST $13.50)
Design conference ticket: $550.00 (GST $50.00)
Total GST credits: $177.34
Q2 BAS: $1,700 - $177.34 = $1,522.66 payable
Due date: 28 February
Quarter 3: January to March
Q3 Summary (January - March)
Income:
Website redesign (Client A): $11,000 (incl. GST $1,000)
Social media templates (Client G): $3,300 (incl. GST $300)
Illustration project (Client H): $4,400 (incl. GST $400)
Total income: $18,700 | GST collected: $1,700
Expenses (GST-inclusive amounts):
Adobe Creative Cloud (3 months): $263.67 (GST $23.97)
Figma subscription (3 months): $69.00 (GST $6.27)
New Wacom tablet: $660.00 (GST $60.00)
Internet (12% of $330): $39.60 (GST $3.60)
Phone (50% of $297): $148.50 (GST $13.50)
Online UX course: $440.00 (GST $40.00)
Travel to client (flights + hotel): $715.00 (GST $65.00)
Total GST credits: $212.34
Q3 BAS: $1,700 - $212.34 = $1,487.66 payable
Due date: 28 April
Quarter 4: April to June
Q4 Summary (April - June)
Income:
Brand refresh (Client B): $9,900 (incl. GST $900)
Print design (Client I): $3,300 (incl. GST $300)
UI design (Client D): $7,700 (incl. GST $700)
Icon set commission (Client J): $2,200 (incl. GST $200)
Total income: $23,100 | GST collected: $2,100
Expenses (GST-inclusive amounts):
Adobe Creative Cloud (3 months): $263.67 (GST $23.97)
Figma subscription (3 months): $69.00 (GST $6.27)
Internet (12% of $330): $39.60 (GST $3.60)
Phone (50% of $297): $148.50 (GST $13.50)
Ergonomic chair (100% business): $770.00 (GST $70.00)
Accountant fees (BAS preparation): $550.00 (GST $50.00)
Total GST credits: $167.34
Q4 BAS: $2,100 - $167.34 = $1,932.66 payable
Due date: 28 July
Annual Summary for Alex
Full-Year GST Summary
| Quarter | Income (incl. GST) | GST Collected (1A) | GST Credits (1B) | Net Payable |
|---|---|---|---|---|
| Q1 (Jul-Sep) | $19,800 | $1,800 | $55.34 | $1,744.66 |
| Q2 (Oct-Dec) | $18,700 | $1,700 | $177.34 | $1,522.66 |
| Q3 (Jan-Mar) | $18,700 | $1,700 | $212.34 | $1,487.66 |
| Q4 (Apr-Jun) | $23,100 | $2,100 | $167.34 | $1,932.66 |
Annual totals: Income $80,300 (incl. GST) | GST collected $7,300 | GST credits $612.36 | Net GST paid to ATO: $6,687.64
Alex's GST-exclusive income for the year is $73,000. Without GST registration, Alex would not have been able to claim the $612.36 in credits. More importantly, since Alex's turnover exceeds $75,000, registration was mandatory in this scenario.
Tips for Staying on Top of GST as a Freelancer
Beyond the technical requirements, here are some practical habits that make GST management easier:
- Set aside GST as soon as you are paid. Transfer one-eleventh of every client payment into a separate savings account immediately. When BAS time comes, the money is already waiting.
- Reconcile your accounts weekly. Spending 15 minutes each week is far less painful than spending an entire weekend catching up before a BAS deadline.
- Use cloud accounting software. The automatic bank feeds and GST categorisation save hours of manual work each quarter.
- Photograph receipts immediately. Paper receipts fade, get lost, and end up in the washing machine. Snap a photo the moment you make a business purchase.
- Set calendar reminders for BAS due dates. Mark the due date and also set a reminder two weeks before, giving yourself time to prepare the figures.
- Review your threshold quarterly. Check your rolling 12-month turnover every quarter. If you are approaching $75,000, start preparing for registration.
Calculate GST on Any Freelance Invoice
Whether you need to add GST to a quote or extract the GST component from a payment, our free calculator handles both directions instantly and accurately.
Use Free GST CalculatorConclusion
GST is an unavoidable part of freelancing in Australia once your income reaches the registration threshold, and it can be a strategic tool even before that point. The key to managing it well is understanding the rules, setting up systems early, and staying consistent with your record-keeping.
Register when required (or when it makes financial sense), issue correct tax invoices, claim every credit you are entitled to, and lodge your BAS on time. If the administrative side feels overwhelming, invest in accounting software or engage a registered BAS agent. The cost of professional help is itself a tax-deductible, GST-claimable business expense.
The freelancers who struggle most with GST are those who ignore it until there is a problem. The freelancers who find it manageable are those who build it into their workflow from day one. With the information in this guide, you have everything you need to be in the second group.