Q: Do sole traders have to pay GST?

Only if registered. You must register if your GST turnover is $75,000+ in a 12-month period, or immediately

Q: Can a sole trader deregister from GST?

Yes if turnover falls below $75,000, you can ask the ATO to cancel registration. You’ll stop lodging BAS and claiming credits.

Q: What happens if a sole trader forgets to register?

The ATO may backdate your registration, making you pay GST on past sales (even if you didn’t charge clients) and may add penalties/interest .

Q: How do sole traders pay GST to the ATO?

GST is reported in your BAS (monthly, quarterly, or annually). Payments can be made via myGov , BPAY, credit card, or direct debit

Q: Do sole traders charge GST to international clients?

Usually no, most exports are GST-free , though special rules apply for digital services.

Q: How often do I calculate GST for reporting?

When lodging your BAS , it is usually quarterly , sometimes monthly.

Q: What is the 80% rule for sole traders?

The 80% rule is part of the ATO’s Personal Services Income (PSI) rules. If more than 80% of your income comes from one client, you may be treated like an employee for tax purposes, limiting deductions.

Question 1

Do sole traders have to pay GST?

Accepted Answer

Only if registered. You must register if your GST turnover is $75,000+ in a 12-month period, or immediately

Question 2

Do I have to pay GST if I earn under $75,000?

Accepted Answer

No, registration is optional below the threshold.

Question 3

Can a sole trader deregister from GST?

Accepted Answer

Yes if turnover falls below $75,000, you can ask the ATO to cancel registration. You’ll stop lodging BAS and claiming credits.

Question 4

What happens if a sole trader forgets to register?

Accepted Answer

The ATO may backdate your registration, making you pay GST on past sales (even if you didn’t charge clients) and may add penalties/interest.

Question 5

How do sole traders pay GST to the ATO?

Accepted Answer

GST is reported in your BAS (monthly, quarterly, or annually). Payments can be made via myGov, BPAY, credit card, or direct debit

Question 6

Do sole traders charge GST to international clients?

Accepted Answer

Usually no, most exports are GST-free, though special rules apply for digital services.

Question 7

How often do I calculate GST for reporting?

Accepted Answer

When lodging your BAS, it is usually quarterly, sometimes monthly.

Question 8

What is the 80% rule for sole traders?

Accepted Answer

The 80% rule is part of the ATO’s Personal Services Income (PSI) rules. If more than 80% of your income comes from one client, you may be treated like an employee for tax purposes, limiting deductions.