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Updated June 2026

GST for Australian Freelancers & Sole Traders

Freelancing under your own ABN doesn’t change the A$75,000 threshold — but it does change how GST interacts with your invoicing and your combined income streams.

Last updated: June 2026

Threshold
A$75,000
rolling 12 months, same for any structure
Applies to
Sole traders & companies equally
no separate freelancer threshold
You need
An ABN
before you can register for GST

Does freelancing under an ABN change your GST threshold?

No. The A$75,000 GST registration threshold applies identically whether you operate as a sole trader with an ABN, a partnership, or a company. The ATO looks at your business’s total GST turnover, not its legal structure. A freelance consultant invoicing A$90,000 a year under their own ABN has exactly the same GST obligation as a company with the same turnover.

If you freelance for multiple clients, all of your invoiced income across every client is combined for the purpose of the threshold — you can’t treat each client relationship as having its own separate limit.

What counts toward your GST turnover

Your GST turnover is your gross business income (before expenses) from taxable and GST-free supplies, excluding input-taxed supplies and amounts not related to running the business. If you freelance on the side of full-time PAYG employment, your salary and wages don’t count — only your self-employed freelance income is assessed against the A$75,000 threshold.

Secondary freelance income (an online course, ebook sales, consulting on the side of a main contract) is typically combined with your primary freelance income under the same ABN, since it’s all part of your enterprise’s turnover.

Should you register voluntarily below A$75,000?

Many freelancers who invoice mostly GST-registered businesses register voluntarily before hitting the threshold, since the client can claim back the GST you charge — it’s cost-neutral to them, while you gain the ability to claim GST credits on your own business expenses (laptop, software, home office costs). Freelancers who work mainly with consumers or small unregistered businesses feel voluntary registration more directly, since it becomes a real 10% price increase from the client’s perspective.

Frequently asked questions

Do I need an ABN before I can register for GST?

Yes. You must have an Australian Business Number before you can register for GST — the two are usually applied for together through the Business Registration Service.

If I have a day job and freelance on the side, does my salary count toward the GST threshold?

No. PAYG salary and wages from employment are not part of your GST turnover. Only your self-employed enterprise income is assessed against the A$75,000 threshold.

Do I charge GST separately for each client?

No. GST registration is per ABN/enterprise, not per client. Your combined turnover across all clients counts toward the single threshold.

Can I claim GST credits on equipment bought before I registered?

In some cases yes, on goods still held and used in the business at registration, subject to normal input tax credit rules and record-keeping requirements. Keep your purchase invoices.

Does being a sole trader mean simpler GST reporting than a company?

Not necessarily — GST reporting requirements (BAS, record keeping) are the same regardless of structure. Sole traders do report GST alongside individual income tax rather than company tax, which is a separate consideration.

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General guidance only. Freelance and sole trader circumstances vary. Always verify with the ATO or consult a qualified accountant before making decisions.

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