GST basics for tradies

If you are running a trade business in Australia, you need to understand GST. It is not optional — the ATO takes it seriously, and getting it wrong can mean penalties. The good news is that it is not as complicated as it sounds.

When do you need to register for GST?

You must register for GST if your business has a GST turnover of $75,000 or more per year. Once you are registered, you need to charge GST on your services and can claim back GST on your business expenses.

Even if you are under the threshold, you can choose to register voluntarily. This can be beneficial because it allows you to claim GST credits on your purchases.

How GST works on your quotes

When you quote a job for $1,000 plus GST, the total the client pays is $1,100. The $100 GST is not your money — you are collecting it on behalf of the ATO.

Make sure your quotes clearly show whether prices are inclusive or exclusive of GST. This avoids confusion and disputes with clients.

What you can claim GST credits on

As a GST-registered business, you can claim back the GST you pay on business expenses. Common claims for tradies include:

Tools and equipment
Vehicle fuel and maintenance
Materials and supplies
Work clothing and PPE
Insurance premiums
Accounting and software fees
Mobile phone and internet

Keep all your receipts. If you do not have a tax invoice, you cannot claim the credit.

Lodging your BAS

Business Activity Statements (BAS) are how you report and pay your GST to the ATO. Most tradies lodge quarterly, but you can choose to lodge monthly if you prefer.

Your BAS shows the difference between the GST you collected from clients and the GST you paid on business expenses. If you collected more than you paid, you owe the ATO. If you paid more than you collected, you get a refund.

Tips for making BAS time easier

Track expenses as you go, not at the end of the quarter
Use software that categorises expenses automatically
Snap receipts with your phone and store them digitally
Separate business and personal bank accounts
Set aside GST collected in a separate savings account

Get help when you need it

Tax can be complex, and there is no shame in getting professional help. A good accountant who understands the trades industry can save you far more than they cost. Apps like Talk2Quote also help by automatically categorising expenses and generating BAS-ready reports.

GST for Tradies: What You Need to Know