Do Freelancers Need to Register for GST?
You must register for GST if your current or projected annual turnover (gross income from all freelance work) reaches $75,000. This is total revenue — not profit, not after expenses.
Many freelancers hover around this threshold. If you're earning $1,500/week from combined clients, you're at $78K — you must register.
Under $75K? You can voluntarily register. Benefits: claim GST credits on equipment, software subscriptions, and co-working spaces. Downside: you must charge GST to Australian clients (making you 10% more expensive vs. non-registered competitors).
Invoicing Australian vs. Overseas Clients
This is where freelancers differ from most businesses:
| Client Location | GST on Invoice? | Explanation |
|---|---|---|
| Australian business/individual | ✅ Yes (if GST-registered) | Standard 10% GST applies. Must issue a tax invoice. |
| Overseas business (e.g. US startup) | ❌ No — GST-free export | Services consumed outside Australia are GST-free. Invoice says "GST-free — exported service". |
| Overseas individual (e.g. US person) | ❌ No — GST-free | Same rule — service consumed overseas. |
| Australian subsidiary of overseas company | ✅ Yes | The recipient is in Australia, even if parent is overseas. |
What GST Credits Can Freelancers Claim?
If you're GST-registered, you can claim back GST paid on business purchases:
| Expense | GST Credit? | Notes |
|---|---|---|
| Computer & monitors | ✅ Yes | MacBook, external display, peripherals |
| Software subscriptions | ✅ Yes* | Adobe, Figma, GitHub, etc. *Only if GST is charged (many are overseas = no GST) |
| Internet & phone | ✅ Yes* | *Business-use portion only (e.g. 60%) |
| Co-working space | ✅ Yes | Full GST credit if used solely for work |
| Home office | ✅ Yes* | *Electricity, furniture — business portion only. See ATO occupancy rules. |
| Professional development | ✅ Yes | Courses, conferences, books related to your work |
| Accounting software | ✅ Yes | Xero, MYOB subscriptions |
| Travel to client site | ✅ Yes | Fuel, public transport, parking for business travel |
| Netflix "for research" | ❌ No | Nice try 😄 |
The Freelancer BAS — Quarterly Reporting
Most freelancers lodge BAS quarterly. Here's what goes where:
- G1 (Total sales): All invoices issued — AU + overseas clients combined
- G2 (Export sales): Overseas client invoices (GST-free exports)
- G3 (Other GST-free): Usually $0 for freelancers
- 1A (GST on sales): GST you collected from AU clients
- 1B (GST on purchases): GST you paid on business expenses
If 1B > 1A, you get a refund — common for freelancers who bill mostly overseas clients but buy equipment locally.
Freelancer vs. Employee: The GST Angle
If you're doing full-time work for one client through an ABN, the ATO may treat you as a "disguised employee" — which means no GST registration needed (the company should be paying super and PAYG instead).
Key indicators the ATO looks at:
- Do you control how the work is done? (Freelancer = yes)
- Do you use your own tools/equipment? (Freelancer = yes)
- Can you subcontract the work? (Freelancer = yes)
- Do you bear financial risk? (Freelancer = yes)
- Do you work set hours at their office? (Employee indicator)
Common Freelancer GST Mistakes
- Charging GST to overseas clients — Exported services are GST-free. Don't add 10% to invoices going to the US/UK/etc.
- Not counting overseas income toward the $75K threshold — All turnover counts, even GST-free exports.
- Claiming GST on overseas software — Adobe (Ireland), GitHub (US) don't charge AU GST. No GST paid = no credit to claim.
- Mixing personal and business expenses — That new iPad you "mostly" use for work? ATO wants a clear split.
- Forgetting to lodge BAS — Even if you owe $0, you must still lodge. Penalties for late lodgement.
Freelancer GST Quick Reference
Related Guides
🔧 GST for Tradies
Plumbers, sparkies, builders — quoting with GST, claiming credits on tools & materials.
🚗 GST for Rideshare Drivers
Uber, Ola, DiDi — mandatory GST registration regardless of income.
📊 Xero vs MYOB vs QuickBooks
Which accounting software is best for your freelance business?
Need Accounting Software?
For freelancers, Xero is particularly popular — bank feed integration, automatic invoice reminders, and BAS lodgement built in. If you prefer something simpler, QuickBooks Self-Employed is designed specifically for sole traders and freelancers.