Do I Need to Register for GST?
You must register for GST if your annual turnover (gross income, not profit) is $75,000 or more. For most tradies working full-time — whether you're a sole trader sparky, a plumber with an ABN, or a builder running a small crew — you'll hit this threshold quickly.
Even if you're under $75K, you can voluntarily register. This lets you claim GST credits on tools, materials, ute expenses, and more.
How to Quote with GST
If you're GST-registered, every quote and invoice to customers must include GST. You have two options:
- Quote GST-inclusive — simpler for residential customers. "Kitchen reno: $22,000 (incl. GST)"
- Quote GST-exclusive + GST line — common for commercial jobs. Shows the breakdown clearly.
Tip: For residential work, always quote inclusive. Customers don't claim GST credits, so the total is what matters to them. For commercial/builder clients, quote exclusive — they'll want to see the GST separately for their own BAS.
What GST Credits Can Tradies Claim?
If you're registered, you can claim back GST on business purchases. Common tradie claims:
| Expense | GST Credit? | Notes |
|---|---|---|
| Tools & equipment | ✅ Yes | Power tools, hand tools, ladders, safety gear |
| Materials | ✅ Yes | Timber, pipe, wire, concrete, paint — from Bunnings, trade suppliers |
| Ute / van expenses | ✅ Yes* | Fuel, servicing, insurance. *Business-use portion only if mixed use |
| Work clothing | ✅ Yes | Hi-vis, steel caps, trade-specific uniforms. Not plain clothes. |
| Phone & internet | ✅ Yes* | *Business portion only |
| Insurance | ✅ Yes | Public liability, tool insurance, income protection |
| Subcontractor payments | ✅ Yes | If sub is GST-registered and provides a tax invoice |
| Training & licences | ✅ Yes | Trade licences, white card, CPD courses |
| Bunnings snag | ❌ No | Personal consumption 😄 |
Lodging BAS as a Tradie
Most tradies lodge BAS quarterly. You report:
- G1: Total sales (all your invoices for the quarter)
- 1A: GST on sales (GST you charged customers)
- 1B: GST on purchases (GST you paid on tools, materials, etc.)
If 1B > 1A, you get a refund. This is common early on when you're buying lots of tools and equipment.
Common Tradie GST Mistakes
- Not registering when over $75K — The ATO monitors this. Penalties apply.
- Quoting without GST then eating it — If registered, GST is on top. Don't absorb it.
- Claiming GST on non-business items — That new TV for your lounge room? No.
- Missing the BAS deadline — Quarterly BAS is due 28 days after quarter end. Late = penalties + interest.
- No tax invoices from suppliers — Cash jobs from the bloke at the markets? No invoice = no GST credit.
Tradie GST Quick Reference
Need More Help?
For full bookkeeping and BAS lodgement, consider Xero or MYOB — both have tradesperson-specific features including job tracking, quote-to-invoice, and automatic BAS preparation.