Understanding and Claiming GST for Tradies
13 October 2026 · 6 min read · By Heaney Accounting
What is GST and why does it matter?
GST is a broad-based tax of 10% on most goods and services sold in Australia. If your trade business earns $75,000 or more annually, you must register for GST. Even if you earn less, registering can be beneficial if you have high startup costs.
- Register for GST through the ATO website as soon as you hit the threshold.
- Add 10% GST to all your invoices for clients.
- Set aside the collected GST in a separate high-interest savings account.
- Track all GST credits on your business purchases to reduce your final payment.
- Lodge your BAS on time to avoid penalties and interest charges.
Pro Tip: Never spend your collected GST on business overheads or personal expenses. It is money you are holding for the ATO, not your own.
When you purchase tools, materials, or fuel for your trade, you are often paying GST yourself. You can claim these as 'input tax credits' on your BAS, which means you subtract the GST you paid from the GST you collected from clients, leaving only the difference to be paid to the tax office.
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