Should You Register for GST Early?

Running a small business often feels like sailing into new waters — and one of the first questions that comes up is whether to register for GST before you have to.

The rule is simple: if your annual turnover is under $75,000, you’re not required to register. But sometimes, choosing to register early can give your business an advantage. The trick is knowing whether it’s right for you.

Why Some Businesses Register Early

⚓ Credibility at the docks

 To bigger businesses and government clients, GST registration signals you’re established and reliable. It can smooth the way when bidding for larger contracts.

⚓ Claiming back GST

 Every time you buy supplies, software, or equipment, you’re paying GST. Registering allows you to claim it back on your BAS. If you’re investing heavily at the start, that can lighten the load.

⚓ A smoother voyage

 If you’re close to the threshold, it may be simpler to get set up now instead of rushing once your turnover tips over $75,000. You’ll already have the systems in place.

Why Others Prefer to Wait

⚓ Extra admin

 Once registered, you’ll need to lodge regular Business Activity Statements (BAS). That’s another deadline to keep track of — unless you hand the wheel to a bookkeeper.

⚓ Impact on pricing

 If you serve mostly individuals, adding 10% GST can make your services feel less competitive. On the other hand, if you work mainly with GST-registered businesses, this usually isn’t an issue.

⚓ No real benefit if you’re staying small

 If you know your turnover will remain comfortably under $75,000 for a while, early registration can just add work without much reward.

When Early Registration Makes Sense

You’re scaling quickly or are close to the threshold.

Your clients are mostly GST-registered businesses.

You’re making significant purchases and want to claim back the GST.

You want the professional weight that comes with being GST-registered.

When It’s Better to Wait

You’re comfortably under the threshold, with no rapid growth expected.

Your clients are mostly individuals.

You’d rather keep the admin simple while you establish yourself.

The Takeaway

There’s no single right answer. For some, registering early is a smart step toward growth. For others, it’s an unnecessary anchor slowing you down.

At Harbourlight Ledgers, we help business owners weigh up these decisions with clarity — so you can steer with confidence, whether you choose to register now or later.