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GST on quotes: the basics for Australian sole traders

GST on a quote is easy to mix up with GST on a tax invoice, and both are easy to mix up with whether you must be registered at all. This page summarises official ATO and ACCC points in plain English so you can see the shape of the rules. It is not advice about your registration, your BAS, or a particular job.

When most businesses must register

The ATO says you must register for GST when your business or enterprise has a GST turnover of A$75,000 or more. GST turnover is gross business income, not profit, after subtracting GST included in sales and some other amounts the ATO lists. You also need to register if you start a business and expect to reach that threshold in the first year. Non-profit organisations have a A$150,000 threshold. You must register regardless of turnover if you provide taxi or limousine travel for passengers, including ride-sourcing, or if you want to claim fuel tax credits. If you do not fall into those categories, registration is optional. If you choose to register, you generally must stay registered for at least 12 months.

You reach the threshold if either your current GST turnover (this month plus the previous 11 months) is at or above the limit, or your projected GST turnover (this month plus the next 11 months) is likely to be. The ATO asks you to check each month if you are not registered. Once you are required to register, you need to do so within 21 days. You need an Australian business number (ABN) before you register. The official page is Registering for GST, last updated by the ATO on 14 September 2026 at the time this guide was written.

If you should have registered and did not, the ATO says you may have to pay GST on sales since the date you were required to register, even if you did not include GST in those prices, and you may also face penalties and interest. That is why guessing, or leaving GST off a quote “to stay competitive” while you are over the threshold, is a risk to discuss with a tax agent — not something this website can settle for you.

The 10% and the one-eleventh

For a taxable sale, GST is 10% of the GST-exclusive price. If a quote shows a GST-exclusive amount of A$1,020, GST is A$102 and the inclusive total is A$1,122. Working backwards, GST is one-eleventh of a GST-inclusive price: A$1,122 ÷ 11 = A$102. Those dollars match the fictional sample on this website. They are not a recommended charge-out.

If you are not registered and not required to be, you should not add that 10% as GST. You also should not describe your document as a tax invoice. The ATO’s guidance on setting up business invoices says that if you are registered for GST your invoices should be called “tax invoice,” and if you are not registered you must issue standard invoices and should not include those words.

Quotes, invoices, and tax invoices

A quote proposes a price. A client can accept it, negotiate, or walk away. It is not the same document as a tax invoice. When you bill a taxable sale, a tax invoice is the record that lets a GST-registered customer claim an input tax credit, subject to the ATO’s rules. The ATO’s tax invoices page lists what the document must make clear, including that it is intended to be a tax invoice, your identity and ABN, the date, a description of what was sold (including quantity where relevant) and the price, the GST amount, and the extent to which each sale is taxable. For sales under A$1,000, GST can be shown separately or, if it is exactly one-eleventh of the total, with the words “Total price includes GST.” For sales of A$1,000 or more, the buyer’s identity or ABN is also needed. If a customer asks for a tax invoice, you must generally provide one within 28 days, unless the sale is A$82.50 or less including GST.

How this shows up on a quote

Say clearly whether your figures are GST-inclusive or GST-exclusive. If you show parts, also show the total the client will pay. The ACCC’s price display rules require a single total price, including GST and other unavoidable charges, when you display prices to consumers. The same ACCC page says that prices displayed only to other businesses do not have to include GST in the total. Either way, a line such as “plus GST” without a total can leave a household customer unsure what to pay. For more on writing the quote itself, see how to quote a job in Australia.

What this website does not do

The Quote & Break-Even Pack has an optional 10% GST line that starts off. Turning it on multiplies your GST-exclusive quote by 10% for display. That switch does not register you for GST, does not file a BAS, and does not decide whether your sale is taxable, GST-free, or input-taxed. Some supplies are treated differently; this page does not try to classify them.

Read the ATO pages linked above for the current wording, try the free markup vs margin calculator if you are still setting the exclusive price, or download the free preview. If you want the workbook, it is A$29 one-time. Nothing here is a claim about earnings, and nothing here replaces advice from the ATO or a registered agent.