GST can be confusing. This guide breaks it down specifically for Australian resellers in plain English.
GST (Goods and Services Tax) is a 10% tax on most goods, services, and other items sold or consumed in Australia. As a reseller, GST applies to the items you sell and many of the services you buy (like platform fees and postage). The key thing to understand is that GST is separate from income tax — it's a consumption tax that you collect on behalf of the government.
You must register for GST when your annual turnover (gross sales, not profit) reaches or is expected to reach $75,000. This is a rolling 12-month figure, not aligned to the financial year. If you have a particularly strong few months and your projected annual turnover would exceed $75k, you may need to register even if you haven't hit the threshold yet.
Importantly, turnover includes all your business income — eBay, Depop, Shopify, Facebook Marketplace, and any other platform combined. You can't split turnover across platforms to stay under the threshold.
You can voluntarily register for GST even if your turnover is below $75,000. Why would you? Because registration allows you to claim GST credits on your business purchases. If you're paying significant eBay fees, postage costs, and packaging expenses, the GST credits can be valuable. The trade-off is that you must charge GST on your sales (increasing your prices by 10% or reducing your margin) and you must lodge BAS returns.
For resellers with turnover between $40-75k, voluntary registration is worth discussing with an accountant. Below $40k, the admin burden usually outweighs the benefit.
Once registered, your sale prices should include GST. On platforms like eBay and Shopify, you can configure your tax settings to show GST-inclusive pricing. The GST component of each sale is not your money — you're collecting it on behalf of the ATO and must remit it when you lodge your BAS.
GST credits (input tax credits) allow you to claim back the GST you've paid on business expenses. Platform fees, postage, packaging, accounting software, and many other business costs include GST. You claim these credits on your BAS, which offsets the GST you've collected on sales. The net amount is what you pay to (or receive from) the ATO.
Most small businesses lodge BAS quarterly. This means every three months you calculate total GST collected on sales, subtract total GST credits on purchases, and pay the difference to the ATO (or receive a refund if credits exceed collections). Good bookkeeping practices make BAS time straightforward. Without them, it becomes a quarterly headache. For the full picture on reseller tax obligations, see our comprehensive guide.
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