GST is one of those things that sits at the edge of every working musician's awareness in Australia — something you know you probably need to understand, but that somehow never quite rises to the top of the to-do list until it absolutely has to.
Let us fix that.
What is GST, and does it apply to you?
GST — Goods and Services Tax — is a 10% tax on most goods and services sold in Australia. If you are a musician earning money from gigs, sessions, teaching, or any other music-related work, there is a threshold to know.
If your music income and any other business income you earn reaches $75,000 in a financial year, you are required to register for GST.
Below that threshold, registration is optional. You can register voluntarily if it makes sense for your situation.
It is worth noting that $75,000 is the threshold for annual turnover, not profit. It is the total amount that comes in, before expenses.
What happens when you register?
Once you are registered for GST, two things change.
First, you need to add 10% GST to your invoices. If you were charging $500 for a gig, you now charge $550 — $500 for your services plus $50 GST.
Second, you need to lodge Business Activity Statements with the ATO, usually quarterly. The BAS is where you report how much GST you collected from clients, minus any GST you paid on business purchases. The difference is what you pay to the ATO — or if you spent more on GST-inclusive purchases than you collected, you may receive a refund.
In practice, most musicians do not end up paying as much as they fear. If you have been buying gear, paying for software, covering studio hire — all of those have GST on them, and you can claim it back.
Should you register voluntarily if you are under $75,000?
Maybe. It is worth thinking through.
The argument for registering voluntarily: you can claim back GST on all your business purchases — gear, strings, software, travel expenses, recording costs. If you are spending significant money on your music career, those credits add up.
The argument against: once you are registered, you need to add GST to all your invoices and lodge BAS returns regularly. That is more admin, and it can make your services appear more expensive to clients who are not registered for GST themselves.
For most musicians early in their career, staying unregistered until the threshold is the simpler path. If you are approaching $75,000 or spending heavily on your career, talk to an accountant before you decide.
Do you need an ABN?
Yes — if you are earning money from music as a business activity, you need an Australian Business Number. This is separate from GST registration, and you can have an ABN without being registered for GST.
Your ABN goes on every invoice you send. Without it, clients are required by law to withhold 47% of your payment for tax — which is an unpleasant surprise for everyone involved.
Registering for an ABN is free and straightforward via the Australian Business Register website.
The practical stuff: what you actually need to do
- –Get an ABN if you do not have one — free, online, takes about ten minutes
- –Track your income from all music-related sources throughout the year
- –Keep receipts for all business expenses — these reduce your taxable income
- –Register for GST when your turnover reaches or is likely to reach $75,000
- –Lodge BAS returns quarterly once you are registered
- –Lodge your annual tax return including all music income
If you are using an invoicing app that supports Australian GST — with ABN fields and GST-inclusive invoice formatting built in — much of this is handled automatically. SessionsNV has GST support built in, including BAS-ready expense reports, so the numbers are already organised when it is time to report.
Tax is never the fun part. But GST, once you understand the basic mechanics, is a lot less complicated than it initially seems. Know your threshold, get your ABN, keep your records — and if you are approaching the point where it gets complex, get an accountant. That is what they are for.