How to Calculate GST as a Musician in Australia
If your music income exceeds $75,000 per year, GST registration is mandatory. Here's how it works and what it means for your invoices.
If you earn more than $75,000 per year from your music (or any combination of self-employment), you're required to register for GST in Australia. But even below that threshold, understanding how GST works is something every working musician should have a handle on.
How GST Works for Gig Income
GST is 10% of the price of your service, collected on behalf of the ATO. If you're registered, a $1,000 gig fee means $909 is your income and $91 belongs to the ATO. Alternatively, if the client pays $1,000 plus GST, your total invoice is $1,100 and you remit $100 at BAS time.
The key thing to understand: if you're registered for GST, the GST component of every invoice is not your money. It's collected on behalf of the government and paid via your Business Activity Statement — usually quarterly.
What This Means for Your Invoices
Every invoice you issue needs to show the GST component clearly. "$1,000 + GST ($100) = $1,100 total" is the standard format. Your ABN must appear on any tax invoice over $82.50 (GST-inclusive).
If you're not registered for GST, you cannot charge it and should not include it on invoices. This is where many musicians get caught — either charging GST they're not registered to collect, or failing to register when they should have.
How Dashplan Handles GST
Dashplan's Gig Manager includes GST calculation in every gig entry. Mark a gig as GST-applicable and the system splits out the GST component and includes it correctly on the generated invoice. If you're not sure whether GST applies to your situation, speak with an accountant — but once you know, Dashplan handles the maths.
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