Private ruling: GST - projected turnover
Date of advice: 3 June 2026
Published: 17 August 2026

Ruling: Q1: Are supplies made by you under a PAYG voluntary agreement included in the calculation of the projected GST turnover under section 188-20 of the GST Act? | A1: Yes.

Relevant facts and circumstances: You are a sole trader. You have an Australian Business Number (ABN) and are registered for Goods and Services Tax (GST) You carry on an enterprise and in the course of that enterprise, you provide supplies in the indirect tax zone. You are engaged by Business as an independent contractor. Business has an ABN and is registered for GST. Business is not an associate to you. You invoice Business for supplies and receive payment as consideration for the supplies. You have a Voluntary PAYG Agreement (PAYG Agreement) with Business. The PAYG voluntary agreement complies with section 12-55 in Schedule 1 to the Taxation Administration Act 1953 (which provides for voluntary agreements to withhold). The agreement states that the section applies to payments made for the services you provide under the arrangement. You are also employed and receive salary and wages from other entities under separate employment arrangements.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-10 | A New Tax System (Goods and Services Tax) Act 1999 Division 40 | A New Tax System (Goods and Services Tax) Act 1999 section 72-5 | A New Tax System (Goods and Services Tax) Act 1999 section 113-5 | A New Tax System (Goods and Services Tax) Act 1999 section 188-20

Reasons for decision: Detailed Reasoning - Projected GST Turnover: An entity's GST turnover is relevant in determining whether the entity is required to register for GST. Projected GST turnover is defined in section 188-20 and is used to determine whether an entity meets or exceeds the relevant threshold tests. Section 188-20 relevantly states: (1) Your projected GST turnover at a time during a particular month is the sum of the values of all the supplies that you have made, or are likely to make, during that month and the next 11 months, other than: (a) supplies that are input taxed; or (b) supplies that are not for consideration (and are not taxable supplies under section 72-5 ); or (c) supplies that are not made in connection with an enterprise that you * carry on. Subsections 2 and 3 of section 188-20 are not relevant to your circumstances, as you are not a member of a GST group and you make supplies that are connected with the indirect tax zone. The term 'supplies' in section 188-20 refers to all supplies as defined in section 9-10. The supplies in question, relate to supplies you make, which are a supply of services listed in paragraph 9-10(2)(b). We must consider whether the supplies you make are excluded from subsection 188-20(1). Supplies that are input taxed The supply you make is not input taxed under Division 40 of the GST Act. Supplies that are not for consideration (and are not taxable supplies under section 72-5) You invoice the Business for your services and receive payment as consideration for those services. Section 72-5 concerns supplies made to associates, such as relatives. The Business is not an associate of you, therefore section 72-5 does not apply. Supplies that are not made in connection with an enterprise that you carry on The supplies are made in connection with the enterprise that you carry on. | Detailed Reasoning - Supplies made under a PAYG Voluntary Agreement: Section 113-5 states that a supply is not a taxable supply to the extent that it is made under a complying voluntary withholding arrangement. The supplies you make to the Business are made under a voluntary withholding arrangement. Although supplies made under a PAYG voluntary agreement may not be taxable supplies where the requirements of Division 113 are met, they are not excluded from the calculation of projected GST turnover. Supplies are only excluded from the calculation of projected GST turnover where they are: • input taxed supplies; • supplies that are not made for consideration; • supplies that are not made in the course or furtherance of an enterprise carried on by the entity Therefore, the supply of services you make under a PAYG voluntary agreement do not fall within any of the exclusions of section 188-20 and therefore included in working out projected GST turnover.