Reference Guide · Updated 20 May 2026
GST for Tutors, Australia
An Australian private tutor must register for GST once GST turnover reaches $75,000 in a rolling 12-month period; below that, registration is optional. This plain-English, ATO-grounded reference covers how GST works on tutoring invoices and the edge cases that trip people up, overseas students, group rates, school-contracted work, NDIS, and pre-paid packs.
Step 1, The Threshold
The $75,000 GST turnover threshold
GST registration in Australia is driven by GST turnover, not net profit. For tutors, the relevant rules are concise but easy to misread, particularly the projection rule and the 21-day window.
Mandatory registration
You must register for GST when your GST turnover reaches or exceeds $75,000 in any rolling 12-month period, current month plus the previous 11, or current month plus the next 11 (projected turnover).
Projected GST turnover
The sum of all taxable supplies you reasonably expect to make in the current month plus the next 11 months. If a new corporate-tutoring contract or a school engagement makes the next year obviously over $75k, the projection, not the historical figure, triggers registration.
21-day rule
If you cross the threshold mid-year, you have 21 days from the day you reasonably expected to exceed $75,000 to register. The ATO can backdate registration to that date and chase the GST you should have collected.
Voluntary registration
You can register below $75k. Pros: you can claim input tax credits on tutoring inputs (Zoom Pro, textbooks, OneBookPlus subscription) and look more established to corporate clients. Cons: every invoice carries 10% GST, you must lodge BAS, and parents paying out-of-pocket effectively pay 10% more.
12-month minimum stay
Once you register (voluntarily or compulsorily), you must stay registered for at least 12 months before you can cancel, even if your turnover drops below the threshold during that period.
Threshold figures and timing rules reflect current ATO guidance. Confirm with your tax agent for your specific situation.
Step 2, Is Tutoring GST-Taxable?
Yes, private tutoring is a taxable supply
Once you cross the $75k threshold, the default position is that tutoring is a taxable supply under section 9-5 of the A New Tax System (GST) Act 1999. There is a narrow education exception, but private 1:1 tutoring almost never qualifies.
The default, taxable supply
Section 9-5 makes a supply taxable if it is made for consideration, in the course of an enterprise, connected with Australia, and the supplier is registered or required to be registered. Standard private tutoring ticks every box. GST applies at 10% on the GST-inclusive price (1/11th of the total).
The narrow exception, Subdivision 38-C
Education courses delivered by an "education institution" (registered school, TAFE, university, RTO) are GST-free. The exception is read narrowly: a private tutor running coaching for school students is not an education institution, even though the content is academic.
ATO ID 2002/389
The ATO confirmed in ATO Interpretative Decision 2002/389 that private tuition for HSC / VCE candidates is a taxable supply, even though it directly supports the student's enrolled school course. The supplier (the tutor) is not the education provider, so Subdivision 38-C does not flow through.
When the exception can apply
If you are a registered school or RTO yourself and the tutoring is delivered as part of an accredited course you provide, or you sub-contract to a registered provider that on-supplies the tutoring as part of its GST-free course, the supply can be GST-free. These are minority cases; document them carefully.
Step 3, A Worked Example
How GST works on a typical tutor invoice
GST is 10% of the GST-exclusive price, which equals 1/11th of the GST-inclusive price. The maths is identical either way, choose how you quote, then be consistent.
| Line | GST-inclusive quote ($99/hr) | GST-exclusive quote ($90 + GST) |
|---|---|---|
| Headline rate | $99.00 per hour (GST inc.) | $90.00 per hour + GST |
| GST component | $9.00 (1/11th of $99) | $9.00 (10% of $90) |
| Total parent pays | $99.00 | $99.00 |
| Net to tutor | $90.00 | $90.00 |
| Goes to ATO at next BAS | $9.00 per hour | $9.00 per hour |
The 1/11th figure is the right one to memorise, once you have a GST-inclusive total, dividing by 11 gives the GST you owe. Set aside that amount on every payment received.
Step 4, Special Cases
The edge cases that trip up tutors
The general rule (tutoring is taxable, 10% GST applies) is easy. The exceptions are where tutors lose or overpay money. Each of these has its own evidence requirements.
Overseas online students (GST-free export)
- Legal basis
- Section 38-190 A New Tax System (GST) Act 1999
- How it works
- Tutoring delivered to a student physically outside Australia at the time of the session is generally a GST-free export of services. A Zoom lesson with a Year 11 student in Singapore is GST-free; the same lesson with a student visiting their grandparents in Sydney that week is taxable.
- Evidence to keep
- Keep evidence the recipient was offshore: signed declaration of student location, billing address, IP geolocation logs from your video platform, time-zone of session scheduled in student's local time. The onus is on you to prove the export.
- Practical notes
- If the parent paying the invoice is in Australia but the student is overseas at boarding school, ATO guidance still treats the supply as made to the recipient student, typically GST-free. Document the situation clearly on every invoice.
Group classes and small-group rates
- Legal basis
- Each student is a separate supply
- How it works
- A $40/student group of four is four separate supplies of $40, not one supply of $160. GST applies to each invoice separately. Total GST collected on the group ($16) is the same as treating it as one $160 supply, but the documentation must reflect per-student invoices.
- Evidence to keep
- Issue an invoice (or shared family invoice) per student/family with GST itemised at 1/11th. Group-rate discount logic should be applied to the GST-inclusive headline price.
- Practical notes
- If you bundle the group as 'a course' with a single payer (e.g. a school running a holiday programme), it becomes a single supply to that payer, see the school-contracted section below.
School-contracted tutoring (sub-contractor)
- Legal basis
- Subdivision 38-C A New Tax System (GST) Act 1999
- How it works
- Education courses delivered by a registered education provider (school, TAFE, university, RTO) are GST-free. If a registered school sub-contracts you to deliver a homework club or remedial maths programme as part of the school's own GST-free education supply, that supply may flow through to you.
- Evidence to keep
- Look at who the supply is made to. If the school is the recipient and on-supplies the tutoring as part of its GST-free course, you may be making a GST-free supply to the school. The school should be able to confirm this in writing and reference the curriculum framework the programme sits within.
- Practical notes
- In practice, most private tutoring contracted by schools is still taxable, it has to actually be part of the school's curriculum-delivered course, not just held on school premises. ATO ID 2002/389 confirmed standalone HSC/VCE coaching is a taxable supply even when delivered to a school student.
Selling tutoring packs and pre-paid bundles
- Legal basis
- Point-of-supply / attribution rules
- How it works
- When a parent pays $990 up-front for a 10-session pack, GST attributes at the time of invoice and receipt, not session-by-session. You collect and remit $90 GST on the BAS for the quarter the payment lands in, regardless of when the sessions are delivered.
- Evidence to keep
- Tax invoice must show the full pack value, GST component, and (helpfully) a session-count breakdown. Refunds for unused sessions reduce GST in the period the refund is issued via an adjustment note.
- Practical notes
- If you account for GST on a cash basis (allowed for small tutoring businesses), GST attributes when you receive payment. If you use accruals, it attributes on issue of the invoice. Stay consistent.
NDIS tutoring (Capacity Building)
- Legal basis
- Section 38-38 A New Tax System (GST) Act 1999
- How it works
- Tutoring delivered to NDIS participants under a 'Capacity Building, Improved Daily Living' or similar plan-funded item may be GST-free as a disability support service, where the supply is to a participant with an NDIS plan that funds the relevant support.
- Evidence to keep
- You need the participant's plan reference, the funded support item code being billed against, and a written agreement showing the supply is one of the GST-free supports listed in the Minister's determination.
- Practical notes
- Not automatic, the item code matters. Standard educational tuition unrelated to a disability support is still taxable even if the family also has NDIS funding for other supports.
Cancellation and no-show fees
- Legal basis
- Treated as a separate taxable supply
- How it works
- If you charge a $30 late-cancel or no-show fee and you're GST-registered, that fee carries GST. It is a separate supply of 'agreeing to keep the slot available' rather than the tutoring service itself.
- Evidence to keep
- Issue a tax invoice for the cancellation fee with GST shown. Don't quietly add it as a line on the next session's invoice without breaking it out.
- Practical notes
- Genuine refunds of fees already paid, adjusted via an adjustment note, reducing GST in the period the refund is given. Do not net cancellation fees against future invoices without documentation.
Step 5, BAS Frequency
How often a tutor lodges BAS
For nearly every Australian tutor, BAS is a quarterly event. The variations (annual, monthly, instalments) apply only in specific situations.
Quarterly (default)
Most tutors lodge quarterly. Due dates: Q1 (Jul to Sep) 28 Oct, Q2 (Oct to Dec) 28 Feb, Q3 (Jan to Mar) 28 Apr, Q4 (Apr to Jun) 28 Jul. Lodging through a registered tax/BAS agent gives you an extra 2 to 4 weeks for most quarters.
Annual GST option
Available only to voluntary registrants whose turnover is under $75k. One BAS per year (28 Feb following the financial year end). Useful for tutors who registered voluntarily for ITCs and don't want quarterly admin.
Monthly
Mandatory only if your GST turnover is $20 million or more, essentially never for a tutor. You can opt in to monthly if you prefer faster ITC refunds, but it triples the admin.
Instalment option
Eligible small businesses may pay GST in quarterly instalments based on an ATO-calculated figure, then reconcile annually. Simplifies cash flow but doesn't change your underlying obligation.
Cash vs accrual accounting
Tutors with turnover under $10m can elect cash accounting, GST attributes when paid, not when invoiced. This is the simpler default for tutors taking payment up-front or via online checkout.
Records and retention
Tax invoices, adjustment notes, BAS workings and bank reconciliations must be kept for at least 5 years from the date the transaction was completed. Digital records (e.g. OneBookPlus invoices) satisfy the requirement.
Step 6, Input Tax Credits
What tutors can claim back
Once registered, you can claim the GST component of business expenses from GST-registered suppliers as input tax credits (ITCs), reducing the net GST you remit each BAS.
Video and collaboration tools
Zoom Pro, Google Workspace, Microsoft Teams, Webex, used to deliver online sessions. Claim the GST component (1/11th of the GST-inclusive invoice) where the provider is GST-registered in Australia and issues a tax invoice.
Teaching resources
Textbooks, past papers, online subject subscriptions (Mathspace, Education Perfect, Atomi, Edrolo), printed workbooks. Direct cost of supplying tutoring, fully claimable.
Platform and marketplace fees
Tutoring platform commission, Stripe/Square processing fees on tutoring payments, online booking and scheduling tools. Where the platform is GST-registered, ITCs are available on the GST portion of the fee.
Software and admin
OneBookPlus subscription, accounting software (Xero, MYOB), CRM, calendar tools, password managers, ABN registration fees, website hosting, domain renewal.
Home office (apportioned)
GST-inclusive utilities, internet, phone, claimable only for the business-use portion, calculated by floor area, time-use, or the ATO's fixed-rate method. Keep a 4-week representative diary.
Travel between sessions
Travel from one tutoring location to another is deductible and ITCs on fuel/tolls can be claimed (proportional to business use). Home to first session and last session to home is normal commuting, not deductible.
Professional development
Subject-matter courses, teaching CPD, conferences directly relevant to your tutoring practice. Personal degrees and study not connected to your current tutoring income are generally not deductible.
What you cannot claim
Private study, private vehicle running costs (unless logged for business use), groceries or coffees with students unless documented as a legitimate working expense, GST on supplies from non-GST-registered providers (there is no GST to claim).
Step 7, Common Mistakes
Where tutors go wrong on GST
These are the patterns ATO compliance and tax-agent reviews flag most often for tutoring businesses.
Charging 'plus GST' without being registered
Adding GST to an invoice when you are not registered is unlawful and the ATO can require you to refund the amount or remit it as if it were GST. Either register, or don't add GST.
Missing the threshold crossing
The most common audit trigger for tutors. If a string of corporate or group contracts pushes you over $75k mid-year and you don't register within 21 days, the ATO can backdate registration and demand the GST you should have collected, out of your own pocket.
Treating overseas online tutoring as taxable
Many tutors collect GST on offshore students unnecessarily. If the student is overseas at session time and you have evidence, it's a GST-free export under s38-190. Don't pay GST you don't owe.
Forgetting input tax credits
Voluntarily registered tutors regularly forget to claim ITCs on Zoom, Google Workspace, textbook subscriptions, and OneBookPlus, that's real cash left on the table every quarter.
Mixing personal and business expenses
Claiming home internet at 100% when actual business use is 40% is the classic mistake. The ATO expects a reasonable, documented apportionment, diaries, floor-area calculations, fixed-rate methods.
No adjustment notes on refunds
Refunding a parent for unused sessions without issuing an adjustment note leaves your BAS overstated. Adjustment notes reduce GST collected in the period the refund is paid.
Practical tips for tutors approaching $75k
Track turnover monthly, not annually
The $75k test is a rolling 12-month view. Check your turnover at the end of every month against the previous 11, your accounting software (Xero, MYOB, OneBookPlus) can show this in two clicks. Don't wait until July tax time to discover you crossed the threshold in February.
Set aside 1/11th of every payment
The GST you collect is never yours, it's held in trust for the ATO. Move 1/11th (roughly 9.1%) of every GST-inclusive payment into a separate bank account on receipt. When the BAS lands, the cash is already there and you avoid the most common cash-flow crisis of newly registered tutors.
Use GST-tagged invoicing software
Invoices need to clearly show your ABN, the GST component, and the words "tax invoice" for amounts over $82.50, whether you invoice a parent, a school or an agency. OneBookPlus, Xero and MYOB all tag GST on every line and generate the BAS summary automatically, which removes the manual reconciliation that creates errors.
Get an accountant for the crossing
Crossing the threshold is one of the higher audit-risk moments for a small tutoring business, partly because it's easy to get wrong, partly because the ATO actively monitors near-threshold turnover. A few hundred dollars on a tax agent at registration time is cheap insurance against backdated GST claims.
Frequently Asked Questions
When must I register for GST as a tutor?
You must register for GST as soon as your GST turnover reaches $75,000 in a rolling 12-month period, either looking back at the last 12 months or projecting the current month plus the next 11. If you reasonably expect to cross $75k, you have 21 days from that point to register. Below $75k, registration is voluntary. Once you register, you must stay registered for at least 12 months.
Is online tutoring to overseas students GST-free?
Generally yes. Under section 38-190 of the A New Tax System (GST) Act 1999, services consumed outside Australia by a recipient who is offshore at the time of the supply are GST-free exports. A Zoom lesson with a student physically in Singapore, Hong Kong, the UK or anywhere outside Australia is GST-free. Keep documentation, signed location declaration, billing address, video-platform geolocation, to prove the export character. If the student is in Australia (e.g. visiting family) at session time, that session is taxable.
Do I charge GST on session packs?
Yes, if you're GST-registered. The GST attributes when the invoice is issued (accruals) or when payment is received (cash basis), not session by session. A $990 ten-pack collects $90 of GST that goes on the BAS for that period. If a parent later cancels and you refund unused sessions, issue an adjustment note to reduce the GST in the refund period, don't quietly net it off.
Should I voluntarily register for GST under $75k?
It depends on your client mix and inputs. Voluntary registration lets you claim input tax credits on tutoring tools (Zoom, Google Workspace, OneBookPlus, textbooks, platform fees), useful if those costs are material. The downside is every invoice carries 10% GST, which parents paying out-of-pocket effectively absorb, and you must lodge BAS at least annually. If most of your clients are corporate or school accounts that claim GST back themselves, voluntary registration is usually neutral-to-positive. If your clients are individual families and your input costs are small, it's usually not worth it.
How often do I lodge BAS as a tutor?
Quarterly is the default. Q1 (Jul to Sep) is due 28 October, Q2 (Oct to Dec) due 28 February, Q3 (Jan to Mar) due 28 April, Q4 (Apr to Jun) due 28 July. Lodging through a registered tax or BAS agent gives you an extra 2 to 4 weeks on most quarters. If you voluntarily registered below $75k, you can choose annual GST reporting (one BAS per year). Monthly lodgement is mandatory only for businesses turning over $20m+, essentially never for a tutor.
What tutoring expenses can I claim back as input tax credits?
If you're GST-registered, you can claim the GST component (1/11th of the GST-inclusive price) of any business expense from a GST-registered supplier with a valid tax invoice. Common ITCs for tutors: Zoom Pro, Google Workspace or Microsoft Teams, textbook and online subject subscriptions, OneBookPlus and accounting software, tutoring platform commission and payment processing fees, the business-use portion of home internet and phone, fuel and tolls for travel between session locations, and PD relevant to tutoring. You cannot claim ITCs on personal study, private vehicle costs, or supplies from non-GST-registered providers (no GST was charged).
Related tutor guides
- Read the NDIS tutoring provider guide, how GST-free treatment applies to NDIS-funded sessions under s38-38.
- Read the session pack billing & cancellation guide, when GST attributes on pre-paid packs and how refunds adjust the BAS.
- See the HSC, VCE & ATAR tutor pricing benchmarks, set rates before deciding whether to register for GST.
Run your tutoring business, and your GST, in one place
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Reviewed by Bishal Shrestha