If you're an Australian salon owner, GST is a part of daily life. Every time you sell a shampoo or book a color, you're essentially acting as a tax collector for the government. But in 2026, many salon owners are still confused by the nuances of what is—and isn't—taxable.
This guide breaks down the essential GST rules so you can keep your salon profitable and avoid a surprise bill from the ATO during your next BAS.
The Australian tax rule is simple: if your salon's gross business turnover is $75,000 or more in a 12-month period, you must register for GST within 21 days.
💡 Note: If your salon is new but on track to hit $7,000 in your first month, you're projected to hit $84k/year. You must register immediately.
Almost everything in a salon is subject to the 10% GST. For example, if you charge $110 for a cut and color, $10 is GST and $100 is your revenue.
One of the biggest benefits of being GST-registered is the ability to claim back the GST you pay on your business inputs. For example:
If you are GST-registered and you rent a chair to an independent stylist, you must charge them GST on the rent. However, if the independent stylist is not GST-registered (because they make less than $75k/year), they cannot claim that GST back, and they cannot charge GST to their own clients. This is a common point of confusion for dual-model salons.
Our salon-focused accountants help thousands of stylists manage their GST compliance. Let us review your income and ensure you're registered at the perfect time.
Talk to a Salon GST Expert