GST and registration requirements for taxi operators

Is the entity, a taxi operator that supplies taxi travel, required to be registered for goods and services tax (GST) under section 144-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), even though its annual turnover is below the registration turnover threshold?

Yes, the entity is required to be registered for GST under section 144-5 of the GST Act, even though its annual turnover is below the registration turnover threshold.

The entity is a taxi operator that supplies taxi travel. The entity does not operate a taxi as an employee. The entity is not registered for GST.

The entity's annual turnover is below the registration turnover threshold.

Division 144 of the GST Act contains a special registration rule for suppliers of taxi travel. It provides that suppliers of taxi travel are required to be registered regardless of their annual turnover.

Under section 144-5 of the GST Act, an entity is required to be registered if, in carrying on an enterprise, it supplies taxi travel. It does not matter whether its annual turnover meets the registration turnover threshold or in carrying on an enterprise, it makes other supplies besides supplies of taxi travel. This section has effect despite section 23-5 of the GST Act, which provides that an entity is required to be registered if it is carrying on an enterprise and its annual turnover meets the registration turnover threshold (subsection 144-5(3) of the GST Act).

Accordingly, the entity is required to be registered for GST under section 144-5 of GST Act, even though its annual turnover is below the registration turnover threshold. [Note: Subsection 23-15(1) of the GST Act provides that the registration turnover threshold is $50 000, unless the entity is a non-profit body].