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GST for hairdressers and beauty businesses: what to charge

Whether you charge GST depends on whether you are registered, and whether you must register depends on your turnover. Once you are, one-eleventh of the price of every taxable sale is GST.

Facts checked . Prices change; the sources are listed at the end.

Do you need to register?

According to the ATO, you must register for GST when your business’s GST turnover is $75,000 or more. The ATO tests either:

  • your current GST turnover: this month and the previous 11 months, or
  • your projected GST turnover: this month and the next 11 months.

If your current turnover is over the threshold but the ATO is satisfied your projected turnover will be below it, you don’t have to register.

Once you pass the threshold, you have 21 days to register. Below it, registering is optional. If you choose to register, you generally stay registered for at least 12 months. Some owners register early so they can claim GST credits on fit-out and equipment; others stay unregistered to keep prices simple. Your accountant can tell you which suits you.

Are your services taxable?

Hair, beauty and relaxation services are generally taxable sales, so a registered business includes GST in their price. Some health services are GST-free under specific conditions. If you think any of yours might be, check with the ATO or your accountant before you set prices.

Show prices with GST included

The ACCC expects prices shown to consumers to be the total price, including GST. Adding “+10% GST” at the till, after a client has seen a lower price, risks misleading them. Put the GST-inclusive price on your menu, website and booking page.

Working out the GST in a price

GST is 10%, so in a price that already includes it, the GST is one-eleventh.

  • $110 cut and blow-dry: $110 ÷ 11 = $10 GST, and $100 is yours.
  • $88 brow and tint: $88 ÷ 11 = $8 GST.
  • $165 massage: $165 ÷ 11 = $15 GST.

If you’re raising prices after registering, work backwards: the new price × 10 ÷ 11 is what you keep.

The tricky bits

How GST applies to deposits, kept deposits, gift vouchers and rent-a-chair arrangements has its own rules. The ATO covers each, and they are worth a ten-minute conversation with your accountant before you set your policies.

Preen and GST

Built in Australia. Priced in AUD. GST done properly. Every Preen plan price already includes GST. If you’re just starting out, the starting-a-business checklist puts GST in order with the other first steps.

Questions people ask

Do hairdressers charge GST?
Only if they are registered for GST. A business must register once its GST turnover reaches $75,000 a year, or is expected to. Below that, registering is optional, and a business that chooses to register generally stays registered for at least 12 months.
How do I work out the GST in a GST-inclusive price?
Divide the price by 11. A $110 service includes $10 of GST; an $88 service includes $8.
If I'm not registered, can I add GST to my prices?
No. Only a business registered for GST charges GST.

Sources

General information from the ATO and ACCC, checked 30 September 2026. Not tax, legal or financial advice. Your accountant or the ATO can confirm how GST applies to your business.

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