ABN, GST, and BAS: A Pet Groomer's Guide to Australian Tax Basics
Heads up — this is general information for Australian pet groomers, not financial or legal advice. Rules change, your situation is unique, and the difference between getting it right and getting it wrong can be expensive. Use this as a starting map, then talk to a registered tax agent or accountant before making decisions. Information current as of mid-2026.
Most groomers we know didn't get into this work to spend their evenings reading ATO guidance notes. But a few hours getting the basics right early on saves a lot of pain when BAS time rolls around.
Here's the simplest version of what you actually need to know.
The starter pack: ABN and your business structure
If you're charging clients for grooming services in Australia, you almost certainly need an Australian Business Number (ABN). An ABN is free, takes about 15 minutes to apply for at the Australian Business Register, and is the unique number that identifies your business for tax and government purposes.
The most common starting structure for a solo groomer is sole trader. You operate under your own name (or a registered business name), your business income is taxed as part of your personal income, and you're personally liable for any debts the business takes on. It's the cheapest and easiest to set up.
A few cases where you might consider a different structure:
- Partnership — if you and another groomer split the business 50/50 from day one.
- Company (Pty Ltd) — better legal separation between your personal assets and the business, but more compliance and ongoing cost. Most groomers don't need this until they're earning solidly into six figures and either employing staff or taking on real liability (mobile vehicles, leased premises, etc.).
- Trust — usually overkill unless you have specific asset protection or family income reasons. Always talk to an accountant before going down this path.
For 90% of new groomers: sole trader, ABN, registered business name, done.
When to register for GST
The threshold is the number to remember: $75,000 in gross business income in any rolling 12-month period. Once you cross it — or once you reasonably expect to — you have 21 days to register for GST.
That income figure is before expenses. It's the total amount you've invoiced and received from grooming services, not your take-home.
Below the threshold, you can voluntarily register for GST if you want to. The trade-off:
- Voluntary GST registration up sides: you can claim GST credits on business purchases (clippers, dryer, vehicle servicing if mobile, etc.). For some equipment-heavy operations, the credits add up.
- Voluntary GST registration down sides: you have to add 10% GST to every invoice, which either eats into your margin or pushes your prices up. You also have to lodge BAS quarterly.
For most solo groomers under the threshold, the admin overhead of GST isn't worth it until you're getting close to $75k anyway. Once you're past the threshold, you don't have a choice — register or face penalties.
What you can actually claim
The general principle: if you'd reasonably only spend the money because of your business, it's probably deductible. If you'd spend it anyway, it's probably not.
Common deductions for a grooming business include:
- Tools and equipment. Clippers, scissors, dryers, brushes, tables, tubs, kennels. Items under $300 are usually immediately deductible; bigger items get depreciated over their useful life (or instantly written off under instant asset write-off rules if they apply to your year).
- Consumables. Shampoo, conditioner, cologne, bows, treats, towels, cleaning products.
- Vehicle expenses (mobile groomers especially). Fuel, registration, insurance, servicing, depreciation. Two methods: the cents-per-kilometre method (simpler, capped) or the logbook method (more accurate, more paperwork — usually wins if the van is heavily used for business).
- Home office costs if you run admin from home. Either a fixed rate per hour or actual expenses.
- Insurance. Public liability, professional indemnity, tools-and-equipment cover.
- Professional development. Grooming courses, breed seminars, conference tickets.
- Software and subscriptions. Booking software, accounting software, design tools, mobile plan portion used for work.
- Marketing. Instagram ads, business cards, signage, photography, your website.
- Bank and merchant fees. Stripe processing fees, Square fees, bank account fees on the business account.
Keep every receipt. The ATO's general rule is five years, but in practice, anything you can digitise (Xero, MYOB, Hnry, even just a Google Drive folder with photographed receipts) is far easier than a shoebox.
BAS quarters: dates, lodgement, and not panicking
If you're GST-registered, you'll lodge a Business Activity Statement (BAS) quarterly. The standard quarters and their due dates:
- Q1 (Jul–Sep) — due 28 October
- Q2 (Oct–Dec) — due 28 February (yes, you get extra time over the Christmas period)
- Q3 (Jan–Mar) — due 28 April
- Q4 (Apr–Jun) — due 28 July
If you lodge through a registered BAS or tax agent, you usually get an extra month on each due date. That alone is often worth the agent's fee.
The BAS reports your GST collected, GST paid on business purchases, PAYG withholding if you have employees, and PAYG instalments (the ATO's pre-payment system for your income tax). The net amount is either paid to or refunded from the ATO.
Two habits that make BAS painless:
- Open a separate bank account for the business and sweep the GST portion (roughly 1/11th of each gross invoice) into a sub-account or savings as you receive it. By BAS time, the money is already set aside.
- Reconcile weekly, not quarterly. Fifteen minutes a week beats a six-hour panic the night before lodgement.
Mobile groomers: a quick word on vehicles
If you're running a grooming van or even doing house calls in your personal car, the vehicle is one of your biggest deductions and one of the easiest things to get wrong.
The logbook method requires you to keep a logbook for 12 continuous weeks every five years, recording every trip and whether it was business or private. The percentage of business use you establish in that window can then be applied to all your vehicle expenses going forward.
If you have a fully kitted-out grooming van that's only used for work, the business-use percentage might be 100%. If it's a dual-use vehicle (your van also picks up the kids on weekends), it'll be lower — but accurate records protect you in any audit.
Insurance — not strictly tax, but you'll thank me
Public liability cover is non-negotiable. A nip, a slip, a vaccinated dog reacting badly, a client's antique rug catching shampoo — incidents happen. Premiums for a solo groomer in Australia typically sit somewhere between $400 and $900 a year for $5–20 million in cover. It's a deductible expense and it sleeps you better.
Tools-and-equipment cover protects your clippers, dryers, and scissors against theft and damage. If you're mobile, vehicle insurance with a commercial endorsement is essential — a standard personal policy may not cover you if there's a claim during a working trip.
Tools and people who help
If you take one thing from this post, let it be: get an accountant or BAS agent before your first BAS, not after. A good one for a sole trader grooming business costs roughly $600–$1,500 a year and routinely saves you more than that in deductions you'd have missed.
Useful tools:
- Xero, MYOB, or Hnry for accounting. Hnry is specifically designed for sole traders and handles GST and tax automatically — appealing if you hate admin.
- Receipt Bank, Dext, or just your phone camera + a labelled Google Drive folder for receipts.
- The ATO app for tracking deductions on the go.
- business.gov.au for the official rundown of every step.
The takeaway
Tax doesn't have to be the part of running your business that you dread. Get the structure right early, set aside the GST as you go, lodge through a registered agent, and use one piece of accounting software consistently. You'll spend less time on it, miss fewer deductions, and stop losing sleep before each quarter.
And again — none of this replaces real, personalised advice from a registered tax agent or accountant who knows your specific situation. This guide is a starting point, not a substitute.
Already using accounting software but still juggling separate tools for bookings, payments, and client records? My Pet Groomer pulls all of that into one platform built for Australian groomers. See pricing →