---
title: "How Shopify works in Australia for sellers"
description: "Shopify handles AUD checkout and payments for Australian sellers, but GST registration at A$75,000 and ABN compliance stay with you. Here's the setup order."
date: 2026-09-11
lastUpdated: 2026-09-11
author: "Chloe Marsden"
url: https://aussiestoreguides.com/how-shopify-works-australia/
site: "Aussie Store Guides (aussiestoreguides.com)"
language: en
---

# How Shopify works in Australia for sellers

![An abstract e-commerce workspace with a laptop, shipping boxes and a coffee cup, styled with clean editorial composition](https://aussiestoreguides.com/images/how-shopify-works-australia-cover-1200.webp)

> **The short answer:** Shopify runs a local shopfront for Australian sellers with AUD pricing, Shopify Payments, Afterpay and Australia Post labels. It won't register you for GST, remit tax to the ATO or open a bank account. According to Shopify, Basic costs A$56 a month on monthly billing or A$42 billed annually, Grow is A$149 or A$114, and Advanced is A$575 or A$431. According to the Australian Taxation Office, you must register for GST once your turnover reaches A$75,000, and you must register within 21 days of crossing that threshold. Treat Shopify as the sales layer and keep compliance as your job.

Shopify plans, pricing and features change; always verify the current details on shopify.com before deciding.

Shopify handles the selling. You handle the tax, the ABN and the bank account. That division of labour is the whole article in one sentence, and it's the setup order we recommend: ABN and GST first, then payments, then postage. For the full step-by-step walkthrough, see our [Shopify Australia: set up your store step by step](https://aussiestoreguides.com/shopify-australia-setup-guide/) guide.

Australian retail turnover was A$37,906.6 million in June 2025, up 4.9% on the same month a year earlier, according to the [Australian Bureau of Statistics](https://www.abs.gov.au/statistics/industry/retail-and-wholesale-trade/retail-trade-australia/latest-release) (2025). Online sellers are part of that trade, and the ATO treats them no differently from a shopfront on the high street.

## Table of contents

- [What Shopify actually does for an Australian seller](#what-shopify-actually-does-for-an-australian-seller)
- [ABN, GST and the A$75,000 rule: sort this before you build](#abn-gst-and-the-a75000-rule-sort-this-before-you-build)
- [Shopify's AUD plans: what you'll pay each month](#shopifys-aud-plans-what-youll-pay-each-month)
- [Connect Shopify Payments to your own Australian bank account](#connect-shopify-payments-to-your-own-australian-bank-account)
- [Set up Australia Post and Sendle for local postage](#set-up-australia-post-and-sendle-for-local-postage)
- [Selling overseas: Shopify Markets and the GST export rule](#selling-overseas-shopify-markets-and-the-gst-export-rule)
- [Five traps that catch Australian sellers](#five-traps-that-catch-australian-sellers)
- [Frequently asked questions](#frequently-asked-questions)
- [Sources](#sources)

## What Shopify actually does for an Australian seller
Shopify is a cloud-based commerce platform. It hosts your shopfront, processes checkout, takes card payments and prints postage labels. What it doesn't do is register your business, remit your GST or keep records for your BAS.

In Australia, Shopify runs in AUD with local payment methods, GST collection at checkout and carrier integrations for Australia Post and Sendle. You can sell across multiple channels: online, social media, marketplaces and in person via Shopify POS, which syncs inventory between your website and a physical shopfront.

Themes and a drag-and-drop editor let you build the store without coding. The Shopify App Store extends functionality with thousands of apps. Hosting, security and maintenance are all handled by Shopify, which reduces the technical burden for a first-time seller.

Here's the setup order that works:

1. Register your ABN through the Australian Business Register.
2. Register for GST if your turnover will exceed A$75,000.
3. Connect Shopify Payments to your Australian bank account.
4. Configure postage rates for Australia Post or Sendle.
5. Build your product catalogue and theme.
6. Launch.

Still weighing whether the platform suits your situation? Our [What is Shopify, and how does it work in Australia?](https://aussiestoreguides.com/what-is-shopify-australia/) page lays it out in plain terms.

## ABN, GST and the A$75,000 rule: sort this before you build
The ATO sets out the GST rules plainly. You must register for GST once your GST turnover reaches A$75,000 or more in a rolling 12-month period, according to the [ATO's GST registration page](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst) (2025). Non-profits face a higher threshold of A$150,000.

You need an Australian Business Number before you can register for GST, and you apply for the ABN through the [Australian Business Register](https://www.abr.gov.au/). Register voluntarily before hitting the threshold and you generally must stay registered for at least 12 months. Registration can be backdated by up to four years, which matters if you cross the threshold and don't realise.

The 21-day rule catches people. You must register within 21 days of your GST turnover exceeding the threshold, according to the same ATO page. Miss that window and penalties can apply.

ASIC requires you to register a business name if you're not trading under your own legal name. To register via ASIC Connect, you need an ABN first, according to the [Australian Securities and Investments Commission](https://www.asic.gov.au/for-business-and-companies/business-names/register-a-business-name). The structure you choose (sole trader, company, trust) affects your tax position.

Does Shopify remit GST to the ATO for you? No. Shopify calculates and collects GST at checkout once you've configured tax settings, but remitting it is your responsibility through your BAS. For a deeper walkthrough, see our [GST on your Shopify store: an Australian guide](https://aussiestoreguides.com/shopify-gst-australia/).

Digital products sold to Australian customers are taxable. An ebook, a downloadable pattern or a subscription all attract GST if you're registered.

**Our suggested GST readiness checklist:**

- ABN applied for through the Australian Business Register.
- Business name registered with ASIC (if not trading under your own name).
- GST registration completed (if turnover exceeds A$75,000).
- Shopify tax settings configured to charge 10% GST.
- Record-keeping system in place for BAS lodgement.

## Shopify's AUD plans: what you'll pay each month
Heads up: this guide uses Shopify affiliate links. Sign up through one and we earn a commission, and you pay exactly the same as you would otherwise.

According to [Shopify's Australian pricing page](https://shopify.pxf.io/WOzLvA?subId1=aussiestoreguides.com&u=https%3A%2F%2Fwww.shopify.com%2Fau%2Fpricing), checked on 6 August 2026, the plans are:

| Plan | Monthly (AUD) | Annual (AUD/month) | Shopify Payments rate | External gateway surcharge | Our call |
| --- | --- | --- | --- | --- | --- |
| Basic | A$56 | A$42 | 1.75% + 30c | 2% | First online store |
| Grow | A$149 | A$114 | 1.6% + 30c | 1% | Growing volume |
| Advanced | A$575 | A$431 | 1.4% + 30c | 0.6% | High volume, custom reporting |

Plus is custom-priced and out of scope for a first store. Shopify also offers a free trial and a promotional period for new merchants before reverting to the standard price.

Here's a worked monthly bill on Basic. Say your store processes A$10,000 in card sales across 200 orders. The plan costs A$56. Shopify Payments fees are A$10,000 × 1.75% = A$175, plus 200 × 30c = A$60, totalling A$235. Grand total: A$291.

The same volume on Grow costs more. Basic is A$78 cheaper at this level. The fee savings on Grow (0.15% lower) only offset the higher plan price once you reach a certain level of monthly card sales.

For a deeper comparison, see our [Shopify plans compared: the real cost for Australian sellers](https://aussiestoreguides.com/shopify-plans-australia/) and [How much does Shopify cost in Australia?](https://aussiestoreguides.com/shopify-cost-australia/) pages.

The plan price is the number Shopify advertises. It is almost never the number that leaves your account.

> **Our take:** Basic is the right starting point for nearly every new Australian seller. The gap between Basic and Grow requires a significant level of monthly card sales for the lower fee percentage to offset the higher plan price. Switch when the maths says so, not when the feature list tempts you.

## Connect Shopify Payments to your own Australian bank account
Shopify Payments is available in Australia and lets you accept Visa, Mastercard, American Express, Apple Pay, Google Pay and Shop Pay without a separate gateway. Afterpay is also supported as a payment method through Shopify.

Shopify doesn't provide a business bank account. You connect your own Australian bank account (any account with a BSB and account number) for payouts, and Shopify transfers funds on a rolling schedule. There's no preferred or restricted list of banks.

An alternative is eWay, a local payment gateway that integrates with Shopify. Some sellers use eWay for specific reasons, but Shopify Payments is the default and carries no additional gateway surcharge.

Shop Pay deserves a mention. According to [Shopify's Shop Pay page](https://shopify.pxf.io/WOzLvA?subId1=aussiestoreguides.com&u=https%3A%2F%2Fwww.shopify.com%2Fau%2Fshop-pay), accessed 6 August 2026, Shop Pay converts significantly better than guest checkout, based on an external study completed in April 2023. Any merchant using Shopify Payments gets Shop Pay automatically with no additional fees. For setup details, see our [Shopify Payments in Australia: fees and setup](https://aussiestoreguides.com/shopify-payments-australia/) guide.

Can you use Shopify Payments without an ABN? Shopify requires business details to activate payments, and an ABN is part of that verification. Don't skip it.

## Set up Australia Post and Sendle for local postage
Postage is the line most new sellers underestimate. A parcel to the next suburb and a parcel to a remote postcode are not the same cost, and a flat rate quietly averages the two.

Shopify integrates with Australia Post and Sendle for discounted label printing and rate calculation at checkout. Australia Post publishes its own rate card by lodgement postcode, and Sendle offers flat-rate carbon-neutral delivery. Both appear in Shopify's shipping settings once you connect the carrier.

The practical decision is whether to charge flat-rate, calculated rates or free shipping. Flat-rate is simple but eats margin on remote deliveries. Calculated rates pass the real cost to the customer. Free shipping is a margin decision, not a marketing one.

Regional and remote postcodes cost significantly more to service than metro areas. Offer free shipping nationally and the remote orders eat the metro orders' margin. Work out your average delivery cost by postcode band before you commit to a threshold.

For a full walkthrough, see our [Set up Australia Post shipping in Shopify](https://aussiestoreguides.com/australia-post-shipping-shopify/) guide.

## Selling overseas: Shopify Markets and the GST export rule
Shopify Markets lets you sell in multiple currencies and regions from a single store. You can set localised pricing, duties and tax display for each market.

Exports are generally GST-free. Ship a physical product to an overseas address and the sale doesn't attract GST, nor do you include it in your GST turnover. Domestic digital sales are different: an ebook or subscription sold to an Australian customer is taxable if you're registered.

The ACCC states that when an overseas online business provides goods or services directly to Australian consumers, it must follow the Australian Consumer Law. This includes consumer guarantees, according to the [ACCC's buying online guidance](https://www.accc.gov.au/consumers/buying-products-and-services/buying-online). The same principle applies in reverse if you sell overseas, though destination-country law may also apply.

Multi-currency checkout handles conversion at the payment level. Your payouts can still arrive in AUD. Configure each market's tax settings individually, because GST treatment differs between domestic and export sales.

## Five traps that catch Australian sellers
1. **Pricing in USD.** Shopify defaults to USD in some settings. Don't switch your store currency to AUD and customers see dollar signs they can't distinguish from USD, which may cause abandonment at checkout.

2. **Not registering for GST on time.** The ATO requires registration within 21 days of crossing A$75,000. Late registration can trigger penalties, and backdating is limited to four years.

3. **Ignoring transaction fees.** The plan price is one line. On Basic, Shopify Payments charges 1.75% + 30c per transaction, and third-party gateways add a further 2% surcharge. Shopify Payments fees apply to orders of a certain value. Over 200 orders a month, that's A$295 before you've paid for apps or postage.

4. **Assuming Shopify handles tax.** Shopify calculates GST at checkout if you configure it, but it doesn't remit, report or lodge your BAS. The [ATO's business deductions page](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions) (2026) states you must have records to prove a business deduction, and that obligation sits with you.

5. **Not keeping records for BAS.** The ATO requires records for all business transactions. Shopify's reports help, but they're not a substitute for proper bookkeeping. Small businesses can claim a 20% bonus deduction on technology expenditure to help digitise their business, according to the same ATO page (2026), so investing in accounting software may partly offset itself.

The ACCC reminds sellers that [online businesses have the same responsibilities](https://www.accc.gov.au/consumers/buying-products-and-services/buying-online) to consumers as physical businesses. Consumer guarantees apply against you as the seller, not against Shopify.

One more: [Australian Privacy Principle 1.3](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/more-guidance/guide-to-developing-an-app-privacy-policy) requires an APP entity to have a clearly expressed privacy policy. This policy must describe how it manages personal information, according to the Office of the Australian Information Commissioner (2014). If your Shopify store collects customer data, you need one.

## Frequently asked questions
### Can I use Shopify Payments without an ABN?

No. Shopify requires business verification to activate Shopify Payments, and an ABN is part of that process. You can apply for one through the Australian Business Register at no cost, and it typically arrives within a few business days if your identity checks are straightforward.

### Does Shopify remit my GST to the ATO for me?

No. Shopify collects GST at checkout when you've configured tax settings, but remitting it is your responsibility. You report and pay GST through your Business Activity Statement, usually lodged quarterly, directly to the ATO.

### What are the penalties for not registering for GST on time?

The ATO doesn't publish a fixed penalty amount on its registration page, but late registration can result in failure-to-lodge penalties. Because registration can be backdated by up to four years, you could owe GST on past sales you didn't collect from customers.

### Which Australian banks work with Shopify Payments?

Any Australian bank account with a BSB and account number works. Shopify doesn't provide a bank account, and there's no preferred or restricted list. Commonwealth, NAB, ANZ and Westpac are all fine, as are credit unions and online-only banks.

### How do I handle GST on digital products sold from Shopify?

Digital products sold to Australian customers are taxable if you're registered for GST. A downloadable ebook, a PDF pattern or a recurring subscription all count. Exports of digital products to overseas customers may be GST-free, but the rules differ from physical exports, so check the ATO's guidance for your specific situation.

### Does Shopify provide an Australian business bank account?

No. Shopify is a commerce platform, not a bank. You open your own business account with any Australian financial institution and connect it to Shopify Payments for payouts using a standard BSB and account number entry in your admin settings.

## Sources
1. Australian Taxation Office, "Registering for GST". https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst — checked on 26 August 2026
2. Australian Bureau of Statistics, "Retail Trade, Australia, June 2025". https://www.abs.gov.au/statistics/industry/retail-and-wholesale-trade/retail-trade-australia/latest-release — checked on 26 August 2026
3. Australian Securities and Investments Commission, "Register a business name". https://www.asic.gov.au/for-business-and-companies/business-names/register-a-business-name — checked on 26 August 2026
4. Australian Competition and Consumer Commission, "Buying online". https://www.accc.gov.au/consumers/buying-products-and-services/buying-online — checked on 26 August 2026
5. Australian Taxation Office, "Business deductions". https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions — checked on 26 August 2026
6. Australian Business Register, "Home | Australian Business Register". https://www.abr.gov.au/ — checked on 26 August 2026
7. Office of the Australian Information Commissioner, "Guide to developing an APP privacy policy". https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/more-guidance/guide-to-developing-an-app-privacy-policy — checked on 26 August 2026
8. Shopify Inc., "Shop Pay". https://www.shopify.com/shop-pay — checked on 6 August 2026