Tax
Calculate your Goods and Services Tax (GST) liabilities and credits in Australia
Calculate GST on sales, GST credits on purchases, and determine net GST payable or refundable
The Australian Goods and Services Tax (GST) is a broad-based consumption tax of 10% applied to most goods and services supplied in Australia or imported into the country. Introduced in 2000, the GST is a key revenue source for the federal government and is administered by the Australian Taxation Office (ATO). Unlike sales taxes used in other countries, the GST is a value-added tax where registered businesses can claim input tax credits for GST paid on their business purchases. This ensures the tax is ultimately borne by the final consumer rather than businesses throughout the supply chain.
When you purchase goods or services in Australia, the GST is typically included in the advertised price. Businesses registered for GST charge the tax on their sales and remit it to the ATO monthly or quarterly, depending on their turnover. However, they can claim credits for GST paid on their business expenses. For example, if a retailer pays GST on inventory and sells it with GST, they only remit the difference to the ATO. Consumers cannot claim GST credits, so they bear the final tax cost. The net effect is that GST revenue comes from end consumers while businesses act as collection agents.
GST Amount = Purchase Price × 10%. To find the pre-GST price: Price ÷ 1.1. To add GST to a pre-tax price: Price × 1.1. For example, $100 plus GST equals $110, or a $110 item includes $10 GST.
The current GST rate in Australia is 10%. This has been the standard rate since the GST was introduced on July 1, 2000. There are no different GST rates for different product categories in Australia, unlike some other countries.
No, some items are GST-exempt or GST-free. GST-free items include fresh food, medical services, education, and residential accommodation. GST-exempt supplies include financial services and certain healthcare services. Businesses supplying these items cannot charge GST and cannot claim input tax credits.
GST registration is compulsory if your annual turnover exceeds $75,000 (or $150,000 for nonprofit organizations). You can choose to register voluntarily if you're below these thresholds, which is beneficial if you need to claim input tax credits on business purchases.
The frequency depends on your turnover. Businesses with an annual turnover above $20 million must remit GST monthly. Most other registered businesses remit quarterly. Some small businesses may be eligible for annual payment arrangements with ATO approval.
