🇦🇺 Australia GST Calculator
Calculate Goods and Services Tax (GST) - Updated 2025
Standard Rate: 10%
GST Rate:
10%
Base Amount (Ex GST):
$0.00
GST Amount:
$0.00
Total Amount (Inc GST):
$0.00
How to Calculate Australian GST
The Goods and Services Tax (GST) is a broad-based consumption tax of 10% on most goods, services, and other items sold or consumed in Australia. GST has been in place since July 1, 2000, and is administered by the Australian Taxation Office (ATO).
Important: Australia has a uniform 10% GST rate that applies nationwide. Unlike some countries with varying state or provincial taxes, the GST rate is consistent across all Australian states and territories.
Adding GST to a Price
When you need to add GST to a GST-exclusive price (common for business-to-business transactions), use this formula:
GST Amount = Base Price × 0.10
Total Price (Inc GST) = Base Price + GST Amount
Or simply: Total Price (Inc GST) = Base Price × 1.10
Example: If the base price is $100 (excluding GST):
GST Amount = $100 × 0.10 = $10.00
Total Price = $100 + $10.00 = $110.00
Removing GST from a Price
When you need to calculate the GST-exclusive price from a GST-inclusive price (common for retail transactions), use this formula:
Base Price (Ex GST) = Total Price ÷ 1.10
GST Amount = Total Price - Base Price
Or: GST Amount = Total Price × (1/11)
Example: If the total price is $110 (including GST):
Base Price = $110 ÷ 1.10 = $100.00
GST Amount = $110 - $100 = $10.00
Or: GST Amount = $110 × (1/11) = $10.00
Quick Tip: The ATO states that GST is 1/11th of the GST-inclusive price. This means for any price that includes GST, exactly 1/11th (approximately 9.09%) of that price is the GST component.
Understanding Australian GST
What is GST?
Goods and Services Tax (GST) is a value-added tax (VAT) system that applies a 10% tax at each stage of the supply chain. However, only the final consumer bears the full cost. Businesses registered for GST can claim credits for the GST they pay on business purchases, making GST a tax on consumption rather than on businesses.
Who Needs to Register for GST?
You must register for GST if:
- Your business turnover is $75,000 or more per year - This includes all business income before expenses
- Your non-profit organisation has a turnover of $150,000 or more per year - Higher threshold for registered charities and non-profits
- You provide taxi, limousine, or ride-sharing services - Including Uber, DiDi, Ola drivers regardless of turnover
- You want to claim fuel tax credits - Regardless of turnover, if you wish to claim fuel tax credits
If your turnover is below these thresholds, registration is optional. However, voluntary registration allows you to claim GST credits on business purchases.
GST Registration Process
To register for GST in Australia, you need:
- An Australian Business Number (ABN)
- To complete registration through ATO Business Portal or by phone
- To choose your reporting period (monthly, quarterly, or annually)
- To start charging GST from your registration date
How Businesses Report GST
Registered businesses report GST through Business Activity Statements (BAS):
- Monthly: For businesses with turnover of $20 million or more, or who choose monthly reporting
- Quarterly: Most common option for small to medium businesses
- Annually: Available for businesses with turnover under $75,000 (voluntary registration)
In your BAS, you report the GST you collected on sales (GST on sales) and the GST you paid on business purchases (GST credits). The difference is what you pay to or receive from the ATO.
GST Exemptions and GST-Free Items
GST-Free vs Exempt: It's important to understand the difference. GST-free items don't include GST in the price, but you can still claim GST credits on related business purchases. Exempt items also don't include GST, but you cannot claim GST credits for them.
Common GST-Free Items (Input Tax Credits Available)
The following items are GST-free, meaning no GST is charged, but businesses can claim GST credits on related expenses:
- Basic Food Items: Bread, milk, eggs, fresh meat, fresh fruit and vegetables, tea, coffee, and most basic groceries (excludes prepared foods, restaurant meals, and confectionery)
- Some Beverages: Milk, tea, coffee (but not soft drinks, fruit juices, or flavored milk)
- Medical and Healthcare Services: GP visits, hospital treatments, dental services, medical aids and appliances
- Prescription Medicines: Drugs and medicinal preparations available only by prescription
- Medical Aids and Appliances: Items like wheelchairs, crutches, hearing aids
- Education Services: Education courses provided by approved education institutions
- Child Care Services: Care for preschool children in licensed or registered facilities
- Religious Services: Services provided by religious institutions
- Exports: Goods exported from Australia
- International Transport: Passenger transport where the destination is outside Australia
- Precious Metals: Gold, silver, and platinum bullion (meeting certain purity requirements)
GST Exempt Items (No Input Tax Credits)
These items are exempt from GST, but businesses cannot claim GST credits on related expenses:
- Financial Services: Bank fees, loan interest, credit card charges (though some fees may be taxable)
- Residential Rent: Long-term residential accommodation (stays longer than 28 days)
- Sale of Existing Residential Property: Second-hand residential properties (new residential property is taxable)
- Donated Goods: Goods sold by charities where the donation was made to the charity
Items That Include GST
Most other goods and services include 10% GST, including:
- Restaurant meals and takeaway food
- Processed and packaged foods (biscuits, chips, confectionery)
- Soft drinks and alcohol
- Clothing and footwear
- Electronics and household goods
- Hotels and short-term accommodation (less than 28 days)
- Entertainment and leisure activities
- Professional services (accounting, legal, consulting)
- Building and construction services
- New residential property sales
- Vehicle sales and servicing
GST for International Transactions
Importing Goods into Australia
GST applies to most goods imported into Australia. As of July 1, 2018, GST applies to all imported goods regardless of value:
- Low Value Imports (under $1,000): Overseas suppliers are required to register for and charge Australian GST if their Australian sales exceed $75,000 per year
- High Value Imports ($1,000+): GST is collected at the border by Australian Border Force before goods are released
Exports from Australia
Goods and services exported from Australia are generally GST-free. This means:
- No GST is charged on the export
- You can still claim GST credits on related business expenses
- Export sales count towards your GST registration threshold
Digital Products and Services
Since July 1, 2017, overseas businesses providing digital products and services to Australian consumers must register for and charge GST if their Australian turnover exceeds $75,000. This includes:
- Streaming services (Netflix, Spotify)
- Downloaded digital content (music, movies, e-books)
- Online software and apps
- Consulting and professional services delivered online
Australian GST Quick Reference
| Aspect | Details |
|---|---|
| GST Rate | 10% (uniform across all states and territories) |
| Introduction Date | July 1, 2000 |
| Registration Threshold | $75,000 annual turnover (businesses) $150,000 (non-profits) |
| Administering Authority | Australian Taxation Office (ATO) |
| Reporting Frequency | Monthly, Quarterly, or Annually (via BAS) |
| Tax Type | Value Added Tax (VAT) / Consumption Tax |
| Input Tax Credits | Available for registered businesses on GST-free and taxable purchases |
| International Transactions | Exports: GST-free Imports: GST applies (collected at border or by supplier) |
| Penalty for Late Filing | Failure to lodge penalty (up to $1,110 per statement) |
| Common Exemptions | Basic food, healthcare, education, financial services, residential rent |
Frequently Asked Questions (FAQ)
What is GST in Australia?
GST (Goods and Services Tax) is a broad-based consumption tax of 10% on most goods, services, and other items sold or consumed in Australia. It was introduced on July 1, 2000, and is administered by the Australian Taxation Office (ATO). GST is included in the price of most goods and services, and businesses collect it on behalf of the government.
How much is GST in Australia?
The GST rate in Australia is a flat 10% on most goods and services. This rate has remained unchanged since GST was introduced in 2000. The rate is uniform across all Australian states and territories, making it simpler than tax systems in countries with varying regional rates.
How do I calculate GST in Australia?
To add GST to a price: multiply the base price by 1.10 or add 10% to the price. To remove GST from a GST-inclusive price: divide by 1.10 or multiply by 10/11. The ATO states that GST is 1/11th of any GST-inclusive price, meaning if a price includes GST, exactly 1/11th (9.09%) of that total is the GST amount.
Do I need to register for GST in Australia?
You must register for GST if: (1) your business has an annual turnover of $75,000 or more, (2) your non-profit organisation has an annual turnover of $150,000 or more, (3) you provide taxi or ride-sharing services regardless of turnover, or (4) you want to claim fuel tax credits regardless of turnover. Registration is optional below these thresholds.
What items are GST-free in Australia?
Common GST-free items include: basic food items (bread, milk, meat, fruit, vegetables), most healthcare and medical services, prescription medicines, medical aids and appliances, education courses, child care services, exports, and international transport. GST-free means no GST is charged, but businesses can still claim GST credits on related expenses.
Is fresh food GST-free in Australia?
Yes, most basic fresh food items are GST-free, including fresh meat, fish, bread, milk, eggs, fresh fruit and vegetables, tea, and coffee. However, prepared foods, restaurant meals, confectionery, soft drinks, and certain processed foods include GST. The distinction is whether the food is a basic ingredient or a prepared/luxury item.
Do online purchases include GST in Australia?
Yes, GST applies to online purchases in Australia. Since July 1, 2018, overseas businesses selling goods to Australian consumers must register for and charge GST if their Australian sales exceed $75,000 per year. This includes physical goods, digital products, and online services. Australian businesses operating online must charge GST on all taxable supplies.
Can I claim GST credits on business purchases?
Yes, if you are registered for GST, you can claim credits (called input tax credits) for the GST included in the price of goods and services you buy for your business. This is claimed through your Business Activity Statement (BAS). The credits reduce the amount of GST you need to pay to the ATO, ensuring GST only applies to the final consumer.
What is a Business Activity Statement (BAS)?
A Business Activity Statement (BAS) is a form that businesses registered for GST use to report and pay their GST obligations to the ATO. You report the GST you collected on sales and the GST you paid on business purchases (GST credits). The difference is what you pay to or receive from the ATO. BAS is lodged monthly, quarterly, or annually depending on your business turnover.
Is GST the same in all Australian states?
Yes, GST is a federal tax with a uniform rate of 10% across all Australian states and territories. Unlike countries with state or provincial sales taxes, Australia has a single GST system administered by the federal government through the ATO. The revenue collected is distributed to states and territories by the Commonwealth government to fund public services.
Official Australian Government Sources & References
All GST data is sourced from official Australian government agencies and trusted financial authorities:
🏛️ Australian Taxation Office (ATO) - Official Federal Tax Authority 📊 ATO - How GST Works (Official Guide) 🌏 ATO - GST for Non-Resident Businesses 📝 Business.gov.au - Register for GST 📄 ATO - Business Activity Statements (BAS) ✅ ATO - GST-Free Sales and Exemptions