What Is GST in Australia?
The Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. Introduced on 1 July 2000 as part of The New Tax System, GST is administered by the Australian Taxation Office (ATO) and collected at each stage of the supply chain.
GST applies to almost all transactions in the Australian economy, with notable exceptions including most basic foods, certain medical and healthcare services, educational courses, and exports. Understanding how GST works is essential for businesses, sole traders, and consumers alike.
How to Calculate GST
Adding GST (GST-Exclusive to GST-Inclusive)
To calculate the GST-inclusive price from a GST-exclusive amount:
- GST Amount = Price (excl. GST) × 0.10
- GST-Inclusive Price = Price (excl. GST) × 1.10
Example: A consulting service charges $500 excluding GST.
- GST = $500 × 0.10 = $50
- Total including GST = $500 + $50 = $550
Removing GST (GST-Inclusive to GST-Exclusive)
To extract the GST from a GST-inclusive amount, divide by 11:
- GST Amount = Price (incl. GST) ÷ 11
- GST-Exclusive Price = Price (incl. GST) ÷ 1.10
Example: You paid $330 for a product including GST.
- GST component = $330 ÷ 11 = $30
- Price excluding GST = $330 − $30 = $300
GST Registration Thresholds
| Entity Type | Annual Turnover Threshold |
|---|---|
| Businesses | $75,000 |
| Non-profit organisations | $150,000 |
| Taxi/rideshare drivers | $1 (must register regardless) |
Once registered, you must include GST in the price of most goods and services you sell, lodge Business Activity Statements (BAS), and claim GST credits for business purchases.
GST-Free Items in Australia
Not everything attracts GST. The following categories are generally GST-free:
- Basic food: Fresh fruit, vegetables, meat, bread, dairy, eggs
- Health: Most medical, dental, and optometry services; prescription medicines
- Education: Tuition fees for accredited courses, course materials
- Childcare: Approved childcare and kindergarten services
- Exports: Goods and services exported from Australia
- Water and sewerage: Water supply and sewerage services by local government
BAS Reporting and GST Credits
Registered businesses report GST on their Business Activity Statement (BAS), which is typically lodged quarterly or monthly. You report both the GST you’ve collected on sales (GST on sales) and the GST you’ve paid on business purchases (GST on purchases). The difference determines whether you owe the ATO or receive a refund.
Key Tips for BAS
- Keep records of all tax invoices for purchases over $82.50 (including GST)
- Lodge on time to avoid penalties — quarterly BAS is due 28 days after the end of the quarter
- Use accounting software that is ATO-compliant for accurate GST tracking
- Consult a BAS agent if you’re unsure about your obligations
Why Use This GST Calculator?
This calculator provides instant, accurate GST calculations for common scenarios. Whether you’re preparing an invoice, checking a receipt, or estimating costs for a quote, simply enter an amount and toggle between adding or removing GST. All calculations happen in your browser — no data is stored or transmitted.
Disclaimer: This calculator is for informational purposes only and does not constitute tax advice. For official BAS reporting or complex GST scenarios, consult a registered tax agent or the ATO.