Frequently Asked Questions

GST (Goods and Services Tax) is a 10% tax on most goods, services, and other items sold or consumed in Australia. It was introduced on 1 July 2000 and is collected by businesses on behalf of the Australian Government.

To add GST, multiply the price by 1.1. To find the GST component in a price that already includes it, divide by 11. For example, on a $100 item: GST-inclusive price is $110, and the GST component is $9.09. You can use our free GST calculator for instant results.

Yes. GST is a federal tax set at 10% nationwide. It applies identically in NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory. States cannot change the GST rate.

Key GST-free categories include most basic foods (bread, milk, fresh fruit and vegetables), most health services, educational courses, some childcare services, exports, and certain charitable activities. The ATO maintains a full list of GST-free items.

You must register for GST if your business has a GST turnover of $75,000 or more per year ($150,000 for non-profit organisations), or if you provide taxi or ride-sourcing services regardless of turnover. You can also register voluntarily if you're below the threshold.

You'll need your Australian Business Number (ABN), business details (structure, address), valid identification, bank account information, and your expected annual turnover. Registration is done through the ATO's online services or via your tax agent.

Yes. Even if your turnover is below $75,000, voluntary registration lets you claim GST credits on business purchases. This can be worthwhile if your business expenses include significant GST. You must then charge GST on your sales and lodge BAS returns.

If you should be registered but aren't, you may owe GST on all sales since the date registration was required, plus penalties and interest. The ATO can also issue failure-to-lodge penalties for each missed BAS period. It's best to register on time.

Track all your sales (GST collected) and business purchases (GST credits). Your net GST obligation is the difference. Most accounting software handles this automatically. For quick manual checks, use our GST calculator.

For each business purchase that includes GST, the credit is 1/11th of the GST-inclusive price. Keep valid tax invoices as evidence, record the amounts for your BAS, then subtract total credits from total GST collected to find your net GST payable.

Exports are generally GST-free. Imports of goods valued over $1,000 attract GST, paid to Customs at the border. For imported services, the supplier may need to register and charge GST if they sell to Australian consumers.

Cash basis: you account for GST when you receive or make payment. Accrual basis: you account for GST when you issue or receive an invoice, regardless of when payment occurs. Businesses with turnover over $10 million must use the accrual method.

Report GST through your Business Activity Statement (BAS). Calculate total GST collected on sales, subtract GST credits from purchases, and report the net amount. Lodge your BAS by the due date — quarterly for most businesses, monthly if turnover exceeds $20 million.

Monthly (required if turnover exceeds $20 million), quarterly (the standard for most businesses — due 28 October, 28 February, 28 April, 28 July), or annually (available for some voluntary registrants with simpler reporting needs).

Keep all tax invoices (received and issued), bank statements, cash register records, contracts, and BAS worksheets. Records must be retained for at least 5 years and should clearly show the GST component of each transaction.

Notify the ATO as soon as you discover the error. Small errors (under $10,000, or up to $10,000 if your turnover is under $20 million) can be corrected on your next BAS. Larger errors require a separate revision request to the ATO.

A tax invoice is required for sales of $82.50 or more (including GST). It must show your business name, ABN, the date, a description of the items, the GST amount, and the total price. You must provide one within 28 days if a customer requests it.

Charge 10% GST to Australian customers the same way as in-person sales. Keep records of all online transactions. International sales to overseas customers are generally GST-free (treated as exports), but you must retain evidence of the export.

Residential rent is GST-free — you don't charge GST on rental income from a house or flat. Commercial property leases do attract GST. Property management fees, maintenance, and repairs on commercial properties also include GST.

You can claim GST credits on most fringe benefits you provide to employees. Special rules apply to entertainment expenses (only 50% GST credit if FBT applies). Keep separate records for FBT and GST purposes.

If you're GST-registered and sell second-hand goods, GST applies to the sale. The margin scheme lets you calculate GST only on the profit margin (sale price minus purchase price) rather than the full selling price. Keep detailed purchase and sale records.