Complete guide to GST in Australia

The Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. This guide covers everything you need to manage GST in your business — from registration to reporting.

When to register for GST

You must register for GST when your business:

Has an annual GST turnover of $75,000 or more
Provides taxi or ride-sourcing services (regardless of turnover)
Wants to claim fuel tax credits

Non-profit organisations have a higher threshold of $150,000. You can also register voluntarily below the threshold if you want to claim GST credits on business purchases.

How GST works

Collecting GST

If you're registered, you add 10% GST to the price of most goods and services you sell. You then:

Include GST in your prices or show it separately on invoices
Collect the GST from your customers at the point of sale
Set aside the collected GST to remit to the ATO

Claiming GST credits

You can claim credits for the GST included in the price of things you buy for your business:

Keep valid tax invoices for all business purchases
The GST credit is 1/11th of the GST-inclusive price
Subtract your credits from the GST you've collected — the difference is what you pay the ATO

Need to calculate GST quickly?

Use the GST calculator

GST-free items

Not everything attracts GST. Key exemptions include:

Basic food — bread, milk, meat, fresh fruit and vegetables
Health services — most GP visits, some hospital services
Education — most course fees at registered institutions
Exports — goods and services sold to overseas customers
Certain charitable activities — supplies by endorsed charities

Getting classifications wrong can lead to compliance issues. Check the ATO's GST guidelines if you're unsure.

Calculating GST

The formulas are straightforward:

Add GST: multiply the price by 1.1
Find GST in a price: divide the GST-inclusive price by 11
Remove GST: divide the GST-inclusive price by 1.1

For example, a $100 item plus GST = $110. The GST component of $110 is $10 (= 110 ÷ 11).

Skip the maths.

Open GST calculator

Business obligations

Record keeping

You must keep these records for at least 5 years:

Tax invoices for all purchases and sales
Income and expense records
BAS statements
Bank statements

Reporting periods

You report GST through your Business Activity Statement (BAS):

Monthly — required if turnover exceeds $20 million
Quarterly — the most common option for most businesses
Annually — available for some voluntary registrants

Compliance tips

Do:

Set aside GST as you receive it — don't spend it
Use accounting software to track GST automatically
Lodge your BAS on time to avoid late penalties
Review your GST classifications regularly

Common mistakes:

Missing the registration deadline when turnover crosses $75,000
Incorrectly classifying items as GST-free
Not keeping tax invoices for purchases under $82.50
Late BAS lodgement — even a day late can incur penalties