GST in New South Wales
New South Wales is home to Australia's largest economy, with Sydney at its centre driving financial services, property, and tourism. GST at 10% applies uniformly across the country, but the way it hits NSW businesses depends heavily on the industries they operate in. Here's what you need to know about GST as it applies to the sectors that matter most in this state.
Add GST
If amount excludes GSTSubtract GST
If amount includes GSTKey industries and GST in NSW
Financial Services
Sydney is Australia's financial capital, and GST treatment of financial services is notoriously complex. Most financial supplies — things like lending, currency exchange, and issuing securities — are input-taxed, meaning you don't charge GST on them but you also can't claim full input tax credits on related expenses. If your business provides a mix of taxable and financial supplies, you'll need to work out your apportionment carefully. Reduced input tax credits (RITCs) at 75% are available for certain acquisitions related to financial supplies, so make sure you're claiming what you're entitled to.
Property & Construction
NSW has the country's most active property market, and GST plays a major role in development and construction. New residential property sales attract the full 10% GST, while existing residential property is generally GST-free when sold. The margin scheme is widely used by NSW developers — it lets you calculate GST on just the profit margin rather than the full sale price, which can significantly reduce the tax owed. Commercial property is fully taxable, and if you're buying commercial premises as a going concern, the sale can be GST-free provided both parties are registered and the right conditions are met.
Hospitality & Tourism
From Circular Quay restaurants to Hunter Valley cellar doors, hospitality is a massive part of the NSW economy. All restaurant meals, hotel stays, and tour bookings attract the standard 10% GST. If you run a café or restaurant, GST applies to everything you sell except for takeaway food items that qualify as basic food — and the line between taxable and GST-free food catches people out constantly. A plain bread roll is GST-free; heat it up and add a filling, and it's taxable. International tourists can claim GST refunds on goods through the Tourist Refund Scheme at the airport.
GST registration in New South Wales
You must register for GST if your annual turnover reaches $75,000, or $150,000 for non-profit organisations. Taxi drivers and ride-share operators must register regardless of turnover. Registration is done through the ATO, and once registered, you'll need to lodge Business Activity Statements either monthly or quarterly.
GST-free items in NSW
- Basic food (bread, milk, fresh fruit and vegetables, meat)
- Most health services (GP visits, dental, physiotherapy)
- Most education courses (school fees, university tuition)
- Childcare services
- Exports of goods and services
- Sales of existing residential property
- Water sewerage and drainage services
- Some religious and charitable activities
Need more detail? Read the complete GST guide or check the FAQ.