GST in Victoria
Victoria has Australia's most diversified state economy, with strengths in manufacturing, the creative industries, and a hospitality sector that's become part of Melbourne's identity. The 10% GST applies the same way across all of Australia, but the practical impact depends on the industries your business operates in. Here's how GST works for the sectors that define Victoria.
Add GST
If amount excludes GSTSubtract GST
If amount includes GSTKey industries and GST in VIC
Manufacturing
Victoria has historically been Australia's manufacturing heartland, and the sector still covers everything from food processing to automotive components and pharmaceuticals. GST at 10% applies to the sale of all manufactured goods domestically. Manufacturers exporting their products can zero-rate those sales — meaning they don't charge GST on exports but can still claim input tax credits on all their production costs, raw materials, and overheads. This makes the export side attractive from a GST cash flow perspective. For manufacturers selling both domestically and overseas, getting the apportionment of input tax credits right between taxable and GST-free supplies is one of the trickier parts of BAS preparation.
Creative Industries & Arts
Melbourne is the cultural capital of Australia, and the creative sector — film, music, design, galleries, and performing arts — is a significant part of the Victorian economy. GST applies to ticket sales, artwork sales, design services, and production fees at the standard 10% rate. Artists and creatives earning over $75,000 must register for GST, which means charging it on commissions and gallery sales. One area that trips people up is grants and sponsorships — government arts grants are generally not subject to GST, but sponsorship deals where you provide something in return (like naming rights or promotional services) are taxable supplies. If you sell artwork through a gallery, the gallery typically handles GST on the sale, but you still need to account for GST on your commission arrangement.
Hospitality & Cafe Culture
Melbourne's cafe and restaurant scene is world-renowned, and hospitality is one of the state's biggest employers. GST applies to all prepared food and drinks served in cafes, restaurants, pubs, and bars — no exceptions. The distinction between GST-free basic food and taxable prepared food is where it gets complicated. A bottle of plain milk from a shop is GST-free; a flat white made with that milk is taxable. A plain bread roll sold unheated is GST-free; toast it and add avocado, and GST applies. Caterers, food trucks, and event hospitality businesses need to charge GST on everything they serve. For venue operators, GST also applies to function room hire and event packages.
GST registration in Victoria
GST registration is required once your annual turnover hits $75,000, or $150,000 for non-profit organisations. Ride-share and taxi drivers must register from their first fare. Registration is handled through the ATO, and you'll need an ABN. Most small businesses lodge their BAS quarterly, reporting GST collected and claiming input tax credits on business expenses.
GST-free items in VIC
- Basic food (bread, milk, fresh fruit and vegetables, raw meat)
- Most health services (GP visits, dental, physiotherapy, hospital treatment)
- Most education courses (primary, secondary, and tertiary tuition)
- Childcare services
- Exports of goods and services
- Sales of existing residential property
- Water sewerage and drainage services
- Some charitable and religious activities
Need more detail? Read the complete GST guide or check the FAQ.