What is GST in Australia?
What is GST in Australia? The ATO's goods and services tax page (opens in a new tab) describes it as a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. The rate is 10% in 2026-27, so a $1,320 invoice that includes GST carries $120 of GST.
By Calculatax
The Goods and Services Tax (GST) comes from the A New Tax System (Goods and Services Tax) Act 1999. Registered businesses collect it for the Australian Taxation Office (ATO) and report it on a Business Activity Statement (BAS). It's one of the taxes covered by our Australian tax & pay calculators, alongside income tax and super.
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GST calculator
Add GST to a price, or take it out.
| GST fact | 2026-27 figure | Source |
|---|---|---|
| GST rate | 10% of the GST-exclusive price | ATO |
| Price including GST | GST-exclusive price × 1.1 | Derived from the 10% rate |
| GST inside a GST-inclusive price | GST-inclusive price ÷ 11 | Derived from the 10% rate |
| Registration threshold, businesses | GST turnover of $75,000 or more | ATO |
| Registration threshold, non-profit bodies | GST turnover of $150,000 or more | ATO |
| Taxi, limousine and ride-sourcing drivers | Must register at any turnover | ATO |
- GST calculatorAdd 10% GST to a price, or take the GST out of a GST-inclusive total.
- BAS calculatorTurn a period's sales and purchases into GST collected, GST credits and the net amount payable or refundable.
What GST is: 10% on most goods and services
GST is charged at 10% of the price before GST. The seller adds it to the price, collects it from the buyer and pays it to the ATO.
The tax applies at every step of the supply chain. Each registered business claims back the GST it paid on its own business inputs. So the full 10% lands on the final consumer, who can't claim it back.
Both directions use one rule:
- Price including GST = price excluding GST × 1.1.
- GST in a GST-inclusive price = price including GST ÷ 11.
| Step | Amount | Running total |
|---|---|---|
| Quote before GST | $1,200 | $1,200 |
| GST$1,200 × 10% | +$120 | $1,320 |
| Invoice total | $1,320 | |
Working backwards, $1,320 ÷ 11 = $120 of GST.
Who must register: the $75,000 and $150,000 thresholds
The ATO's rules on registering for GST (opens in a new tab) test both current and projected turnover. Sole traders can see tax and GST together in the ABN tax calculator.
- A business must registerOnce GST turnover is $75,000 or more
- $75,000
- A non-profit organisation must registerOnce GST turnover is $150,000 or more
- $150,000
- Drivers who provide taxi or limousine travel, including ride-sourcingThey must register "regardless of your GST turnover"
- Any turnover
GST turnover is broadly your gross business income, not counting the GST in your sales. It's not profit, so expenses don't reduce it. A sole trader with $80,000 of sales and $50,000 of costs has passed the $75,000 threshold.
You need an Australian Business Number (ABN) to register. A business below the threshold can choose to register. It then charges GST on its sales, lodges a BAS and can claim GST credits.
GST-free vs input-taxed supplies
Both kinds of sale carry no GST in the price. The difference is on the seller's side: a GST-free seller can still claim credits for the GST in its purchases, and an input-taxed seller can't.
| Treatment | GST on the sale | Seller claims GST credits on related purchases | Common examples |
|---|---|---|---|
| Taxable | Yes, 10% | Yes | Most goods and services |
| GST-free | No | Yes | Most basic food, many health and medical services, education courses, exports |
| Input-taxed | No | No | Residential rent, financial supplies such as lending |
Input-taxed sellers carry the GST on their costs as an expense. A landlord of a residential property, for example, pays GST on repairs and can't claim it back from the ATO. Each category has detailed rules, so confirm how an item is treated before you price it.
Reporting GST on your BAS
GST is reported on the BAS for each reporting period. Label 1A records the GST on your sales and label 1B records your GST credits. When 1A is larger, you pay the difference to the ATO; when 1B is larger, the ATO refunds it.
| Step | Amount | Running total |
|---|---|---|
| GST on the invoiceLabel 1A | +$120 | $120 |
| GST credit on the laptopLabel 1B | −$50 | $70 |
| GST to pay for the period | $70 | |
The BAS calculator works through G1, 1A and 1B for a full quarter, including GST-free sales and due dates.
GST is separate from the income tax on a business's profit, which is covered in the tax return guide. Employers also pay superannuation for staff, and GST doesn't apply to wages or super.
GST questions: the rate, imports, digital services and tax invoices
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What is Australian GST?
Australian GST is a 10% tax on most goods, services and other items sold or consumed in Australia. Registered businesses add it to their prices and pass it to the ATO, then claim back the GST in their own business purchases. The final consumer bears the cost. Some items are GST-free, such as most basic food, and some are input-taxed, such as residential rent.
How much is goods and services tax?
Goods and services tax is 10% of the price before GST, the same rate in every state. To add it, multiply the pre-GST price by 1.1: $1,200 becomes $1,320. To find the GST inside a price that already includes it, divide by 11: a $1,320 total contains $120 of GST, about 9.09% of what you pay.
Do imported goods attract GST?
Yes, most goods imported into Australia attract 10% GST. For higher-value goods, GST is collected at the border along with any duty. For low-value goods, registered overseas sellers and online marketplaces add GST at checkout. The dividing line is a customs value of A$1,000, as the ATO's rules on GST on low value imported goods (opens in a new tab) explain. At or below it the seller collects GST, and above it GST is charged at the border.
Is GST charged on overseas digital services?
Yes. Overseas businesses that sell digital products and services to Australian consumers, such as streaming, apps and software, must register and charge 10% GST once they meet the registration test. The GST appears in the price you pay. A GST-registered Australian business buying these services for business use may be treated differently, so check how the supplier invoices you.
When do you need a tax invoice?
You need a tax invoice to claim a GST credit on a business purchase that costs more than $82.50, including GST. The ATO's page on when you can claim a GST credit (opens in a new tab) sets out the rule. A tax invoice shows the seller's ABN, the date, what was supplied and the GST amount or a statement that the price includes GST. Without a valid tax invoice, the ATO can deny the credit, even when you paid the GST.
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