GstCalculator

Goods and Services Tax (GST) is a fundamental part of Australia’s tax system, affecting consumers, businesses, and the economy. Whether you're a shopper, sole trader, or small business owner, understanding how GST works can help you make smarter financial decisions.

What Is GST?

GST is a broad-based consumption tax of 10% applied to most goods, services, and other items sold or consumed in Australia. It was introduced on 1 July 2000 to replace a range of inefficient taxes and simplify the tax system.

The GST is collected by businesses on behalf of the Australian Government and is ultimately paid by the end consumer.

What Does GST Apply To?

GST is charged on most:

• Goods (e.g. electronics, furniture, clothing)

• Services (e.g. legal advice, cleaning, consulting)

• Digital products (e.g. streaming subscriptions, eBooks)

• Certain imports into Australia

What Is GST-Free?

Some goods and services are GST-free, meaning they are exempt from the 10% tax. These include:

• Basic food items (e.g. bread, milk, fruit and vegetables)

• Medical services and health care

• Education services (e.g. university and school tuition)

• Child care

• Exports

Who Needs to Register for GST?

You must register for GST if:

• Your business or enterprise has a GST turnover of $75,000 or more per year.

• You're a non-profit organisation with a turnover of $150,000 or more per year.

• You provide taxi or rideshare services, regardless of income.

• You want to claim GST credits on business expenses.

You can register for GST through the Australian Business Register (ABR) or via your tax agent.

How Does GST Work for Businesses?

Registered businesses:

1. Charge GST on taxable sales (called output tax).

2. Claim GST credits on business purchases (called input tax).

3. Report and pay GST to the Australian Taxation Office (ATO), usually quarterly or monthly through a Business Activity Statement (BAS).

Example:

You sell a product for $110 (which includes $10 GST). You also paid $22 GST on business supplies. In your BAS:

• You report $10 collected GST

• You claim $22 in GST credits

• You receive a $12 refund from the ATO

How to Calculate GST

To add GST to a price (excluding GST): Price × 1.10 E.g. $100 → $100 × 1.10 = $110

To remove GST from a price (including GST): Price ÷ 1.10 E.g. $110 → $110 ÷ 1.10 = $100 GST amount = $110 - $100 = $10

When Is GST Due?

If you lodge your BAS quarterly, GST payments are due:

• 28 October (Q1: July–Sept)

• 28 February (Q2: Oct–Dec)

• 28 April (Q3: Jan–March)

• 28 July (Q4: April–June)