GST in Australia is a flat 10%
GST (Goods and Services Tax) is Australia's value-added consumption tax, administered by the Australian Taxation Office (ATO). Australians say "GST", not "VAT" — it is the same kind of tax under a different name. There is a single flat rate of 10%, unchanged since GST began on 1 July 2000. Unlike VAT systems with reduced bands, an Australian sale is either taxable at 10% or it is GST-free (0%).
Adding and removing GST, with worked examples
- Add GST: GST = net × 0.10; total = net × 1.1. For an A$100 sale, GST = A$10 and the inclusive total is A$110.
- Remove GST from a GST-inclusive price: because the rate is a flat 10%, the GST portion is the price divided by 11. For A$110, GST = A$110 ÷ 11 = A$10, and the net price is A$100.
When to register for GST
You must register for GST once your annual GST turnover reaches A$75,000 (A$150,000 for non-profits), and within 21 days of hitting it. Registration requires an ABN (Australian Business Number). Below the threshold registration is optional, though some businesses register voluntarily to claim GST credits on purchases. Ride-share and taxi drivers must register regardless of turnover.
Reporting GST: the BAS
Registered businesses report GST through a Business Activity Statement (BAS), lodged with the ATO monthly, quarterly, or annually depending on turnover (quarterly is most common for small business). On the BAS you report the GST you collected on sales, subtract the GST credits you can claim on business purchases, and remit the net amount.
What this calculator does not cover
Some supplies are GST-free (0%) rather than taxable — most basic fresh food, many health and medical services, and education courses, as well as exports. This calculator applies the flat 10% rate for standard taxable sales and intentionally does not try to model GST-free categories, because whether a specific item qualifies depends on ATO rules. If you are pricing food, health, or education, confirm the item's GST status with the ATO first.
To bill clients with GST applied, the free invoice generator lets you set the tax rate and download a professional PDF in seconds. You can also compare rates on our global VAT / GST calculator.