How GST works

How GST works

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

Some things don’t have GST included, these are called GST-free sales.

You can:

• use the GST calculatorExternal Link on ASIC's MoneySmart website to calculate GST and work out how much GST is included in a sale.

What registered businesses do

Generally, businesses and other organisations registered for GST will:

• include GST in the price they charge for their goods and services
• claim credits for the GST included in the price of goods and services they buy for their business.

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What you need to do for GST

If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing) – you need to:

• register for GST
• work out whether your sales are taxable (that is, subject to GST, and not exempted because they are GST-free or input-taxed) and include GST in the price of your taxable sales
• issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
• claim GST credits for GST included in the price of your business purchases
• account for GST on either a cash or non-cash basis and put aside the GST you collected so you can pay it to us when due
• lodge activity statements or annual returns to report your sales and purchases, and pay GST to us or receive a GST refund.

You can use the GST calculatorExternal Link on ASIC's MoneySmart website to calculate GST and work out how much GST is included in a sale.

Explains how GST works and what you need to do to meet your GST obligations.