How Australian GST works
The GST rate in Australia is 10%, meaning GST is 1/11th of the amount you charge for sales connected with Australia.
If GST applies
Sales connected with Australia
GST applies to sales connected with Australia including goods, services, real property or other things. Examples include:
- digital products, such as software or eBooks, to Australian consumers
- imported services, such as professional consulting services, to Australian consumers
- low value goods imported into Australia with a customs value of A$1,000 or less when the price is first agreed with the consumer (except for tobacco products or alcoholic beverages)
- other imported goods made available for sale in Australia
- real property such as land, residential and commercial property in Australia.
For more information and rulings about sales connected to Australia, see:
- GSTR 2017/1 Goods and services tax: making cross-border supplies to Australia customers
- LCR 2018/1 GST on low value imported goods
- LCR 2018/2 GST on supplies made through electronic distribution platforms
- LCR 2018/3 When is a redeliverer responsible for GST on a supply of low value imported goods?
Non-resident businesses and your GST turnover
You must register for GST in Australia if both of the following apply:
- You are carrying on a business or enterprise.
- Your GST turnover from sales connected with Australia from your enterprise is equal to, or greater than the registration turnover threshold of A$75,000 (or A$150,000 if you are a non-profit organisation).
GST turnover includes the combined value of:
- imported services and digital products to Australian consumers
- low value imported goods to consumers.
If all of these sales are made through an online marketplace or electronic distribution platform you may not need to register for GST.
For more information about sales made through an electronic distribution platform, see if you are an EDP operator.
You can choose to register for GST voluntarily if your GST turnover is less than A$75,000 ($150,000 for non-profit organisations).
If you choose to register, you should stay registered for at least 12 months.
Work out your GST turnover
Your GST turnover is your total business income from Australian sales, (not your profit), minus any:
- sales of imported services and digital products or low value imported goods to Australian businesses registered for GST
- sales not connected with Australia
- GST included in your sales
- sales that aren't for payment and aren't taxable
- sales not connected with an enterprise you run
- input-taxed sales you make.
You reach the GST turnover threshold if either:
- your 'current GST turnover' (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 or more for non-profit organisations)
- your 'projected GST turnover' (your total turnover for the current month and the next 11 months) is likely to be $75,000 or more ($150,000 or more for non-profit organisations).
GST definitions will help if you don't know what terms mean.
Identifying GST-registered business customers
Ensure your customers are Australian GST-registered businesses by:
- getting their Australian business number (ABN), and
- a statement, that they are registered for GST.
You can confirm your customer has an ABN and is registered for GST by:
- searching for their ABN on the ABN Lookup toolExternal Link
- integrating ABN Lookup validation and data into your own applications using the free ABN Lookup web servicesExternal Link.
GST registration
To ensure you meet your GST obligations, make sure you view the relevant registration requirements.
GST registration options
If you are a non-resident business, you can choose from simplified or standard registration.
Simplified GST registration is not available if you are a non-resident business that imports goods and warehouses them in Australia before selling them online, directly or through an electronic distribution platform. You will have a GST obligation for the goods sold because the goods are located in Australia. Instead, standard GST registration will allow you to meet your GST obligations and also allow you to claim GST credits you incur on the taxable importation of the goods.
You can use:
- simplified GST registration if you
- don't need an ABN
- make sales connected with Australia
- make sales that are imported services, digital products or low value imported goods
- want to electronically register, report and pay quickly and easily
- don't need to claim GST credits (including credits for taxable importations).
- standard GST registration if you
- have or need an ABN
- make sales connected with Australia
- need to issue tax invoices
- want to claim GST credits.
- standard GST-only registration if you
- aren't entitled to an ABN
- don't make sales connected with Australia
- want to claim GST credits.
Change your type of registration
You can change your type of registration between simplified GST and standard GST, but you can't be registered for both at the same time. If you hold an:
- ABN, you can't hold an ATO reference number (ARN)
- ARN, you can't hold an ABN.
To discuss changing your registration, contact us.
GST definitions will help if you don't know what terms mean.
Cancel your registration
If you're a non-resident business, you can cancel your GST registration or ABN.
Cancel your GST registration
To cancel:
- your simplified GST registration:
- write to us at australiagst@ato.gov.au, or
- contact your Australian tax agent.
- your standard GST registration (including standard GST-only registration):
- refer to Cancelling your GST registration, or
- contact your Australian tax agent.
You must cancel your registration within 21 days of:
- selling or closing your business
- changing your business structure, such as from a partnership to a company, unless the old entity carries on another business.
When cancelling your GST registration:
- an authorised contact needs to notify us
- you must lodge a final GST return or BAS and ensure all sales are reported
- you must pay any outstanding amount due
- only cancel the relevant ARN or GST registration
- cancel on the last date of your reporting period and if you are backdating your cancelation tell us why.
Cancel your ABN
If you are using standard registration and have to cancel your GST registration because you restructured your business, sold it or closed it down, you must also ask us to cancel your ABN registration by contacting usExternal Link.
If you decide to cancel your GST registration because you're below the GST turnover threshold, you may also choose to cancel your ABN registration.
GST lodgment and payment options
Based on your GST registration type, there are different methods to lodge and pay your BAS.
For lodgment options refer to:
For payment options refer to:
How non-resident entities can register for GST in Australia, with the ATO.