GST-Exclusive Price
The base price of a good or service before 10% GST is added.
A GST-exclusive price is the base price of a good or service before the 10% GST is added. While consumer-facing prices in Australia are typically displayed GST-inclusive, business-to-business transactions often quote prices GST-exclusive, with GST added as a separate line item on the invoice. This is common in wholesale, professional services, and construction industries.
To convert a GST-exclusive price to a GST-inclusive price, multiply by 1.1. For example, a service quoted at $1,000 + GST will cost $1,100 in total, with $100 being the GST component. If you're GST-registered, the $100 GST is claimable as an input tax credit, making the effective cost to your business $1,000.
When comparing quotes from different suppliers, always compare on the same basis (either all GST-inclusive or all GST-exclusive) to avoid confusion. Some industries, particularly construction and trades, commonly quote ex-GST, while retail and consumer services must display inclusive prices. Software accounting packages typically handle GST calculations automatically when you select the appropriate tax code.
How it works
A GST-exclusive price is the base amount before the 10% GST is layered on top, and it's the pricing convention businesses commonly use when quoting other businesses, since a GST-registered buyer can usually claim the GST back anyway and doesn't experience it as a real cost. Converting a GST-exclusive figure to the final amount payable is straightforward multiplication: multiply by 1.1, since the exclusive price represents the base 100% and GST adds another 10% on top of it.
This convention shows up most in trades, construction, wholesale, and professional services, where a quote of $1,000 plus GST is standard and the GST is broken out as its own line on the resulting invoice rather than folded into a single figure. For a GST-registered business receiving such an invoice, the GST paid becomes an input tax credit that offsets what it collects on its own sales — so a $1,000 plus GST quote effectively costs the business $1,000 once the $100 GST is recovered, even though $1,100 changes hands at the time of payment.
The main practical risk with GST-exclusive quoting is comparing prices inconsistently — stacking a GST-exclusive trade quote against a GST-inclusive retail price without adjusting for the 10% difference makes the exclusive quote look cheaper than it really is once GST is added. This matters especially when comparing a business quote, typically ex-GST, against a consumer-facing price, typically inclusive, for the same kind of work, or when a business that isn't GST-registered receives a GST-exclusive quote and, unable to claim the GST back, needs to treat the full GST-inclusive amount as its real cost.
Example: converting a trade quote to the total payable
A contractor quotes $5,000 plus GST for a renovation job.
The GST component is $5,000 × 10% = $500, so the total payable is $5,000 + $500 = $5,500. If the client is GST-registered and can claim the $500 back as an input tax credit, the effective cost to them is still $5,000; if they're not registered, the real cost is the full $5,500.
Calculate it yourself
Open calculator →Related Terms
Goods and Services Tax (GST)
A 10% broad-based consumption tax applied to most goods, services, and other items sold or consumed in Australia.
GST-Inclusive Price
A price that already includes the 10% GST component. The GST amount is 1/11th of the inclusive price.
Input Tax Credit
A credit for GST included in the price of goods and services purchased for business use, offsetting GST collected on sales.
Business Activity Statement (BAS)
A form lodged with the ATO to report and pay GST, PAYG withholding, PAYG instalments, and other business tax obligations.