GST-Inclusive Price
A price that already includes the 10% GST component. The GST amount is 1/11th of the inclusive price.
A GST-inclusive price is the total price charged to the consumer, with the 10% GST already built in. In Australia, prices displayed to consumers must generally be GST-inclusive (this is required under Australian Consumer Law for advertised prices). To calculate the GST component of an inclusive price, divide by 11. For example, a $110 GST-inclusive item contains $10 of GST and a $100 GST-exclusive price.
When businesses issue tax invoices, they must show the GST amount separately or state that the total price includes GST. For purchases under $1,000, a simplified tax invoice is acceptable (no need to show GST separately). For purchases of $1,000 or more, a standard tax invoice is required with the GST amount explicitly stated.
The formula to convert between GST-inclusive and GST-exclusive prices is straightforward: GST-inclusive = GST-exclusive × 1.1, and GST-exclusive = GST-inclusive ÷ 1.1. The GST component = GST-inclusive ÷ 11. These calculations are essential for businesses when preparing BAS and managing cash flow.