Goods and Services Tax (GST)
A 10% broad-based consumption tax applied to most goods, services, and other items sold or consumed in Australia.
The Goods and Services Tax (GST) is a 10% tax on the supply of most goods, services, and other items consumed in Australia. It was introduced on 1 July 2000 and is administered by the ATO. Businesses with an annual turnover of $75,000 or more ($150,000 for non-profits) must register for GST, charge it on their sales (output tax), and can claim back GST paid on business purchases (input tax credits).
GST is a value-added tax, meaning each business in the supply chain only remits the net GST (GST collected on sales minus GST paid on purchases). The end consumer ultimately bears the full 10% cost. Businesses report and pay net GST through their Business Activity Statement (BAS), lodged monthly or quarterly depending on turnover.
Not all goods and services are subject to GST. GST-free items include most basic food (fresh fruit, vegetables, meat, bread, milk), health services, education courses, childcare, water and sewerage, and exports. Input-taxed supplies — such as residential rent, financial supplies (interest, fees), and second-hand residential property — are not subject to GST, but the seller cannot claim input tax credits on related purchases.