Australian GST — Complete Guide for Business Owners
The Goods and Services Tax (GST) is a 10% broad-based tax on most goods and services sold or consumed in Australia, introduced on 1 July 2000. For any Australian business at or approaching the $75,000 annual turnover threshold, understanding GST is essential for compliance and accurate quoting.
GST Registration Thresholds
| Business Type | Must Register When | BAS Frequency |
|---|---|---|
| Standard business | Turnover reaches $75,000/year | Quarterly (or monthly) |
| Non-profit organisation | Turnover reaches $150,000/year | Quarterly |
| Rideshare / taxi driver | First fare (any turnover) | Quarterly |
| Voluntary registration | Any time below threshold | Quarterly |
GST Quick Reference Table
| Ex-GST Amount | GST (10%) | Total Inc-GST |
|---|---|---|
| $100 | $10.00 | $110.00 |
| $500 | $50.00 | $550.00 |
| $1,000 | $100.00 | $1,100.00 |
| $5,000 | $500.00 | $5,500.00 |
| $10,000 | $1,000.00 | $11,000.00 |
GST-Free vs Input Taxed Supplies
Not all Australian sales attract GST. GST-free supplies include: basic food (fresh produce, bread, meat, milk), medical and dental services, most educational services, childcare, and exports. Input taxed supplies (which are different — no GST charged but no GST credits claimable either) include: residential rent, financial services, and the sale of existing residential property.
Claiming GST Credits (Input Tax Credits)
As a GST-registered business, you can claim back the GST included in your business purchases. This is reported on your BAS (Business Activity Statement) lodged quarterly with the ATO. The net GST payable is: GST you collected on sales minus GST credits on purchases. If your credits exceed your collected GST, the ATO refunds the difference.