What is GST (Goods and Services Tax)?
GST is a flat 10% tax on most goods, services and other supplies in Australia. Businesses with turnover of A$75,000+ (A$150,000 for non-profits) must register and remit GST quarterly via the Business Activity Statement (BAS).
Current Rate (Quarterly BAS (Q1 Jul–Sep, Q2 Oct–Dec, Q3 Jan–Mar, Q4 Apr–Jun))
10% standard. GST-free: most basic food, healthcare, education, exports.
Example
An Australian agency invoicing A$50,000 charges A$55,000 (GST-inclusive). If they spent A$11,000 on GST-bearing inputs (A$1,000 GST), they remit A$4,000 to the ATO each quarter.
How GST (Goods and Services Tax) works in Australia
GST registration is mandatory above A$75,000 turnover and voluntary below. Once registered, you charge 10% on taxable supplies, claim input tax credits on GST you pay, and remit the difference quarterly via BAS through myGov / ATO Business Portal.
GST-free supplies (different from input-taxed) include most basic food, health, education, and exports — you charge 0% but can still claim input credits. Input-taxed supplies (residential rent, financial services) charge no GST and you cannot claim input credits.
Related terms
The Business Activity Statement is the quarterly (or monthly for large businesses) form Australian businesses use to report and pay GST, PAYG withholding, PAYG instalments, FBT instalments and Wine Equalisation Tax. Filed via myGov, ATO Online, or accounting software.
The Australian Business Number is an 11-digit identifier issued to businesses by the Australian Business Register. Without an ABN, payers must withhold 47% from your invoice. Required for GST registration, business name registration, and most B2B trading.
Company Tax is the federal tax Australian companies pay on taxable income. The base rate is 25% for 'base rate entities' (turnover under A$50 million and ≤80% passive income). All other companies pay 30%. There is no separate state-level company tax.
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