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Australia GST Guide

the Australian Goods and Services Tax (GST). The guide covers: the GST rate of 10% — the GST is imposed on the supply of the most goods and services in Australia; the GST was introduced on 1 July 2000 at the rate of 10% (the rate has not changed since the introduction); the GST registration threshold — the GST registration is required if: (a) the GST turnover (the "current GST turnover" or the "projected GST turnover") is $75,000 or more (the "GST registration threshold"), OR (b) the GST turnover is $150,000 or more for the non-profit organisations (the "non-profit threshold"), OR (c) the business provides the "taxi travel" or the "ride-sourcing" (the "taxi and ride-sourcing services" — the Uber, the Didi, the Ola, the hire car with the driver) — the GST registration is required regardless of the turnover; the business can also register voluntarily (the "voluntary GST registration") if the turnover is below the threshold; the GST-free supplies (the "GST-free supplies") — the supplies that are NOT subject to the GST include: (a) the basic food (the "basic food" — the milk, the bread, the eggs, the fruit, the vegetables, the meat, the cereal, the cheese, the tea, the coffee, the baby food, the infant formula), (b) the health services (the "health services" — the medical services, the dental services, the hospital treatment, the ambulance services, the disability services), (c) the education (the "education" — the school courses, the tertiary courses, the English language courses for the migrants, the child care), (d) the child care (the "child care" — the approved child care services), (e) the exports (the "exports" — the goods exported from Australia within 60 days, or the services supplied to the non-residents), (f) the religious services (the "religious services" — the supplies by the religious institutions), (g) the water, the sewerage, and the drainage (the "water and sewerage"), (h) the cars for the disabled (the "cars for the disabled"); the input-taxed supplies (the "input-taxed supplies") — the supplies that are subject to the GST but the supplier CANNOT claim the GST credits for the inputs include: (a) the residential rent (the "residential rent" — the rent from the residential properties), (b) the financial supplies (the "financial supplies" — the loans, the mortgages, the bank accounts, the credit cards, the insurance, the superannuation, the shares), (c) the sale of the residential premises (the "sale of the residential premises" — the sale of the existing residential properties, but NOT the new residential premises), (d) the precious metals (the "precious metals" — the gold, the silver, the platinum); the GST credits (the "input tax credits" — the "ITCs") — the registered business can claim the GST credits for the GST included in the price of the purchases (the "creditable acquisitions") used for the business purposes; the GST credits are claimed on the Business Activity Statement (the "BAS"); the business must hold the "tax invoice" (the "tax invoice") to claim the GST credits; the Business Activity Statement (BAS) — the BAS is the form used to report and pay the GST to the ATO; the BAS is lodged: (a) monthly (for the large businesses with the GST turnover above $20 million), OR (b) quarterly (for the small and the medium businesses — the default option), OR (c) annually (for the businesses with the GST turnover below $75,000 that are voluntarily registered); the BAS must be lodged by the 21st day of the month following the end of the tax period (the 21st of the month for the monthly lodgers, the 28th of the month for the quarterly lodgers if lodged online); the GST on the imported goods (the "GST on imports") — the GST is payable on the goods imported into Australia at the rate of 10% of the "customs value" plus the duty plus the transport and the insurance (the "CIF value"); the GST on the low-value imported goods (the "low-value imported goods" — the goods valued below $1,000) is collected by the overseas vendors (the "non-resident vendors") under the "GST on low-value imported goods" rules (the "supplier registration"); the GST for the non-residents (the "non-resident GST") — the non-resident businesses that supply the goods or the services to the Australian consumers (the "B2C supplies") may be required to register for the GST; the non-resident businesses that supply the "digital services" or the "imported services" to the Australian consumers are subject to the GST at 10% (the "digital services GST" and the "imported services GST"); the non-resident businesses can register for the GST using the "simplified GST registration" (the "non-resident GST registration"). All amounts in Australian Dollars (AUD). For related reading, see our Starting a Business Guide → and Corporate Tax Guide →.

GST Registration Thresholds

  • $75,000 — standard: The GST registration is mandatory if the GST turnover is $75,000 or more. The "GST turnover" includes the GST-free supplies and the input-taxed supplies but excludes the supplies that are not connected with Australia. The business must register within 21 days of exceeding the threshold.
  • $150,000 — non-profit: The GST registration is mandatory for the non-profit organisations if the GST turnover is $150,000 or more. The non-profit organisations can also register voluntarily. The non-profit organisations can claim the GST credits for the purchases used for the non-profit activities.
  • Taxi / ride-sourcing: The GST registration is mandatory for the taxi travel and the ride-sourcing services regardless of the turnover. The Uber drivers, the Didi drivers, the Ola drivers, and the hire car operators must register for the GST from the first dollar of the income.

For the BAS lodgement and the PAYG instalments, see our Starting a Business Guide →.

GST-Free vs Input-Taxed

  • GST-free: The GST-free supplies are the supplies that are NOT subject to the GST, but the supplier CAN claim the GST credits for the inputs. The examples include: the basic food, the health services, the education, the child care, the exports, the water and the sewerage, the religious services, the cars for the disabled. The GST turnover includes the GST-free supplies for the purposes of the GST registration threshold.
  • Input-taxed: The input-taxed supplies are the supplies that are NOT subject to the GST, but the supplier CANNOT claim the GST credits for the inputs. The examples include: the residential rent, the financial supplies (the loans, the bank accounts, the insurance, the superannuation), the sale of the existing residential premises, the precious metals. The supplier cannot claim the GST credits for the costs related to the input-taxed supplies.

For the GST on the residential property, the new residential premises, and the margin scheme, see our Property Tax Guide →.