Estimates only, for planning purposes — not financial or tax advice. Confirm your exact GST position with the ATO or a registered tax agent.
⏱️ Last reviewed: 6 August 2026 · Written and reviewed by Mohsin Iqbal under our editorial policy and calculation methodology. Tax rules change — always confirm your position with the ATO or a registered tax agent.
📖 Approx. 12 min read💰 10% GST · 2026 ATO thresholds🔄 Updated 6 August 2026
GST is 10% of the price of most goods and services in Australia, unchanged since it was introduced on 1 July 2000.
To find the GST in a GST-inclusive price, divide by 11 — not multiply by 10%, which gives the wrong answer.
You must register for GST once your turnover reaches $75,000 ($150,000 for non-profits) — this threshold hasn't changed since GST began.
Most fresh food, health services, education and exports are GST-free; residential rent and financial services are input-taxed — these are different categories with different consequences.
Your BAS reconciles GST collected (G20) against GST credits on purchases (G30) — the difference is what you pay or get refunded.
Quick Answer
GST in Australia is 10%, added to most goods and services. To add GST to a price, multiply by 1.1. To find the GST already included in a price, divide by 11 — for example, $550 ÷ 11 = $50 GST, leaving $500 ex-GST. Multiplying by 10% instead of dividing by 11 is the single most common GST calculation mistake, and gives the wrong answer. Use the calculator above for instant results, including a full BAS summary.
What Is GST in Australia?
The Goods and Services Tax (GST) is a broad-based 10% consumption tax that applies to most goods and services sold or consumed in Australia. It was introduced on 1 July 2000 and has remained at 10% ever since, unlike VAT rates in many other countries which have moved over time. Registered businesses collect GST from customers and remit it to the Australian Taxation Office (ATO), reporting through a Business Activity Statement (BAS).
How to Calculate GST — Formula and Method
Add GST: Inc-GST price = Ex-GST price × 1.1
Find GST in an inclusive price: GST = Inc-GST price ÷ 11
Find the ex-GST price: Ex-GST price = Inc-GST price ÷ 1.1
General formula for any rate r: GST = Inc-GST price × r ÷ (1 + r)
The "divide by 11" rule works specifically because the GST rate is 10% — dividing by 11 is mathematically equivalent to multiplying by 10/110ths. If you're working with a different rate (say, comparing to another country's consumption tax), the calculator above generalises this correctly using the formula shown.
Step-by-Step: How to Add GST
Start with your ex-GST (pre-tax) price.
Multiply that price by 1.1.
The result is your GST-inclusive price, ready to display or invoice.
Step-by-Step: How to Remove GST
Start with your GST-inclusive total price.
Divide that price by 11 to find the GST component.
Subtract the GST component from the total to get your ex-GST price (or divide the total by 1.1 directly for the same result).
✅ Example: If your invoice is $1,650 including GST, the GST is $150 ($1,650 ÷ 11) and the amount before GST is $1,500 ($1,650 − $150). Try it yourself — enter $1,650 into the calculator above with "Remove GST" selected to confirm.
The GST Formula, Summarised
GST = Inc-GST price ÷ 11 (at the standard 10% rate). This single formula covers the vast majority of everyday GST calculations — invoicing, receipts, and price checks.
BAS GST Calculation, Summarised
For your BAS: divide total GST-inclusive sales by 11 (GST collected), divide total GST-inclusive purchases by 11 (GST credits), then subtract credits from collected to find what you owe or get refunded. See the full BAS section below for the complete G1/G10/G20/G30 breakdown.
GST Inclusive vs GST Exclusive
A GST-inclusive price already has the 10% built in — this is what Australian consumers see on price tags and receipts, since businesses are required to display GST-inclusive prices to the public. A GST-exclusive price hasn't had GST added yet — this is often how businesses quote to other GST-registered businesses, since the buyer can claim the GST back as a credit anyway. Getting these two confused is a common source of pricing and invoicing errors.
Do You Need to Register for GST?
You must register for GST once your GST turnover reaches $75,000 a year ($150,000 for non-profit organisations) — a threshold that has been unchanged since GST was introduced in 2000. GST turnover is based on gross business income (before expenses), calculated on a rolling 12-month basis, looking both backward at what you've already earned and forward at what you reasonably expect to earn. Taxi and ride-sourcing drivers must register regardless of turnover, from their very first dollar of fares.
Threshold
Who It Applies To
$75,000
Most businesses, sole traders, partnerships, companies and trusts
$150,000
Non-profit organisations
No threshold
Taxi and ride-sourcing (rideshare) drivers
You can also register voluntarily below the threshold — worth considering if your clients are GST-registered businesses who can claim input tax credits, or if you have significant GST-inclusive business expenses you'd like to claim back.
GST on BAS — What You Need to Know
Registered businesses report GST through a Business Activity Statement (BAS), reconciling GST collected on sales against GST credits on purchases:
G1 = Total sales (inc. GST)
G10 = Total purchases (inc. GST)
G20 = GST on sales (G1 ÷ 11)
G30 = GST credits on purchases (G10 ÷ 11)
If G20 > G30 → you pay the difference. If G20 < G30 → you receive a refund.
Turnover
Lodgement Frequency
Due Dates
Under $20 million
Quarterly
28 days after quarter end
$20 million or more
Monthly
21 days after month end
Under $75,000 (voluntary registration)
Annual
31 October
GST-Free and Input-Taxed Supplies
Not everything is taxed at 10% — Australian GST law has three categories, each with different consequences for businesses:
Taxable supplies: Everything else — GST applies at 10%, and registered businesses can claim credits on related purchases.
GST-free supplies: Most basic food, health services, education and exports. No GST is charged, but businesses can still claim GST credits on related purchases.
Input-taxed supplies: Residential rent, most financial services (interest, dividends). No GST is charged, and businesses cannot claim GST credits on related purchases — this is the key difference from GST-free.
ℹ️ GST-free and input-taxed both mean "no GST charged," but they're not the same thing. The GST-credit-claiming difference matters a lot for businesses working out their actual GST position.
GST for Sole Traders and Small Business
Sole traders follow exactly the same $75,000 threshold as any other business structure — company, partnership or trust. If your turnover is below the threshold, you're not required to charge GST, but you also can't claim GST credits on your business purchases. Once registered, you need an ABN, must issue tax invoices, and take on regular BAS lodgement obligations. See our Contractor vs Employee Calculator if you're weighing up how you're classified for tax purposes more broadly, and our PAYG Withholding Calculator if you also employ staff and need to work out tax withheld from their pay alongside your GST obligations.
Tax Invoice Requirements
For GST-inclusive purchases over $82.50, you need a valid tax invoice to claim a GST credit — a standard receipt isn't enough. The tax invoice must show the supplier's ABN, a description of the goods or services, the date, the total price, and either the GST amount shown separately or a statement that the price includes GST. For supplies of $1,000 or more (GST-inclusive), the tax invoice must additionally show the buyer's identity or ABN. If you need to create compliant invoices yourself, our free Australian Invoice Builder handles the ABN format and GST fields automatically, with PDF export.
Worked Examples
Task
Formula
Example ($550 GST-inclusive)
Find GST component
Price ÷ 11
$550 ÷ 11 = $50 GST
Find ex-GST price
Price ÷ 1.1
$550 ÷ 1.1 = $500
Add GST to ex-GST price
Price × 1.1
$500 × 1.1 = $550
Common Mistakes
Multiplying by 10% instead of dividing by 11. $220 × 10% = $22 (wrong). $220 ÷ 11 = $20 (correct). This single error is behind more incorrect BAS figures than any other.
Confusing GST-free with input-taxed. Both mean no GST is charged, but only GST-free supplies let you claim credits on related purchases.
Not registering once required. Waiting until you notice you've crossed $75,000 rather than monitoring projected turnover can mean backdated GST liability.
Issuing a regular receipt instead of a tax invoice for purchases over $82.50, which prevents the buyer from claiming a GST credit.
Forgetting the $1,000 purchaser-detail rule for larger tax invoices, which need the buyer's identity or ABN in addition to the standard fields.
Frequently Asked Questions
A 10% broad-based consumption tax on most goods and services, introduced on 1 July 2000. Registered businesses collect it and remit it to the ATO via a Business Activity Statement.
10%, unchanged since GST was introduced in 2000. It applies to most goods and services, with exceptions for GST-free and input-taxed supplies.
To add GST, multiply the ex-GST price by 1.1. To find the GST already included in a price, divide by 11 — not multiply by 10%, which gives an incorrect, slightly-too-high result.
Divide the GST-inclusive total by 1.1 to get the ex-GST price, or divide by 11 to find just the GST component. For example, $550 ÷ 1.1 = $500 ex-GST, and $550 ÷ 11 = $50 GST.
GST = Inc-GST price × 10 ÷ 110 (equivalent to dividing by 11 at the 10% rate). Ex-GST price = Inc-GST price ÷ 1.1. Inc-GST price = Ex-GST price × 1.1.
A GST-inclusive price already has the 10% built in — what consumers see on price tags. A GST-exclusive price hasn't had GST added yet — often used when businesses quote to other GST-registered businesses.
You must register once your GST turnover reaches $75,000 a year ($150,000 for non-profits). Taxi and ride-sourcing drivers must register regardless of turnover. You can also register voluntarily below the threshold.
$75,000 for most businesses, $150,000 for non-profit organisations. This threshold has been unchanged since GST began in 2000, and applies equally to sole traders, partnerships, companies and trusts.
You may face backdated GST liability from the date you should have registered, plus potential penalties and interest. Registration is required within 21 days of becoming aware your turnover will meet the threshold.
Quarterly for most businesses (turnover under $20 million), due 28 days after each quarter ends. Businesses with turnover of $20 million or more lodge monthly. Voluntarily registered businesses under $75,000 can often lodge annually.
Only if their turnover is genuinely below $75,000 and they haven't voluntarily registered. Once registered — mandatory or voluntary — GST must be charged on all taxable supplies, regardless of business structure.
Most basic food (fresh produce, meat, bread), most health and medical services, education, childcare, and most exported goods and services. GST-registered businesses can still claim GST credits on purchases related to GST-free sales.
A supply where no GST is charged, but — unlike GST-free supplies — the seller also can't claim GST credits on related purchases. Common examples are residential rent and most financial services like interest and dividends.
Yes, if you're GST-registered and the purchase relates to your taxable or GST-free sales, and you hold a valid tax invoice for purchases over $82.50. You can't claim credits on purchases relating to input-taxed supplies.
No — only GST-registered businesses can legally charge GST. Charging GST while unregistered is not permitted, since you have no ABN entry authorising you to collect it on the ATO's behalf.
A tax invoice is required to claim a GST credit for purchases over $82.50 (GST-inclusive) — a regular receipt isn't sufficient. It must show the supplier's ABN, a description of goods or services, the date, total price, and the GST amount or a statement that GST is included.
Divide your total GST-inclusive sales by 11 for GST collected (G20), and your total GST-inclusive purchases by 11 for GST credits (G30). The difference between them is what you pay (if G20 is higher) or get refunded (if G30 is higher).
Conceptually yes — both are consumption taxes added to goods and services. The specific rate, thresholds and exemptions differ by country; Australia's GST has remained at a flat 10% since 2000.
Yes, if their GST turnover reaches $75,000 — the same threshold applies regardless of whether sales happen online or in person. Additional rules can apply to overseas sellers and low-value imported goods.
Yes — GST applies to most services in the same way it applies to goods, once you're registered. There's no general services exemption; specific GST-free categories (like some health and education services) apply regardless of the goods/services distinction.
Tax invoices for purchases, records of sales, and BAS lodgement records, generally for at least 5 years from when the record was prepared or the transaction completed, whichever is later.
Yes. This can make sense if your clients are GST-registered (they can claim credits on what you charge) or if you have significant GST-inclusive expenses you'd like to claim back. If you register voluntarily, you must generally stay registered for at least 12 months.
GST is a consumption tax on goods and services, collected by businesses and remitted to the ATO. Income tax is a separate tax on your personal or business income. They're calculated, reported and paid completely independently of each other.
Once registered, you must charge 10% GST on taxable sales, which either increases your price to customers or reduces your margin if you absorb it. You can offset this by claiming GST credits on your own business purchases.
Your gross business income from taxable and GST-free sales over a rolling 12-month period, calculated before expenses. It excludes input-taxed sales like residential rental income and most financial supplies.
GST in Australia is a flat 10%, unchanged since 2000. Add it by multiplying by 1.1; find it inside a price by dividing by 11, not multiplying by 10%. Registration is required once your turnover reaches $75,000 ($150,000 for non-profits), and your BAS reconciles GST collected against GST credits to determine what you pay or get refunded. Use the calculator above for instant results, including a full BAS quarterly summary.