Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Generally, registered businesses include GST in the price of sales to their customers and claim credits for the GST included in the price of their business purchases.
For more information and an explanation of terms, refer to GST for small business (NAT 3014).
GST is payable on most goods imported into Australia as a taxable importation. You must pay GST on a taxable importation irrespective of whether you are registered for GST. GST on a taxable importation is usually paid to the Australian Customs Service (Customs) before goods are released from Customs control.
For more information about importing goods into Australia, refer to GST and imported goods (NAT 3124).
Goods can also be subject to GST as a taxable supply connected with Australia. That is, you sell goods:
- wholly within Australia – for example, sale of goods to a customer where those goods are delivered, or made available, in Australia
- from Australia – for example, a sale that involves goods being exported from Australia
- to Australia – for example, a sale of goods that involves the goods being brought to Australia and you importing the goods into Australia or installing or assembling the goods in Australia.
If you make taxable supplies, purchases or importations through a resident agent, that is, the resident agent is authorised to make sales, purchases or importations on your behalf:
- the agent is liable to pay GST on the goods purchased, and
- the agent will be responsible for the GST consequences of the sales and purchases.
You make sales and purchases through an Australian resident agent if the agent is authorised to make the sale or purchase on your behalf, thereby binding you to the legal effects of the transaction.
You make importations through a resident agent if goods are imported into Australia and the agent enters the goods for home consumption on your behalf (that is, the agent is shown as ‘owner’ on the Customs entry form).
For more information about agents, refer to GST and the treatment of supplies made through agents (NAT 11504).
Under the Australian GST system the GST payable on a taxable supply made by a non-resident can be ‘reverse charged’ to the recipient. Reverse charged means that the GST payable on the supply is payable by the recipient rather than the supplier.
You must register for GST in Australia if:
- you are carrying on an enterprise, and
- your annual turnover meets or exceeds the registration turnover threshold of A$50,000 (excluding GST) or A$100,000 (excluding GST) if you are a non-profit body, or
- you provide taxi travel as part of your business regardless of your annual turnover.
If you do not satisfy one or more of these requirements, for example, if you do not make supplies connected with Australia, or your annual turnover from supplies that are connected with Australia is less than the registration turnover threshold, you are not required to register for GST in Australia.
You may choose to register if the turnover of your enterprise is below the registration turnover threshold.
For information on registering for GST, refer to GST registration information for a non-resident.
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Proposed measures
The government is continually reviewing international tax arrangements. For information on how potential international legislative changes may affect you, see New legislation.
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If you need help in applying this information to your own situation, contact us by phone.
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Last Modified: Thursday, 17 May 2007
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