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Terms we use
When we say:
- supplier, we mean a principal supplier of goods or services in the international transport industry such as an airline or a travel agent
- sale or sell, we mean the GST term supply.
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If you sell international passenger transport and associated insurance, in most cases, the sale is GST-free. However, there are some circumstances when they are not GST-free.
You can sell international transport GST-free if you sell it to passengers travelling to or from Australia (by air or sea) and it is from any of the following:
- the last place of departure in Australia to a destination outside Australia
- a place outside Australia to the first place of arrival in Australia
- a place outside Australia to the same or another place outside Australia.
Domestic transport by air
You can sell domestic air transport GST-free if the following applies:
- the domestic transport is part of an itinerary or arrangement leading to international air transport
- the domestic transport formed part of a ticket for international air transport when the arrangement was made, or was cross-referenced to it.
Example
Tanya lives in Brisbane and has booked an overseas trip. She will fly from Brisbane to Sydney to connect with a flight to New York. From New York she will fly to London and then back to Australia, landing in Sydney before flying home to Brisbane. All of Tanya's airfares are GST-free if the Brisbane to Sydney and Sydney to Brisbane flights were booked or committed to at the same time as the international flights.
If the Brisbane to Sydney return flights were booked separately but cross-referenced to the international flights, they are also GST-free.
Domestic transport by sea
Domestic sea transport you sell is GST-free only if you also sell the transport to or from Australia and it is part of a journey from either of the following:
- Australia to a destination outside Australia
- a destination outside Australia to Australia.
Example
Tom and Jane, from Hobart, recently married and will celebrate with an ocean cruise to Fiji that departs from Melbourne. Jill organises a separate sea cruise with a different carrier from Hobart to Melbourne to meet up with the ocean liner.
The domestic sea leg from Hobart to Melbourne is not GST-free because the transport is not provided by the same supplier who transports Tom and Jane to Fiji.
You can sell insurance on international passenger transport GST-free, provided the transport is also GST-free. This includes GST-free domestic transport.
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For more information, refer to GSTR 2000/33 Goods and services tax: international travel insurance.
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You can sell transport (such as coach tours, train transport, hire-cars and ferry passages) to passengers from a place outside Australia to the same or another place outside Australia GST-free.
Example
Rachael has booked a trip to England. The itinerary includes coach tours in England and a cross-channel sea voyage. The transport and insurance are GST-free.
You can sell air transport within Australia GST-free to non-residents, provided they are outside Australia when they purchase it.
Domestic sea transport you sell to non-residents is subject to GST unless the requirements discussed in Domestic transport by sea are met.
Examples
Nils lives in Sweden and arrives in Australia for a holiday. When he booked his international transport in Sweden, he knew he wanted to visit the Northern Territory and purchased a domestic flight to Darwin as part of his itinerary. Nils's entire fare is GST-free.
Sue-Ellen is an American resident and arrives in Australia for a holiday. While in Sydney she decides to spend a week on the Gold Coast and purchases a ticket direct from a domestic airline. Even though Sue-Ellen is a non-resident, GST will be included in the price of her domestic air ticket.
Robyn lives in England and has booked a holiday in Australia. Robyn has decided to fly to Sydney, catch the ferry to Hobart, fly to Brisbane, cruise on a yacht to Cairns and then fly home. Robyn books the entire travel itinerary while she is in England. All the flights are GST-free; however, the ferry to Hobart and the cruise to Cairns are not GST-free.
If you arrange international transport that is GST-free, the sale of the arranging service is also GST-free.
Example
Mac Tours organises package tours to Australia and then arranges for these packages to be sold in the USA. Part of the package involves the use of domestic air transport from Cairns to Dunk Island. Mac Tours has an agreement with Cal Air to transport non-residents from Cairns to Dunk Island. The international air transport is arranged separately.
Arranging the international flights will be GST-free. The domestic air transport will be GST-free if the following applies:
- there is a binding agreement between Mac Tours and Cal Air that confirms the transport of the non-resident passengers from Cairns to Dunk Island when Mac Tours purchases the domestic transport
- the non-resident passengers are outside Australia when the travel is booked.
For more information, you can:
- phone us on 13 28 66, or
- write to us at
If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below:
- TTY users, phone 13 36 77 and ask for the ATO number you need
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need
- internet relay users, connect to the NRS on www.relayservice.com.au and ask for the ATO number you need.
Last Modified: Wednesday, 20 April 2011