Goods and services tax (GST) is a broad-based tax of 10% on the value of 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.
A supply of real property is connected with Australia if the real property, or the land to which the real property relates, is in Australia.
Real property includes:
- any interest in, or right over land
- a personal right to call for, or be granted any interest in or right over land
- a licence to occupy land or any other contractual right exercisable over, or in relation to land.
If you rent out residential premises, you are making input taxed supplies for GST purposes.
If you sell residential premises, you are also making input taxed supplies, unless you are selling new residential premises, which include residential premises that have been substantially renovated. If you sell new residential premises that are connected with Australia, those sales are taxable where both of the following apply:
- you make the sales in the course of running your business
- you are registered or required to be registered for GST.
If the sales are taxable, you can claim a GST credit for the GST you paid in the price of your purchases that relate to making those sales.
If the sales are input taxed supplies, you do not have to pay GST on those sales and you are not entitled to claim GST credits for the GST you pay in the price of your purchases that relate to making those sales.
Registering for GST
You must register for GST in Australia if you are carrying on an enterprise and one of the following applies:
- your GST turnover meets or exceeds the registration turnover threshold - the current GST registration turnover threshold is AUS $75,000 or AUS $150,000 if you are a non-profit body
- you provide taxi travel as part of your business, regardless of your GST turnover.
If you do not satisfy these requirements, you do not have to register for GST in Australia. However, if you are carrying on an enterprise, you can voluntarily choose to register if your GST turnover is below the registration turnover threshold.
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For more information about registering for GST, refer to:
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More information
Proposed measures
The government is continually reviewing international tax arrangements. For more information about how potential international legislative changes may affect you, refer to New legislation.
If you need help in applying this information to your own situation, contact us by phone.
Last Modified: Tuesday, 1 March 2011