Comparing the New Zealand and Australian tax system

When GST is not payable

New Zealand

Australia

Certain goods and services are not liable for GST, either because they are zero-rated or exempt from GST. Exempt supplies include supplies of residential accommodation and many financial services, such as paying and collecting interest. Some supplies, however, are within the GST tax net but nevertheless the rate applying to them is zero and not 15%. That is, they are said to be zero-rated. For more information, refer to Exempt supplies and Zero-rated supplies.

Some transactions are outside the scope of GST - for example, genuine gifts or supplies made by an entity that is not 'registered or required to be registered' for GST. For entities that are registered or required to be registered for GST, they may make supplies where no GST is payable. These include supplies which are GST-free, which means there is no GST liability on the supply but the supplier can claim GST credits for GST on purchases it has made. GST-free supplies can include certain: exports health supplies food supplies education supplies international travel charitable activities. There are also 'input taxed' supplies - which is where there is no GST liability on the supply. However, the supplier cannot claim GST credits for GST on purchases it made. Input taxed supplies include: financial supplies supplies of residential rent supplies of residential premises (with some exceptions, including new residential premises) certain fundraising activities.

Sections within Goods and services tax

• When GST is not payable
• The form to use when completing your GST
• For further information on GST