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  • Goods and services tax gap 2017-18

    This information is for historical purposes only. If you need previously published content for past estimates, email

    Goods and services tax (GST) is a consumption tax of 10% on most goods, services and other items sold or consumed in Australia. The GST tax gap is an estimate of the difference between the amount of GST payable under the law (theoretical GST liability) and the amount actually collected by us (actual GST revenue).

    GST started in Australia in July 2000. Since then, there has been no change to the 10% GST rate. There have been some policy changes, including the extension of GST to:

    • imported digital products and services (effective from 1 July 2017)
    • low-value goods below $1,000 (effective from 1 July 2018).

    Generally, businesses and other organisations registered for GST will:

    • include GST in the price they charge for their goods and services
    • claim credits for the GST included in the price of goods and services they buy for their business.

    Estimate of the tax gap

    For 2017–18, we estimate the GST net gap to be 7.3% or $5 billion. In other words, we estimate that businesses paid over 92% of the total theoretical GST revenue payable. Most of this was paid voluntarily.

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      Last modified: 06 May 2021QC 65542