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  • Goods and services tax gap

    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) for a defined period, typically a financial year.

    GST started in Australia in July 2000. Since then, there has been no change to the 10% GST rate. There have been some changes to improve the coverage of the tax including the recent 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.

    For the 2016-17 year, we have estimated the GST net gap to be $5.3 billion (or 7.9%).

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      Last modified: 26 Oct 2018QC 57175