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  • Goods and services tax gap

    In this document, you'll find information about estimating the goods and services tax (GST) gap. This gap forms a part of our overall tax performance program.

    GST is a consumption tax of 10% on most goods, services and other items sold or consumed in Australia. GST started in Australia in July 2000. Since then, there has been no change to the 10% GST rate.

    Over the last two years there have been some key policy changes, including the extension of GST to:

    • low-value goods below $1,000
    • purchasers of certain property transactions who must withhold an amount from the contract price at the date of settlement
    • imported digital products and services.

    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 2018–19, we estimate the GST net gap to be 8.1% or $5.8 billion. In other words, we estimate that businesses paid over 91% of the total theoretical GST revenue payable in 2018–19.

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      Last modified: 19 Oct 2020QC 57175