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  • Domestic travel - Australian residents

    Air travel

    You can sell domestic air transport GST-free to Australian residents if it:

    • is part of an itinerary or arrangement leading to international air transport
    • formed part of, or was cross-referenced to, a ticket for international air transport when the arrangement was made.

    Example: GST-free air travel

    Tanya lives in Brisbane and has booked an overseas trip. She will fly from Brisbane to Sydney to connect with a flight to New York. From New York she will fly to London and then back to Australia, landing in Sydney before flying home to Brisbane. All of Tanya's air travel supplied is GST-free if the Brisbane to Sydney and Sydney to Brisbane flights were booked or committed to at the same time as the international flights.

    If the Brisbane to Sydney return flights were booked separately but cross-referenced to the international flights, they are still GST-free.

    End of example

    Sea travel

    Domestic sea transport is wholly GST-free for Australian residents if it is part of a journey from:

    • Australia to a destination outside Australia, and the transport is provided by the same supplier who transports the passenger from Australia.
    • a destination outside Australia to Australia, and the transport is provided by the same supplier who transports the passenger to Australia

    Example: International cruise and domestic voyage

    Tom and Jane, from Hobart, recently married and will celebrate with an ocean cruise to Fiji that departs from Melbourne. Jill organises a separate sea cruise with a different carrier from Hobart to Melbourne to meet up with the ocean liner.

    GST must be paid on the sea leg from Hobart to Melbourne as it is domestic travel and is not provided by the same supplier who transports Tom and Jane to Fiji.

    End of example

    See also:

      Last modified: 06 Apr 2017QC 16253