Show download pdf controls
  • Travel within Australia - non-residents

    Air travel within Australia is GST-free for non-residents provided they are outside Australia when they purchase it.

    Domestic sea transport is subject to the same GST conditions for non-residents as for Australian residents.

    Example: GST-free travel

    Nils lives in Sweden and arrives in Australia for a holiday. When he booked his international transport in Sweden, he knew he wanted to visit the Northern Territory and purchased a domestic flight to Darwin as part of his itinerary. Supply of the entire transport including the domestic air travel to Nils is GST-free.

    Example: GST payable

    Sue-Ellen is an American resident and arrives in Australia for a holiday. While in Sydney she decides to spend a week on the Gold Coast and purchases a ticket direct from a domestic airline. Even though Sue-Ellen is a non-resident, GST will be included in the price of her domestic air ticket.

    Example: Mixture

    Robyn lives in England and has booked a holiday in Australia. Robyn has decided to fly to Sydney, catch the ferry to Hobart, fly to Brisbane, cruise on a yacht to Cairns and then fly home. Robyn books the entire travel itinerary while she is in England. Supply of all air travel to Robyn is GST-free; however, supply of the ferry to Hobart and the cruise to Cairns are not GST-free as they are not domestic legs of an international flight or sea voyage.

    End of example

    Travel within Australia is also GST-free for non-residents if it is arranged within Australia as part of a package that is purchased overseas.

    Example: Package tour for non-resident tourists

    Mac Tours is an Australian business that organises package tours to Australia and then arranges for these packages to be sold in the USA. Part of the package involves the use of domestic air transport from Cairns to Dunk Island. Mac Tours has an agreement with Cal Air to transport non-residents from Cairns to Dunk Island. The international air transport is arranged separately.

    Supply of the international flights is GST-free. Supply of the domestic air transport will be GST-free if the following applies:

    • there is a binding agreement between Mac Tours and Cal Air that confirms the transport of the non-resident passengers from Cairns to Dunk Island when Mac Tours purchases the domestic transport
    • the non-resident passengers are outside Australia when the travel is booked.
    End of example

    See also:

      Last modified: 06 Apr 2017QC 16253