Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. If your business is registered for GST, you include GST in the price of goods, services and other things you sell in the course of your business. This includes the disposal (by sale or otherwise transferring ownership) of capital assets used in your business, such as motor vehicles and business equipment. These are called taxable supplies.
GST may be included in the price of purchases (including importations) you make for your business. However, if you are registered for GST, you can generally claim a credit for any GST included in the price you pay for things for your business. This is called an input tax credit.
While GST is paid at each step in the supply chain, businesses don't actually bear the economic cost of the tax. This is because they include GST in the price of the goods and services they sell and can claim credits for most GST included in the price of goods and services they buy. The cost of GST is borne by the final consumer, who can't claim GST credits.
There are other types of sales where GST is not included in the price. These include:
- input-taxed supplies - these include financial supplies, such as loans, and residents' rents
- GST-free supplies - these include basic foods, such as fruit, milk and bread, exports, and some health and education courses.
For more information and an explanation of terms, refer to
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Do you need to register for GST?
You must register for GST in Australia if you are carrying on an enterprise and either of the following applies:
- your GST turnover meets or exceeds the registration turnover threshold of A$75,000 (excluding GST) or A$150,000 (excluding GST) if you are a non-profit body
- you provide taxi travel as part of your business, regardless of your GST turnover.
If you do not meet one or more of these requirements, you do not have to register for GST in Australia. For example, if you do not make supplies connected with Australia or your GST turnover from supplies that are connected with Australia is below the registration turnover threshold, you do not have to register. However, you can choose to register for GST if your turnover is below the registration turnover threshold.