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  • GST for small business

    The goods and services tax (GST) is a tax of 10% on most goods and services sold in Australia.

    If you run a business, you are likely to have some GST obligations.

    If your business is registered for GST, you need to:

    • include GST in the price of sales to your customers
    • claim credits for the GST included in the price of purchases for your business.

    This means, if your business is registered for the GST, your customers pay the cost you charge plus 10% extra. This 10% is the GST. When GST applies, you should always include GST in the price of your sale.

    You then pay the 10% GST amounts, usually four times each year. To do this, we send you a business activity statement (BAS), which you need to fill in and send back to us.

    Example: charging customers GST

    Anh runs a small bakery selling sandwiches, cakes, hot foods and drinks. She charges her customers an extra 10% to cover the GST. For example, she sells salad sandwiches for $5.50 including GST. She keeps $5 and sends the GST amount of 50 cents to the ATO when she fills in her next BAS.

    End of example

    Media: How GST works and when to register for GST
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiunj6q7e3External Link (Duration: mm:ss)

    Registered tax or BAS agent

    A tax or BAS agent registered with the Tax Practitioners Board may be able to help you with your tax obligations.

    Search the TPB registerExternal Link for a registered agent.

    Find out more:

    See also:

    • More topics and information in Your language
    • More detailed information about GST is available in English
      Last modified: 23 Jul 2019QC 59733