GST system in Australia
GST is a consumption tax of 10% on certain goods, services and other items sold or consumed in Australia. Generally, businesses and other organisations that are registered for GST will:
- include GST in the price they charge for their goods and services, and
- claim credits for the GST included in the price of goods and services they buy for their business.
In 2013–14, there were 2.6 million businesses registered for GST in Australia and they lodged over 10 million business activity statements (BAS). Total remittances amounted to $102 billion, while refunds of GST totalled $51 billion, resulting in net GST receipts of around $51 billion.
There has been no change to the GST rate since its inception in July 2000, nor has there been any significant change to the GST base, apart from initial transitional measures. Therefore, growth in GST revenue has largely been driven by growth in the value of consumption subject to GST in the economy and by changes in compliance levels.