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  • Taxable and 'GST-free' items

    Is GST included in the price of everything you sell?

    If you are registered (or required to be registered) for GST purposes, GST is included in the price of most goods and services you sell to others in the course of your business. These are called 'taxable sales'.

    There are some goods and services which are 'GST-free', meaning you don't have to charge your customer GST. But you can still claim GST credits.

    These 'GST-free' items include:

    • most basic food
    • some education courses, course materials and related excursions
    • some medical, health and care services
    • some medical aids
    • some medicines
    • some goods produced for export
    • some childcare
    • some religious services and charitable activities.

    Example

    Not everything Anh sells in her bakery will attract GST. Here are some examples of basic food she sells that is 'GST-free' (no GST is charged):

    • bread and bread rolls without icing
    • bottled drinking water
    • fruit juice containing at least 90% by volume of juice
    • milk.

    Here are some examples of food she sells that does have GST ('taxable sales'):

    • sandwiches
    • cakes, slices, pastries, pies and sausage rolls
    • soft drinks and flavoured milk
    • platters of prepared food.

    If Anh is not sure, she checks the ATO's English publication GST food guide (NAT 3338)

    End of example
      Last modified: 30 Nov 2012QC 26712