GST calculator
Just enter the amount to calculate Australian goods and services taxPrice
Results
Amount | |
---|---|
Price (ex GST) | $272.73 |
GST | $27.27 |
Price (inc GST) | $300.00 |
Understanding the Goods and Services Tax (GST) in Australia
In Australia, a multi-tiered sales tax known as the Goods and Services Tax (GST) is imposed by the Federal Government. Established on 1 July 2000 by the Howard Liberal administration, this 10% tax applies to the majority of goods and services offered by GST-registered businesses.
Exceptions to GST
While most items are subjected to the GST, there are certain exceptions. For instance, key food items, specific medical and educational services, and exports are typically GST-free. Additionally, other categories like residential accommodation and financial services fall under the input-taxed bracket. Certain government-related charges are either exempt from the GST or lie outside its purview.
Revenue Distribution
Funds generated from this tax are channeled to the individual states within Australia. It's notable that while the federal government imposes the GST, state governments do not have a separate sales tax. They do, however, impose duties on certain transactions, such as stamp duties.
Implications for Businesses
Essentially, if a business is GST-registered, a 10% GST rate should be incorporated into the price of most goods and services they sell. Concurrently, these businesses can offset this by claiming GST credits on their operational expenses. The net GST amount— which is the difference between the GST charged on sales and GST credits— needs to be remitted to the Tax Office at regular intervals.
Special Cases:
- Businesses selling GST-free items won't be liable for GST on these sales, but they can claim GST credits.
- For businesses trading in input taxed goods or services, while they aren't required to charge GST on these sales, they can't claim GST credits on the input purchases.
How to Use the GST Calculator
- Enter the amount you want to calculate GST for.
- Select whether the amount is GST inclusive or exclusive.
- Click 'Calculate' to see the GST amount and the total.
Frequently Asked Questions
What is GST in Australia?
GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia.
How do I add GST to a price?
Multiply the amount by 1.1 or use our calculator to instantly add GST.
How do I remove GST from a price?
Divide the amount by 1.1 or use our calculator to instantly remove GST.
Who needs to charge GST?
Businesses and freelancers with a turnover of $75,000 or more must register for GST and include it in their prices.
Is this GST calculator free?
Yes! Our GST calculator is 100% free to use for anyone.
Where can I learn more about GST?
See the ATO's GST guide for full details.
When do I need to register for GST in Australia?
You must register for GST if your business or enterprise has a GST turnover of $75,000 or more. Non-profit organisations have a higher threshold of $150,000. You can also choose to register voluntarily if you are below the threshold.
Can I claim GST credits on business purchases?
Yes, if you are registered for GST, you can claim GST credits (input tax credits) for the GST included in the price of goods and services you buy for your business. Keep valid tax invoices as proof.
How do I report and pay GST to the ATO?
Registered businesses must report and pay GST to the Australian Taxation Office (ATO) by lodging a Business Activity Statement (BAS), usually quarterly or monthly.
Are there penalties for not registering for GST?
Yes, failing to register for GST when required can result in penalties and interest charges from the ATO. It's important to register as soon as you reach the threshold.
Is GST charged on imported goods?
GST generally applies to imported goods valued at AUD $1,000 or less, as well as to most services and digital products purchased from overseas.
Related Tools & Resources
- Invoice Generator – Create professional invoices with GST and ABN.
- Contractor Pay Calculator – Estimate your take-home pay as a contractor.
- ATO: GST for business
- Business.gov.au: GST explained