What Is GST?
The Goods and Services Tax (GST) is a broad-based 10% tax on most goods, services, and other items sold or consumed in Australia. It was introduced on 1 July 2000 and is administered by the Australian Taxation Office (ATO).
If your business has an annual turnover of $75,000 or more (or $150,000 for not-for-profits), you must register for GST. Once registered, you charge GST on your sales and can claim GST credits on your business purchases.
The GST Rate in Australia
Australia has a flat 10% GST rate. Unlike some countries with multiple VAT tiers, our system is straightforward — it's either 10% or GST-free. There's no reduced rate.
This simplicity makes calculations easy once you know the formulas.
How to Add GST (Calculate GST-Inclusive Price)
When you have a price excluding GST and need to work out the GST-inclusive amount:
Formula
GST Amount = Price x 0.10
GST-Inclusive Price = Price x 1.10