GST Rate in Australia
How much is GST in Australia?
The standard goods and services tax (GST) in Australia is 10%. It applies to most goods and services with a few exemptions. These include basic foods, certain medical and healthcare services and some educational courses.
What is a GST rate?
GST (goods and services tax) is a type of consumption tax. The Australian government applies it on the sale of goods and services.
GST isn’t paid by businesses — instead, it’s charged to consumers in the price of goods, and collected by businesses, making it an indirect tax. Businesses are then responsible for reporting it to the government.
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How to work out GST in Australia.
Total price including GST
To work out the total price at the standard rate of GST (10%), multiply the original price by 1.1.
Total price excluding GST
You can calculate the total price excluding the standard GST rate (10%) by dividing the original price by 1.1.
How does GST work?
GST is collected at each point in the production of goods — every time value is added and a sale is made. It’s designed to be paid by the consumer at the end. Here’s an example:
- A supplier sells a badminton racket to a shop for A$120. They owe A$20 GST to the government.
- The shop pays A$120 but can claim the A$20 back from the government, so the shop doesn’t pay the GST.
- The shop sells the racket to the customer for A$220. The GST is A$44 which the customer, as the end-user, pays in full to the shop.
- Together with the reclaimable A$20 GST, the shop will end up paying A$24 to the government.
GST Refund.
When you’ve visited Australia, you’ll be able to get a GST refund on items bought if:
- You’ve spent a minimum of A$300 in any tax-free store the same day.
There are multiple ways of receiving the refund — either get paid immediately at a refund booth at the airport or send the approved form to a refund company.
How to get a GST refund in 3 simple steps?
Application form
Get a Tax Refund Application Form from the retailer. You might also be asked to show your passport to check that you’re eligible.
Customs check
At customs, present your passport, GST form(s), GST invoice(s) and the tax-free goods.
Refund approved
If all the criteria is met, customs will approve your form. You’ll get a signed form that allows you to receive the refund.