How GST Works in Australia (and How to Add or Remove It)
Here's the quick answer: Australia's Goods and Services Tax (GST) is a flat 10% applied to most goods and services. To add it, multiply the price by 1.1; to remove it from a GST-inclusive total, divide by 1.1. A handful of essentials — most basic food, and many health and education services — are GST-free, so the 10% doesn't apply to everything.
What GST applies to
Introduced in 2000, GST is a broad-based consumption tax. Most things you buy — electronics, dining out, clothes, fuel, professional services — include 10% GST in the advertised price. Unlike US sales tax, GST is built into the displayed price, so the ticket price is what you pay.
Some supplies are GST-free, meaning no GST is charged:
- Most basic foods (fresh produce, bread, milk)
- Most health and medical services
- Most education courses and childcare
- Some exports and certain charitable activities
How to calculate GST
The flat rate makes the maths easy:
| You want to… | Do this | Example |
|---|---|---|
| Add GST to a price | × 1.1 | $200 → $220 |
| Find the GST amount | ÷ 11 of the total | $220 → $20 GST |
| Remove GST from a total | ÷ 1.1 | $220 → $200 |
A handy shortcut: the GST portion of a tax-inclusive price is exactly one-eleventh of the total. The GST calculator does all three calculations instantly.
GST and businesses
A business must register for GST once its annual turnover reaches A$75,000 (A$150,000 for non-profits). Once registered, it charges GST on sales, claims credits for the GST it pays on purchases, and reports the difference to the ATO on a Business Activity Statement. The net effect is that GST falls on the end consumer, not on businesses along the way.
For more Australian tools — take-home pay, mortgage and superannuation calculators — see our Australia calculators.
This article is general information, not tax advice, and all figures are estimates. Rules and thresholds change — confirm current details with the ATO. See our disclaimer.