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GST in Australia: What Every Business Needs to Know
Australia's Goods and Services Tax (GST) is a 10% tax on most goods, services and other items sold or consumed in Australia. Businesses with annual turnover of $75,000 or more must register for GST and charge it on taxable supplies.
When Do You Need to Register for GST?
- Turnover $75,000+: Mandatory registration (non-profit threshold: $150,000)
- Taxi/rideshare drivers: Must register regardless of turnover
- New businesses: Register within 21 days of expecting to exceed the threshold
GST-Free vs Taxable Supplies
Not everything attracts GST. Key GST-free items include: fresh food, medical services, education, childcare, exports, and residential rent. Always confirm with your tax agent which of your supplies are taxable vs GST-free.
Claiming GST Credits
If you're registered for GST, you can claim GST credits (input tax credits) on business purchases that include GST. You must hold a valid tax invoice for purchases over $82.50 (GST-inclusive).
General information only. Not tax advice. Consult a registered tax agent or visit ato.gov.au.
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