Goods and Services Tax (GST) is a value-added tax of 10% on most goods and services sales in Australia, with some exemptions and concessions). GST is levied on most transactions in the production process, but is in many cases refunded to all parties involved). The legislation for GST was passed on 28 June 1999 as A New Tax System (Goods and Services Tax) Act (Cth) 1999, and it came into operation on 1 July 2000). All Australian businesses whose turnover is above the minimum threshold (currently $75,000 per annum) are required to register for GST. Businesses whose turnover is below the threshold may register if they wish to).
Some key points about GST in Australia are:
- GST is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia.
- Some things don’t have GST included, and these are called GST-free sales.
- Businesses and other organizations registered for GST will include GST in the price they charge for their goods and services and claim credits for the GST included in the price of goods and services they buy for their business.
- GST applies to most retail sales to Australian consumers of imported goods and services.
- Non-resident suppliers are required to register, collect, and remit GST on the digital products and services that they provide to Australian consumers.
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organizations), or you provide taxi travel (including ride-sourcing), you need to register for GST.
