How GST works in Australia
| Rule | |
|---|---|
| Rate | 10% of the GST-exclusive price (unchanged since 1 July 2000) |
| GST in an inclusive price | Price ÷ 11 |
| Add GST | Price × 1.1 |
| Remove GST | Price ÷ 1.1 (or price − price ÷ 11) |
| Registration threshold | $75,000 GST turnover a year ($150,000 for non-profits) |
| Must register regardless of turnover | Taxi and ride-sourcing drivers, and anyone claiming fuel tax credits |
| GST-free (no GST) | Basic food, most health, medical and education services, childcare, exports, some medicines |
Why divide by 11?
If the price before GST is 10 parts, GST adds 1 part, so the GST-inclusive price is 11 parts and GST is 1 of them. $110 ÷ 11 = $10 of GST, leaving $100. Taking 10% off $110 would give $11 — the wrong answer.
The BAS estimate
If you are registered, each BAS reports the GST you charged on sales (label 1A) and the GST credits on business purchases (label 1B). You pay the difference, or the ATO refunds it if your credits are larger. You can only claim a credit if the purchase was for your business, the price included GST and you have a tax invoice for purchases over $82.50 (incl. GST).
FAQ
How do I add GST to a price?
Multiply by 1.1. $1,000 + 10% GST = $1,100.
How do I work out the GST in a GST-inclusive price?
Divide by 11. A $1,100 invoice includes $100 GST; the price before GST is $1,000.
What is the GST rate in Australia in 2026?
10%. It has been 10% since GST started on 1 July 2000.
When do I have to register for GST?
When your GST turnover reaches $75,000 a year ($150,000 for non-profits), or straight away if you drive a taxi or rideshare.
Sources (checked 5 November 2026): A New Tax System (Goods and Services Tax) Act 1999 (s 9-70 rate of 10%, s 23-15 registration turnover thresholds); ATO “Registering for GST”, “GST-free sales”, “Tax invoices” and “Business activity statements (BAS)” guidance.