The Goods and Services Tax (GST) is a 10% broad-based tax on most goods and services sold in Australia. It was introduced on 1 July 2000 and the rate has remained at 10% since. Businesses registered for GST collect it on sales and can claim credits on business purchases.

Adding vs Removing GST

To add GST, multiply by 1.1. To find the GST component of a GST-inclusive price, divide by 11. To find the GST-exclusive amount, divide the inclusive price by 1.1. These formulas work because GST is always exactly one-eleventh of the inclusive price.

GST-Free Items

Not everything has GST. Basic food (fresh fruit, vegetables, bread, meat), most health and medical services, education courses, and some financial services are GST-free. Residential rent is input-taxed (no GST charged, but the landlord can't claim GST credits). Visit the ATO for details.