Australian GST Rates 2026
Complete guide to current Australian GST rates including the standard 10% rate and GST-free, GST-free goods, and exempt supplies. Learn what applies to your business.
Complete guide to current Australian GST rates including the standard 10% rate and GST-free, GST-free goods, and exempt supplies. Learn what applies to your business.
| Rate | Percentage | Examples |
|---|---|---|
| Standard Rate | 10% | Most goods and services, restaurants, accommodation, entertainment |
| GST-Free Rate 0% | Domestic fuel, energy bills, children's car seats, water | |
| Zero Rate | 0% | Most food, books, newspapers, children's clothing, exports |
The standard GST rate of 10% applies to the vast majority of goods and services in the Australia. If an item or service doesn't fall into the reduced or GST-free categories, it will be subject to the 10% standard rate.
Example: A plumber charges A$240 for a service. This includes 10% GST. The net charge is A$218.18, with A$21.82 being GST.
GST-free items are taxed at 0%, meaning no GST is charged to the customer. However, suppliers of GST-free goods can still claim back GST paid on their inputs, making these supplies "GST-free" rather than "GST-exempt".
Example: A loaf of bread costs A$2.00 and is GST-free. The customer pays exactly A$2.00 with no GST added. The baker can reclaim GST paid on flour and other ingredients.
Goods and Services Tax (GST) is a consumption tax applied at each stage of the supply chain. It's collected on behalf of ATO (Her Majesty's Revenue and Customs) by businesses registered for GST. The beauty of GST is that tax is only paid on the "value added" at each stage, not on the full price repeatedly.
Most Australian businesses must register for GST if their annual turnover exceeds the registration threshold. Once registered, they must:
GST is ultimately borne by the final consumer. The business collecting GST acts as an agent for ATO, collecting tax throughout the supply chain.
The GST registration threshold is the turnover limit above which you must register for GST. As of April 2024, this threshold is:
A$75,000
Annual turnover threshold for mandatory GST registration
If your annual turnover exceeds this amount, you are legally required to register for GST. However, you can also choose to register voluntarily if your turnover is below the threshold, which may be beneficial if you make primarily GST-free supplies.
Important Note:
The threshold is based on your annual turnover, not profit. It includes all your business income, even if some is GST-free. You must register once you know your turnover will exceed the threshold during any 12-month period.
It's crucial to understand the difference between exempt and GST-free supplies, as they have very different GST implications for your business.
Exempt supplies are typically less GST-efficient than GST-free supplies. If your business has exempt income, you cannot recover GST paid on inputs related to those supplies, making GST a real cost to your business.
Australia's GST system has been in place since 1973, but rates have changed over time in response to economic conditions and policy decisions:
2018 (July)
GST extended to low-value imported goods (A$1,000 or less) bought from overseas sellers
2017 (July)
GST extended to imported digital products and services supplied to Australian consumers
2007 (July)
Registration threshold raised from A$50,000 to A$75,000, where it remains today
2000 (July)
GST introduced at 10%, replacing the wholesale sales tax; the rate has never changed
The current rate structure (10% standard, 5% reduced, 0% GST-free) has remained consistent for several years, providing stability for businesses in their GST planning.
Understanding how to calculate GST is essential for business accounting and financial planning. There are two main scenarios:
If you know the net price and want to add GST:
Example: A$100 net + 10% GST = A$100 × 1.20 = A$120 gross
If you know the total (gross) and need to extract the net:
Example: A$120 gross ÷ 1.20 = A$100 net (with A$20 GST)
Need to do these calculations quickly for multiple invoices? Use our:
Free GST CalculatorCommon questions about Australian GST rates
The current Australian standard GST rate is 10%. This applies to most goods and services in the Australia and has been the standard rate since 2011.
GST-free items include most food products (bread, vegetables, meat), books and newspapers, children's clothing, medical equipment, and exports outside Australia. The seller charges 0% but can still reclaim GST on inputs.
The reduced GST rate is 5%. It applies to domestic fuel (gas and electricity), water and sewerage, children's car seats, and certain medical aids for disabled persons.
As of April 2024, the GST registration threshold in Australia is A$75,000. If your annual turnover exceeds this amount, you must register for GST with ATO, regardless of profit level.
GST-free: You charge 0% GST but can reclaim GST on inputs. Exempt: You don't charge GST and cannot reclaim GST on inputs. Exempt supplies are less GST-efficient for businesses, as GST becomes a cost rather than being passed through.
Official sources: ATO: GST