Goods and services tax (GST)
Last edited 16 November 2011
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The Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
If a business has an income of more than $75,000 per annum it must register for the GST.
Generally, registered businesses:
- include GST in the price of sales of goods or services to their customers
- claim credits for the GST included in purchases for their business
So while GST is paid at each step in the supply chain, businesses do not actually bear the economic cost of the tax. The cost of the GST is borne by the final customer, who cannot claim GST credits.
Advice regarding tax obligations resulting from the GST and the associated legislation should be obtained from an accountant or by visiting www.ato.gov.au where advice regarding hardship in meeting tax payments can be obtained. Also see the ATO advice regarding its Small Business Assistance Program .
