Australia GST Calculator – Simple & Accurate GST Calculation
AUSTRALIA GST CALCULATOR
The Australian Federal Government charges a 10% Goods and Services Tax (GST) on most products and services. This tax is collected at different stages of the supply chain and then distributed to state governments. Businesses registered for GST can claim credits for the tax they pay on purchases used to create taxable goods or services.
Some goods and services are GST-free, meaning no GST is charged, but businesses can still claim tax credits for their costs. This includes:
Some products and services are input-taxed (exempt from GST), meaning GST is not added, but businesses cannot claim tax credits on related expenses. This includes:
However, financial service providers can claim a 75% reduced input tax credit for some purchases. Need help with GST calculations? Use an online GST calculator to quickly determine how much GST applies to your purchases and sales.
Australia GST Rates Explained: Everything You Need to Know
Understanding GST in Australia is crucial for businesses operating within the country. The Australian GST rates are set at 10%, and it’s mandatory for businesses with an annual turnover exceeding $75,000 to undergo GST registration in Australia. Ensuring GST compliance in Australia is essential to avoid penalties, and businesses can apply for a GST refund in Australia if they have paid more GST than they have collected.”
Australia’s Goods and Services Tax (GST) was first proposed in the late 1960s and later revived by John Hewson in 1991 but was rejected in the 1993 election. Despite pledging otherwise, John Howard introduced GST before the 1998 election, replacing existing sales taxes. A compromise with the Australian Democrats exempted basic food items, leading to the GST Act’s passage in 1999 and implementation on 1 July 2000. In 2018, tampons were finally exempted from GST.

Health Insurance and GST
Health insurance is GST-free in Australia, meaning it is not subject to Goods and Services Tax (GST). However, other types of insurance such as life insurance are input-taxed, while general insurance is subject to GST.
Reverse Charge Mechanism
A reverse charge may apply to services or rights supplied from offshore, especially when the recipient is registered or required to be registered for GST, and uses the supply for a non-creditable supply. This applies to both business and consumer services.
GST on Digital Products and Services
GST is applicable to cross-border supplies of digital products and services imported by Australian consumers. This ensures that foreign suppliers of digital goods and services are required to register, collect, and remit GST on their Australian sales.
GST for Non-Resident Suppliers
The Australian GST rules are designed to ensure that non-resident businesses do not unnecessarily engage with Australia’s GST system. This includes switching off GST liability for certain supplies between non-residents and extending the GST-free rules to specific supplies made to non-residents.
Digital Currency GST Treatment
There is no double taxation on digital currencies, ensuring that supplies of digital currency are treated the same as money under the GST framework.
GST on Low-Value Goods and Imported Products
GST is payable on low-value goods (valued at AUD 1,000 or less) that are imported by Australian consumers. This change ensures a fair tax system for all imported goods, benefiting Australian businesses and consumers.
Wine Equalisation Tax (WET)
The Wine Equalisation Tax (WET) is applied at a rate of 29%, and GST is calculated on the price that includes WET. It applies to a variety of wines such as grapes, fruit-based wines, and even mead.
Wine Rebate for Producers
A rebate of 29% of the wholesale price (excluding WET and GST) is available to wine producers. The maximum rebate per financial year is AUD 350,000.
Luxury Car Tax (LCT)
The Luxury Car Tax (LCT) is levied at a rate of 33% on the value of cars exceeding the luxury car tax threshold.
Luxury Car Tax Thresholds
For the 2024/25 financial year, the LCT threshold for fuel-efficient vehicles is AUD 91,387, and for other vehicles, it is AUD 80,567. Cars purchased beyond these values are subject to the LCT.
Customs Duties on Imported Goods
Australia imposes customs duties on imports, with the highest rate being 5%. However, there is no customs duty on electric vehicles and plug-in hybrid vehicles under a certain threshold.
Free Trade Agreements and Exemptions
Australia has comprehensive free trade agreements with countries like China, India, Japan, United States, and the European Union. These agreements aim to reduce or eliminate tariffs, benefiting both businesses and consumers.
Excise Duties and Fuel Tax Credits
Excise duties are applied at high levels on tobacco, alcohol, and fuel products. These rates are updated bi-annually based on consumer price index (CPI) movements. Special concessions are available for specific eco-friendly products.
Fuel Tax Credits
A fuel tax credit system allows businesses and households to reclaim excise or customs duty on taxable fuel used for business or domestic purposes like heating.
Property Tax and Land Tax
All states, except the Northern Territory, impose a tax on the unimproved value of land. Primary residences and land used for primary production are typically exempt from land tax.
Land Tax Surcharge for Foreign Owners
Some states, like Victoria, apply a land tax surcharge for foreign or absentee owners. Additionally, Victoria has a vacant land tax on vacant residential land.
Stamp Duty and Tax Concessions
Stamp duty applies to various transactions, with varying rates depending on the state and type of transaction. Real estate transfers and share transfers (in unlisted entities) are subject to this duty.
Commercial Property Tax Transition in Victoria
Starting July 2024, Victoria will shift from stamp duty on commercial properties to an annual commercial and industrial property tax (CIPT), which will be calculated based on the unimproved land value.
Environmental Taxes and Carbon Abatement
While Australia does not impose a carbon tax, it offers incentives through the Clean Energy Regulator for carbon abatement activities. Companies can trade carbon credits as part of Australia’s Emissions Reduction Fund.
Fringe Benefits Tax (FBT)
The Fringe Benefits Tax (FBT) is charged at 47% on non-salary benefits provided by employers. However, some exemptions exist, such as for remote area housing and COVID-19 testing benefits.
Exemptions for Low-Emission Vehicles
There are specific FBT exemptions for zero-emission vehicles and low-emission vehicles (starting from 1 July 2022).
Payroll Tax and Mental Health Surcharge
Each state and territory imposes a payroll tax with different rates and thresholds for exemption. Employers must comply based on their annual taxable wages.
Mental Health and Wellbeing Surcharge
Some states like Victoria and Queensland impose a mental health surcharge for employers with high payrolls, contributing to the mental health fund.
Superannuation Guarantee (SG) Levy
Employers are required to contribute 11.5% of an employee’s earnings to a superannuation fund. Starting from July 2025, the SG levy will rise to 12%.
Major Bank Levy and Insurance Tax
The Major Bank Levy applies to Australian banks with liabilities exceeding AUD 100 billion. The levy is 0.015% of their liabilities.
Insurance Premium Tax
States impose a tax on insurance premiums, which can be quite substantial, depending on the type of insurance.
Petroleum Resource Rent Tax (PRRT)
The Petroleum Resource Rent Tax applies to offshore petroleum projects in Australia. The tax rate is 40% on taxable profits from crude oil, natural gas, and other petroleum products.
Local Municipal Taxes
Local taxes include charges for water, sewerage, and drainage services. These are typically based on the unimproved land value and usage.