VATupdate

GST Rates in Australia

Quick overview

Standard Rate Reduced Rate Other Rates
10% 0%

The local name for GST in Australia is Goods and Services Tax. There are basically 2 GST rates in Australia:

  • Standard GST rate is 10%
  • Zero GST rate

Recent developments

For more information about (recent) rate change developments in Australia, please click HERE.

Standard rate: 10%

The standard rate of GST applies to all supplies of goods and services unless a specific measure provides for the zero rate or an exemption.

Zero rate (0%)

Examples of goods and services taxable at 0% (i.e., GST-free)

  • Basic foodstuffs
  • Water, sewerage and drainage services
  • Exports of goods and services performed for nonresidents of Australia who are not in Australia when the supply is made
  • Health, education, religious and related supplies
  • Child care
  • Supplies of going concerns
  • International transport and mail

The term “input-taxed supplies” refers to supplies not liable for GST (i.e., exempt) that do not give rise to a right to claim input tax credits for GST included in acquisitions related to the supply.

Examples of exempt supplies of goods and services (i.e., input-taxed)

  • Financial supplies
  • Rental of residential premises
  • Sales (or long-term leases) of residential premises (except for new residential premises)
  • Supplies of some precious metals
  • Supplies in the course of fundraising events conducted by charitable institutions
  • Supplies made through school “tuck shops” and cafeterias

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on July 27, 2021.

Sponsors:

Advertisements:

* click here if you have interesting news to share *