Goods and Services Tax (GST) is the broad-based consumption tax in Australia, applied at a flat 10% rate to most supplies of goods, services and other items. It was introduced on 1 July 2000 and is governed by the A New Tax System (Goods and Services Tax) Act 1999.
Registration
Businesses with annual GST turnover of $75,000 or more (or $150,000 for non-profits) must register for GST. Once registered, they collect GST on taxable sales and can claim back GST paid on business purchases as input tax credits.
Three supply types
- Taxable supplies — 10% GST charged; input tax credits claimable on purchases. The default for most business transactions.
- GST-free supplies — no GST charged; input tax credits still claimable. Examples: basic food, exports, most health and education services.
- Input-taxed supplies — no GST charged; input tax credits cannot be claimed. Examples: residential rent, most financial supplies.
Reporting and payment
GST is reported and paid through the BAS. The net GST amount is either payable to the ATO (where GST collected on sales exceeds credits on purchases) or refundable (common for businesses with significant capital expenditure or exporters who charge no GST).
Do I charge GST on overseas sales?
Generally no — exports of goods and many cross-border services are GST-free. However, digital services supplied to Australian consumers by overseas businesses may have different rules under the 'Netflix tax' provisions.
What is a tax invoice and when do I need one?
A tax invoice is required to claim an input tax credit on purchases of $82.50 or more (including GST). It must show the supplier's ABN, GST amount, date, and a description of the goods or services.
Accelete's AI categorisation classifies every transaction as taxable, GST-free, or input-taxed and surfaces low-confidence cases for human review.