GST (Goods and Services Tax)
Australia’s flat 10% tax on most goods and services.
GST is a flat 10% tax added to the price of most goods and services in Australia. If you’re registered, you add 10% to what you charge, collect it for the ATO, and claim back the GST on your business purchases. To find the GST inside a price, divide the total by 11.
You must register for GST once your business turnover reaches $75,000 a year; below that it’s optional. Registered businesses report GST on a Business Activity Statement (BAS).
Worked example
You invoice a client $1,100 including GST. The GST inside that is $1,100 ÷ 11 = $100, so $1,000 is your income and $100 is the ATO’s. In the same quarter you buy a $550 laptop — $50 of that is GST you can claim back. You’d hand over $100 − $50 = $50.
Common mistake
Treating the full invoice as your money. That $100 was never your income — spending it and finding it again at BAS time is the single most common cash-flow shock for newly registered sole traders.
Grounded in ATO guidance. Figures last checked . General information, not tax advice.
Related terms
BAS (Business Activity Statement)
The form GST-registered businesses use to report GST and PAYG.
GST turnover ($75,000 threshold)
The gross income figure that triggers GST registration.
Tax invoice
The GST-compliant invoice that lets a buyer claim the GST back.
ABN (Australian Business Number)
The 11-digit number that identifies your business.
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