GST Calculator Australia

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. Introduced in July 2000 by the Howard government, the GST replaced several federal taxes, duties, and levies in a significant tax reform.

Since its introduction, the total GST revenue in Australia has shot up by 130%, while the GDP has grown by 180%. This has led to a decrease in the GST-to-GDP ratio from 4.0% in 2003–04 to 3.3% in 2018–19.These figures highlight the importance of understanding and accurately calculating GST. 

So, whether you’re a business owner figuring out how much GST to charge or a consumer trying to understand how much you’re really paying, this article is for you. Let’s  explore the workings of a GST calculator, its applications, and why it’s an indispensable tool in Australia.

What is a GST Calculator

A GST calculator is a handy tool that helps businesses and individuals calculate the GST amount on different goods or services. It simplifies the process of calculating the net price of a product or service, including GST, or determining the original cost before GST was added.

How to Calculate GST

I have  developed this tool as user friendly as possible. If you have purchased a product , there could be two scenarios

This calculator provides options for both scenarios. Simply select the situation that applies to you, input the amount, and then hit the “Calculate” button.

This calculator will help to elaborate following things,

Total Cost Including GST: The final price after the GST has been included.

How Does a GST Calculator Work

A GST calculator operates on simple mathematical principles. Here’s how it generally works:

Adding a 10% GST to a price is a simple task- you just multiply the original amount by 1.1. But when it comes to figuring out the GST that’s already included in a price, things get a bit more challenging:

In Australia, the GST rate is 10%, so you would use this rate in your calculations.

How to Register for GST

If your organization is looking to register for Goods and Services Tax (GST), you’ll need to fill out an application form that can be obtained from the Australian Tax Office. It’s important to note that before your organization can register for GST, it must first have an Australian Business Number (ABN). You also have the option to register for GST at the same time when you apply for an ABN.

What Registering for GST Means

If your organization is looking to register for Goods and Services Tax (GST), you’ll need to fill out an application form that can be obtained from the Australian Tax Office. It’s important to note that before your organization can register for GST, it must first have an Australian Business Number (ABN). You also have the option to register for GST at the same time when you apply for an ABN.

When your organization is registered under the GST system, it implies the following responsibilities and benefits

GST Turnover Thresholds Requiring GST Registration

Types of business/Organisation	GST turnover requiring GST registration
Sole trader	$75,000+
Business	$75,000+
Non-profit organization	$150,000+
Taxi or Limousine Drivers	Must register for GST regardless of turnover

No matter how many businesses you run, you only have to sign up for GST a single time. You have the flexibility to register either online, via a phone call, or through an agent when you’re setting up your business for the first time.

Once a business signs up for GST, it’s generally expected to stay registered for at least a year. However, when the revenue of your business hits the $150,000 mark, it becomes mandatory to sign up for GST within a span of 21 days.

GST Registration and Receiving Grants

If your organization is the recipient of a grant from the department, this could influence your total revenue and the necessity for your organization to register for GST. This is particularly significant in relation to the

For organizations that have already registered for GST, department will cover the GST amount in addition to the approved funding.

If your organization isn’t registered for GST, the department will only cover the funding amount that’s been approved, excluding GST. So, unlike organizations that are registered for GST, they won’t be adding any GST on top of the funding they’ve already approved.

GST and Acquitting Grants

When the approved grant sums are given, they do not include the Goods and Services Tax (GST). Therefore, organizations should present their acquittals excluding the GST. If an organization is registered for GST, it is their responsibility to compute the GST portion that has been spent separately. In case there are any remaining funds, excluding the GST, these should be returned back to the respective department. This ensures transparency and accountability in the financial dealings of the organization.

What are GST-free Sales and GST Exemptions

Certain items are exempted from the Goods and Services Tax (GST), and these are referred to as GST-free sales or GST exemptions.

Products and services that are shipped out of Australia typically do not incur GST fees, provided they leave the country within a 60-day window. This period begins when:

Main GST-Free Products & Services  

The majority of staple foods, certain educational programs, and a variety of medical, health, and care goods and services are not subject to GST. A comprehensive list of these GST-free items and services can be found below

Products

Services

GST-free Sale of a Business as a Going Concern

When a business is sold with all necessary equipment and infrastructure intact, it may operate without interruption, known as a ‘going concern’. The sale of a business as a ‘going concern’ is exempt from GST, provided the following conditions are met:

To calculate potential GST savings when selling your business as a ‘going concern’, you may use the Australian Business GST Calculator.

GST on Imported Goods for Businesses & Individuals

If you’re considering bringing goods into Australia, the Goods and Services Tax (GST) that applies may vary. This depends on the nature of the items you’re importing and whether they’re intended for personal consumption or for business purposes, such as resale.

The GST is calculated as 10% of the total value of the imported item. The total value is determined by several factors:

Individual

Please note that this is a general guide and specific rules may apply depending on the type of goods and other factors. Always check with the relevant authorities for the most accurate information.

Business

If you’re buying goods for resale through a business in Australia, it’s likely that the value of the imported goods will exceed A$1,000. In this case, you may want to claim GST credits on the goods you import.