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Australia GST | GST

Australia GST is applicable in Australia.

Implementation of New Tax System package in Australia including New Tax System (Goods and Services Tax) Act, 1999 is considered as a landmark change to the Australian tax system. The new GST replaced the federal wholesale sales tax and some state and territory taxes with a single tax rate of 10% tax on supply of most goods and services with some exceptions.

  • The basic rule of GST in Australia is destination-based consumption tax with limited tax base exclusions.
  • Certain supplies such as certain food products, most medical and health services, drugs, medical aids and appliances, most education courses, child care, exports, religious services, international transport etc. are known as GST-free 12 on which GST not payable (other counties refer to these as zero-rated).
  • Certain supplies such as financial supplies, residential rent, residential premises, precious metals, school tuckshops and canteens and fund raising events conducted by charities etc. are known as input-taxed supplies 13 (other countries refer to these as exempt) and no GST is applicable on such supplies.

All Australian businesses whose turnover is above the minimum threshold (currently $75,000 per annum) are required to register for GST. Businesses whose turnover is below the threshold may register if they wish to.

A GST-registered business must charge its customers GST on taxable goods and services it provides, but is entitled to a credit for any GST it has paid for its expenditures on these goods and services as well as capital purchases (called input tax credits). A registered business must periodically lodge Business Activity Statements (monthly, quarterly or annually), and at the same time pay the net amount of GST owed to the tax office (if more GST is paid than collected, a refund is paid by the tax office instead).

Some goods and services (notably salaries, wages, fresh food, and real estate) are exempt from GST. Other goods and services (rental income and financial services) are “input-taxed”, which means that GST is not charged on the sale, but GST paid by that part of the business is not eligible to be claimed as an input tax credit.

Division 9 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act) stipulates that GST is applicable to a supply of goods, services and transactions related to real property, obligations or rights. The supply must be for consideration (GST Act s9-15) to a relevant entity registered for GST (Div 23) in the course of enterprise (s9-20). This does not include employment or hobby income.

 

Professionals, tax consultants, accountants can use the below links to be updated on Goods and Services Tax

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