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Taxes

Australia — Tax: GST (No VAT)

Australia does not have a Value-Added Tax (VAT) — it has a Goods and Services Tax (GST), which functions similarly to a VAT as a broad-based tax applied throughout the supply chain. GST is charged at a flat rate of 10% on most goods and services. Some supplies are GST-free (e.g. most basic food, health, education) or input-taxed (e.g. residential rents, financial supplies).

VerifiedPwC Worldwide Tax Summaries — Australia, Individual: Other taxes (confirms GST rate and absence of VAT); registration threshold cross-checked against publicly documented ATO GST rulesLast reviewed: 2026-08-31

Key facts

  • Australia has no VAT; its equivalent broad-based consumption tax is the GST, levied at a flat rate of 10%.
  • GST-free categories include most basic food, health care, and education; input-taxed categories include residential rent and most financial supplies.
  • Businesses with GST turnover of AUD 75,000 or more (AUD 150,000 or more for non-profit organisations) must register for GST; voluntary registration below the threshold is also possible.
  • GST-registered businesses can generally claim input tax credits for GST paid on business-related purchases, reported via a Business Activity Statement (BAS).

Steps

  1. Registering for GST — Businesses with an annual GST turnover of AUD 75,000 or more (AUD 150,000 for non-profits) must register for GST; registration is done online via the ATO or through the Australian Business Register.
  2. Charging and paying GST — Registered businesses add 10% GST to most taxable sales and remit the net GST collected (minus input tax credits) to the ATO via periodic Business Activity Statements (BAS), typically monthly or quarterly.
  3. Claiming input tax credits — GST-registered businesses can claim credits for GST paid on business-related purchases by reporting them on their BAS.

Costs

  • GST rate: 10% on most goods and services
  • GST registration fee: No fee for standard online GST registration

Timelines

  • BAS lodgment: Monthly or quarterly, per the ATO lodgment schedule assigned to the business

Required documents

  • Australian Business Number (ABN)
  • Tax File Number (TFN)
  • GST registration confirmation from the ATO

Common mistakes

  • Referring to Australia's consumption tax as 'VAT' rather than GST
  • Failing to register for GST once the AUD 75,000 turnover threshold is exceeded
  • Not keeping accurate records of GST collected and paid for BAS reporting

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