How to calculate GST in Australia
- Add GST: price × 1.1. A $250 job becomes $275 with $25 GST.
- Find the GST in a total: total ÷ 11. A $275 invoice includes $25 GST.
- Remove GST: total ÷ 1.1. $275 ÷ 1.1 = $250.
GST is 10% of the price before GST, which is why the GST inside a GST-inclusive price is one-eleventh, not 10%. On an invoice, the ATO lets you show "Total price includes GST" when the GST is exactly one-eleventh of the total (ATO: tax invoices).
When you need to register
Registration is required at $75,000 GST turnover ($150,000 for non-profits) and for taxi and ride-sourcing drivers from day one (business.gov.au). Once registered, you charge GST on taxable sales, claim GST credits on business purchases and report both on your BAS.
Other countries: Australia · New Zealand · Canada · India. Need an invoice with the GST on it? Try the free invoice generator.
Quick answers
How do I work out the GST in a price?
If the price already includes GST, divide it by 11. For example, $110 includes $10 GST. If the price does not include GST, multiply it by 10% (0.1) and add that on: $100 plus $10 GST is $110.
How do I remove GST from a price?
Divide the GST-inclusive price by 1.1. $110 ÷ 1.1 = $100 before GST. That is the same as taking away one-eleventh.
Do I have to charge GST?
You must register for GST once your business has a GST turnover of $75,000 or more a year ($150,000 for non-profits), and taxi and ride-sourcing drivers must register whatever their turnover. Below that it’s optional. Check business.gov.au or the ATO for your situation.
Is GST charged on everything?
No. Some sales are GST-free, such as most basic food, some health, medical and education services, and exports. If you are unsure whether something you sell is taxable, check the ATO’s GST pages or ask your accountant.