# GST Calculator (Australia)

LAST UPDATE: September 25th, 2020

## Definition – What is the GST?

The GST, or Goods and Services Tax, is a value-added tax on purchases.

As a value-added tax, only the final consumer pays the GST – purchases by business at other stages of production do not pay GST (they are charged GST, however, those charges act as a credit against the GST they charge).

## Rates

Australia’s GST rate is 10%. Some goods and services are exempt from GST.

## What goods and services are not charged GST?

The Australian tax office keeps a record of goods and services not charged GST.

Popular (but not all) categories are:

• exports
• basic food
• medical care & medicines
• international transportation

Imports of goods (including low-value goods) to Australia are charged GST as of July 2018.

## Formula – How to calculate GST (formula)

GST is calculated by multiplying the GST rate (10% in Australia) by the total pre-tax cost. The cost of GST is then added to the purchase.

Example: \$75 of goods x 10% GST = \$7.50 GST

\$75 of goods + \$7.50 GST = \$82.50 total

## How to calculate reverse GST (formula)

To find the GST from a total, divide the total amount by the GST rate divided by 100 and plus 1.

Example: \$70 total (with GST) at 10% GST rate

(10% / 100) + 1 = 0.1 + 1 = 1.1

\$70 / 1.1 = \$63.64 cost before GST

## GST refunds (tourism & business)

Tourists who purchase goods with GST are eligible for a refund on exit of the country via the tourist refund scheme (TRS).  Goods purchased within the last 60 days of travel can qualify for a refund of GST.

Businesses are eligible to reclaim their costs that include GST. For more information and how to register see the Australian Tax Office’s page on GST.