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Indirect taxes in Australia (VAT/GST)

Indirect Taxes in AustraliaVAT/GST in Australia : main rate, reduced rates and exemptions
In Australia, a Goods and Services Tax (GST also know as VAT) is imposed on all taxable goods and supplies at the rate of 10% ( 10 percent). It is calculated on the value of the taxable good or supply which is ten-elevenths of the GST-inclusive price received by the supplier as consideration for the good or supply. Therefore, if a supplier receives AUD 110 for a taxable supply, the GST is 10 percent of 10/11 of the value of the supply (i.e. 10 percent of AUD 100).

Non-taxable goods and supplies are not subject to GST. Included in non-taxable goods and supplies are GST-free supplies which cover a range of items: most notably basic food, healthcare, education and exported goods and services.
Also, included in non-taxable goods and supplies are input taxed goods and supplies. The most significant category of input taxed supplies is financial supplies.

The difference between a GST-free supply and an input taxed supply is that where the supplier makes a GST-free supply, any GST which it has paid in relation to acquisitions that relate to GST-free supplies may, nonetheless, be claimed as input tax credits. These input tax credits can be refunded to the taxpayer. By way of contrast, where the supplier makes such an input taxed supply and there is an associated GST expense in relation to acquisitions made that relate to that supply, no input tax credit can be obtained.

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Posted by on May 21 2013. Filed under Indirect Taxation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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