Australia GST: What It Is, How It Works, and What You Need to Claim

When you buy something in Australia, you’re probably paying Australia GST, a 10% tax applied to most goods and services across the country. Also known as Goods and Services Tax, it’s not just a fee—it’s a system that affects every business, big or small, that sells anything taxable. If you run a business, file taxes, or even just shop locally, this tax touches your money. It’s not complicated, but getting it wrong can cost you—through missed refunds, penalties, or overpaying.

Businesses that earn over $75,000 a year must register for GST. Once registered, they charge it on sales and can claim back the GST they paid on business expenses—this is called input tax credit, the amount businesses can reclaim on GST paid for purchases like equipment, supplies, or services used in their operations. But not everything qualifies. You can’t claim GST on personal expenses, entertainment, or certain financial services. The BAS, the Business Activity Statement used to report GST and other taxes to the Australian Taxation Office is where you file your claims. Miss the deadline, and you lose money. File wrong, and you get flagged.

Many small business owners think GST is just another tax they have to pay. But it’s not. It’s a cash flow tool. If you’re charging GST on sales and paying less GST on your own purchases, you get money back. That’s a refund. And if you’re doing it right, that refund can help cover payroll, rent, or even reinvest in your business. The trick? Keeping clean records. Receipts, invoices, dates—all matter. The ATO doesn’t ask for much, but it asks for proof. No receipts? No claim.

And it’s not just about claiming. It’s about knowing what’s exempt. Medical services, education, and some food items don’t carry GST. If you sell those, you don’t charge it—and you can’t claim GST on related costs. Confusing? Yes. But it’s the difference between keeping $1,000 and losing it.

What you’ll find below are real guides from people who’ve been through it: how to file a GST refund step by step, what common mistakes kill your claim, how to avoid penalties, and what you can actually get back. No theory. No jargon. Just what works for Australian businesses right now.