Australian GST: What It Is, How It Works, and What Businesses Need to Know

When you buy coffee, pay for a haircut, or order online from an Australian store, you’re likely paying Australian GST, a 10% consumption tax applied to most goods and services in Australia. Also known as Goods and Services Tax, it’s not just a line on your receipt—it’s a system that shapes how businesses track, collect, and report money to the government. Unlike income tax, GST isn’t about what you earn. It’s about what you spend. And if you run a business in Australia, it’s your job to collect it, manage it, and hand it over—correctly.

Running a business means you’ll deal with GST registration, the process of officially joining the GST system with the Australian Taxation Office. If your annual turnover hits $75,000 or more, you’re legally required to register. Even if you’re below that, you can choose to register—some small businesses do it to claim back GST on their own expenses. Once registered, you’ll file a Business Activity Statement (BAS), usually monthly or quarterly. This is where GST claims, the process of recovering GST paid on business purchases like equipment, software, or inventory come in. You don’t just pay GST—you can get some of it back. But only if you keep good records and follow the rules. Mistakes here? You could face penalties, delayed refunds, or audits.

Not everything is taxed. GST filing, the act of submitting your tax report to the ATO includes knowing what’s exempt: basic food, education, healthcare, and some housing. Mixing up taxable and exempt items is one of the most common errors. And if you’re selling digital services to Australian customers—even from overseas—you might still need to charge GST. The rules changed in 2017, and many foreign sellers didn’t realize it until they got a notice from the ATO.

What you’ll find below are real, practical guides written for people who need to get GST right—not just understand it. From how to file your first BAS without panic, to what you can and can’t claim as input tax credit, to how to avoid the traps that catch even experienced bookkeepers. These aren’t theory pieces. They’re step-by-step fixes for problems you’re facing right now. Whether you’re a sole trader, a small shop owner, or a freelancer working with Australian clients, the posts here give you what you need to stay compliant, save money, and sleep better at night.