Australian GST Calculator (10%)
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Understanding GST in Australia
The Goods and Services Tax (GST) in Australia is a broad-based value-added tax set at a flat rate of 10% on most goods, services, and other items sold or consumed in the country. Whether you are a business owner needing to calculate tax obligations or a consumer wanting to know the pre-tax price of an item, understanding how to calculate GST is essential.
This calculator helps you quickly determine the GST component of a price in two ways: either by removing GST from a total inclusive price or by adding GST to a base exclusive price.
How to Calculate Australian GST Manually
While our calculator handles the math instantly, it is useful to understand the formulas used for Australian GST calculations.
1. Adding GST to a Base Price (Exclusive to Inclusive)
If you have a price that does not yet include tax (an "exclusive" price) and need to add the 10% GST, the calculation is straightforward:
- GST Amount: Multiply the base price by 0.10 (10%).
- Total Price: Multiply the base price by 1.10.
Example: A service costs $200.00 (excluding GST). The GST is $200 x 0.10 = $20.00. The total invoice amount is $220.00.
2. Removing GST from a Total Price (Inclusive to Exclusive)
If you have a total price that already includes GST and need to find out what the base price was or exactly how much tax was included, the math is slightly different. You do not simply subtract 10%.
Because GST is 1/10th of the base price, the total price is 11/10ths of the base price. Therefore, the GST component is exactly 1/11th of the total inclusive price.
- GST Amount: Divide the total inclusive price by 11.
- Base Price: Divide the total inclusive price by 1.10 (or subtract the GST amount calculated above from the total).
Example: An item costs $110.00 (including GST). To find the GST amount, calculate $110 / 11 = $10.00. The base pre-tax price was therefore $100.00.
Are All Items Subject to GST?
While GST applies to most transactions in Australia, there are notable exemptions. These "GST-free" items mean businesses do not charge GST on them, but can usually still claim credits for the GST paid on inputs to supply them. Common GST-free categories include:
- Most basic food items (e.g., bread, milk, fruits, and vegetables).
- Certain medical, health, and care services.
- Certain education courses and materials.
- Exports of goods and services from Australia.
Always consult the Australian Taxation Office (ATO) or a qualified accountant for definitive advice regarding specific GST obligations and exemptions.