How vat / sales tax works in Australia
Australian GST runs at 10% on most taxable supplies connected with Australia, with registered businesses charging output tax, claiming input credits, and filing Business Activity Statements.
Registration is compulsory past AUD 75,000 of annual gross income, or AUD 150,000 for non-profits, with quarterly or monthly BAS cycles depending on turnover.
Basic food, healthcare, education, and exports are GST-free with input credits intact, financial and residential supplies are input-taxed without them, and digital currency is treated like money for GST since July 2017.
Tax rates at a glance
- Standard GST
- 10%
- GST-free supplies
- 0%
- Input-taxed supplies
- No GST
- Registration threshold
- AUD 75,000
- Non-profit threshold
- AUD 150,000
- Digital currency exchange
- No GST
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- GST-free and input-taxed look similar on invoices but split on credits: food and exports preserve input claims while financial and residential supplies block them.
- Overseas sellers of digital products and low-value imported goods face Australian GST registration without any AUD 75,000 shelter.
- NFTs, stablecoins, and tokenised rights generally fail the digital-currency definition, so their GST treatment follows standard taxable or financial-supply analysis.
- BAS timing, fuel-tax credits, and wine equalisation add specialist layers that standard 10% pricing misses.
Frequently asked questions
What is the GST rate in Australia?
Australia applies 10% GST in 2026 on most taxable supplies. Basic food, healthcare, education, and exports are GST-free at 0% with credits intact.
When must an Australian business register for GST?
Past AUD 75,000 of annual gross income, or AUD 150,000 for non-profits. Taxi, limousine, and rideshare drivers register regardless of turnover.
Is crypto subject to Australian GST?
Exchanging digital currency is not subject to GST because it is treated like money since July 2017. Goods and services sold for crypto still carry normal GST.