What Is Australian GST?
Australian GST, fully known as “Goods and Services Tax,” is a value-added tax levied by the Australian federal government on most goods, services, and other items sold or consumed in Australia. The current GST rate is 10%, administered by the Australian Taxation Office (ATO).
Businesses engaged in taxable business activities, selling goods, or providing services in Australia must register for GST once they reach a certain turnover threshold, and must collect, report, and remit GST on qualifying transactions. For import operations, GST may also be handled at the import stage by customs or the tax system.
Simply put, GST is not an ordinary “business license” — it is a business's tax registration and tax identity identifier when operating in Australia: without GST registration, a business cannot legally collect sales tax, issue tax invoices, or properly claim input tax credits and file tax returns.
