What is GST in Australia?
GST in Australia is goods and services tax. It’s similar to VAT in the UK, although the Australian GST rate is only 10%.
GST in Australia is something you might see mentioned on a shopping or restaurant receipt. To the outsider, this is potentially confusing. So what is GST in Australia?
Meaning of GST in Australia
GST in Australia stands for goods and services tax. This is a consumption tax applied to goods and services. To all intents and purposes, it’s the same thing as VAT in the UK under a different name.
Although there are some significant exemptions, you will pay GST when you buy most things in Australia.
For information on GST exemptions, visit the Australian Taxation Office website.
What is the GST rate in Australia
The GST rate in Australia is 10%. For most visitors, this will be largely irrelevant as businesses are obliged to include the GST in the price.
If you buy something for $30 in Australia, the GST has been included in that price. You don’t have to pay another $3 on top of the stated price.
History of GST in Australia
GST in Australia was introduced in 2000 by the Howard Government of the time. The new goods and services tax replaced a raft of separate taxes, some imposed at a state level.
The introduction of GST was controversial at the time. It was something that had been mooted for years, and Prime Minister John Howard had previously promised that he would never introduce it.
In the end, the introduction of GST narrowly squeezed through parliament. It came in at the same time as cuts to personal income tax and company tax. These cuts were designed to offset the impact of GST.
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