GST Australia Guide
Read our guide and find out all you need to know about GST in Australia, from registration to filing, and more.
Expanding your business to Australia entails understanding its VAT system, known locally as Goods and Services Tax (GST). This guide will help you grasp the essentials of the Australian GST framework, equipping you with the knowledge necessary for seamless business operations in Australia.
What is the Australia GST rate?
The Australian GST system is characterized by a uniform rate structure, making it relatively straightforward. The standard Australia GST rate is as follows:
Some goods and services in Australia are exempt from GST, including certain types of food, education, childcare, medical services, and water and sewerage utilities.
Registering for GST in Australia
In Australia, the GST registration threshold for businesses, both resident and non-resident, is AU$75,000 in annual turnover. Companies exceeding this threshold must register for Australian GST. Those below can voluntarily register to reclaim any input GST incurred.
To register for Australian GST, businesses can apply through the Australian Taxation Office (ATO) website. Once the application process has been completed, your businesses will receive an Australian Business Number (ABN) and GST registration typically within 28 days.
Fiscal representative in Australia
Non-resident businesses do not require a local fiscal representative for GST purposes in Australia. However, they must comply with all Australian GST regulations.
Australia GST return filing and penalties
The filing frequency for Australian GST returns depends on a business’s annual turnover:
- Monthly filing for business with a turnover of AU$20 million or more.
- Quarterly filing for businesses with a turnover of between AU$75,000 and AU$20 million.
- Annual filing for businesses with a turnover under AU$75,000 who chose to voluntarily register for Australian GST.
Returns and payments are due on the 21st day of the month following the end of the reporting period. For quarterly Australian GST returns, the deadline is the 28th of the following month, and for annual returns, it is February 28 of the following year.
Late submissions may incur penalties and interest charges, with the ATO imposing a fine based on the degree of lateness and the amount owed.
Reverse charge in Australia
The reverse charge mechanism applies to certain imported services as well as B2B services in Australia. Under this system, the recipient, rather than the supplier, is responsible for reporting the GST.