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It is a value-added tax (VAT) applied to most goods, services, rights, and property at a rate of 10%. Exports of goods or services consumed outside of Australia are generally exempt from GST. The GST system shifted to self-assessment in July 2012, wherein taxpayers report and pay their GST liabilities and credits when filing GST returns or import declarations.
Key points about GST in Australia are:
- Businesses conducting an enterprise with GST revenue meeting or exceeding the annual registration threshold of AUD 75,000 (AUD 150,000 for non-profit organizations) must register for GST. Businesses with GST revenue below the threshold can still choose to register if they conduct an enterprise globally.
- GST is a 10% tax applied to most goods, services, and intangible items supplied by registered businesses. The supplier is responsible for paying the GST owed. Usually, the GST is included in the price and paid by the customer. Exceptions include “input taxed,” “GST-free,” or “outside the scope” supplies.
- Imported goods are generally subject to GST at a rate of 10% of the taxable value. The Department of Home Affairs collects GST from importers during import, or registered importers may use the deferred GST scheme and report GST in their monthly GST returns.
- Some imported services may be subject to GST under the “reverse charge” rule.
- Registered businesses can claim input tax credits for GST paid on business acquisitions. Input tax credits are not available for private use items or for supplies considered “input-taxed”.
- Businesses with a GST turnover below AUD 20 million file quarterly GST returns or can opt for monthly filing. Those with a turnover of AUD 20 million or more file monthly returns. Unregistered taxpayers may choose to file annual GST returns.