How to Calculate GST for Business in Australia

How to Calculate GST for Business in Australia

GST stands for Goods and Services Tax and refers to the tax that must be paid on the acquisition of goods and services. If you operate a business in Australia, you must impose a 10% GST rate on your customers.

If you own a GST-registered business, it’s important to know when you are required to charge GST. Though you must charge it any time you sell a product or service, there are some items and services that are exempt from the GST, including:

  • Basic food products
  • Medical services and supplies
  • Certain educational courses
  • Drainage, sewerage, and water
  • Childcare services
  • Precious metals
  • Farmland and exports

To make sure you maintain compliance in your business, you need to be aware of what must be charged for GST and what not.

Steps To Calculate GST

The Goods and Services Tax (GST) in Australia is a standard 10%. This means that to find the GST of an item, which doesn’t already include GST, all you have to do is find 10% of the price.

The formula for finding GST is: P x 0.1 = G, where P is the original price and G is the amount of GST. Notice that 10% is converted into its decimal form 0.1 to use in the formula.

Step 1:  Set up your formula .P x 0.1 = G

Step 2:  Substitute known information. For ex: Take a price to be $200.200 x 0.1 = G

Step 3: Solve. 200 x 0.1 = 20. 20 = G

Our solution is $20.00 on the GST for the $200.00 item.

Though the formula is easy enough, you can use a GST calculator if you need assistance. You can find many online resources that offer a free GST calculator.


All Australian business owners must understand how to compute GST. You may assure accurate sales tax while avoiding fines by meeting your legal obligations.

For any assistance with GST billing and other accounting processes, feel free to contact our tax accountants at KPG Taxation.

Consulting with KPG Taxation

Focus On Growing Your Business, Leave The Accounting On Us!

  • Income Tax : File your taxes & get the best claims & returns.
  • Accountancy : Hire expert accountants to manage your transactions.
  • Bookkeeping : Let us handle your record books and expense reports.
  • Business Advisory : From company set-up to payroll, we handle it all.