How Much Is GST in Australia? Why It Matters More When International Shopping
Taxation is the one topic that makes business owners and shoppers alike frown. But it’s an unavoidable subject, so why not tackle the bull by the horns? First, how much is GST in Australia? Whether you’re on a shopping spree or just looking at prices online, you might have stumbled upon some sort of Aussie skincare product and wondered why it costs so much. It’s because of GST (goods and services tax).
You see, understanding GST in Australia is more like reading the fine print when signing an insurance policy agreement. It might not be thrilling, but later on, it can save you a great deal of nasty surprises. So, knowing how this tax works might save you a few bucks or a few grey hairs from stress.
What is GST in Australia?
GST is a tax applicable to almost every commodity purchased, at 10% of the goods’ value as at 2025. Whether it’s a flat white from a café in Melbourne’s laneways or a surfboard from Bondi, your purchase price has the 10% government cut in it. Introduced in July 2000 (around the time people were panicking about Y2K and Nokia was king), GST replaced a tangled mess of other taxes.
To consumers, GST translates into a more transparent taxation structure than what was there before. It’s always delineated on all purchase receipts for everyone to see. For instance, if your business earns $75,000 or more, it has to settle the GST.
In other words, GST and VAT have conceptual similarities, although Australia has tailored the former to meet certain unique requirements. This is what makes it a very important method of collecting tax for the country.
The Origin of GST in Australia
We’ve mentioned that GST is 10% of the value of goods and services. But why 10%? How did it come to be? Let’s take a trip down memory lane to understand its valuable context. This tax comes from a broad-based national consumption tax concept, which has a long history in Australia.
Back in the late 1990s, the country’s tax system was a bit confusing; it had both federal and state taxes all doing their own thing. There were federal excise duty, wholesale sale taxes, plus several other confusing aspects in between. It made taxpayers groan and accountants sigh, so there was need to bring uniformity.
A Gorton government federal treasurer, Les Bury, became the earliest advocate of GST. He believed states had to have their revenue source without charging the state income tax. This was around 1967 to 1971, but was never implemented.
About 14 years later, in 1985, the idea came to light again, this time from federal treasurer Paul Keating during a Tax Summit. After undue pressure from different groups, the idea disappeared. It came back to life in 1991 courtesy of the opposition party, the Liberal-National Coalition under John Hewson. GST became the centerpiece of their 1993 election platform. After losing the election, the party was unable to implement the idea.
It was in 2000 that Howard’s government implemented GST successfully. This marked a significant change in the country’s taxation landscape. Over the years, GST has matured to become an important part of conducting business in Aussie.
In 2010, the rate was revised to 11%, which stuck for some time. This was to help collect funds for flood relief in Victoria and Queensland. After a year, it was restored to 10%, which has stayed to this date.
Who Has to Register for GST?
Now that you understand how much is GST in Australia, let’s see who is required to pay for it. Any Australian business with more than AUD 75,000 per year is required to register for GST. If your business looks like it might hit this target revenue or achieve it, you have 21 days to register for GST.
As for non-profits, the cap stands at AUD 150,000. This simply means that the Australian Tax Office (ATO) requires that you:
- Charge GST on all your goods and services.
- File Business Activity Statements (BAS) regularly. This is more like your financial report card.
- Pay the collected GST to the ATO.
- Claim GST credits for the stuff you buy for your business.
Well, even if your business doesn’t hit those limits yet, you can still register voluntarily. But why would you? If you love claiming tax credits.
Registration is available online on the Australian Business Register (ABR) website or the ATO website’s Business Portal.
Calculating GST
Wondering how much GST you should charge if you’re a trader, or pay if you’re shopping? It’s pretty straightforward. for traders, whether selling goods or services, simply multiply your base price by 1.1 to get the final sale price. This will be inclusive of the 10% rate, so it’s the customer who is paying for it.
If you’re a customer shopping online or at a local retail outlet, just know that the prices you see already include the 10% GST. If not, the trader will include it in your receipt and clearly indicate how much it is. For instance, if buying a pair of authentic Australian-made pants at AUD 99.99, the actual price of the item is AUD 90.90. the GST paid here is AUD 9.09.
Generally, if you want to know how much GST is in an item price, simply divide the price by 11.
Shopping from Abroad? Here's the GST Scoop for You
Now, suppose you’re chilling in Amsterdam or New York and want to order a pair of R.M. Williams boots or a Vegemite sampler pack. Should you care about GST? Yes, you should, and here’s why:
Exported Goods
If the goods are being shipped overseas, chances are GST won’t apply. Any Australian business typically marks those orders as GST-free. So, if you’re shopping online at an Aussie store and want the products shipped to you, you might have escaped paying GST, but likely, the store doesn’t do international shipping. How do you get the products, even if GST isn’t a big deal to you? We’ll talk about how you can do that using Jetkrate shortly.
Digital Services
Now, here’s the tricky part. If you’re purchasing eBooks, online courses, or paying for subscriptions from Aussie providers, GST might still be added depending on the applicable rules. Think Spotify or Netflix—these guys play by the GST book nowadays.
Pro tip? Always double-check at checkout. The fine print is sneaky, but your wallet will thank you.
International Shopping with Jetkrate on Aussie Stores
A little earlier, we mentioned that majority of Aussie online stores don’t handle international deliveries. This makes it a bit daunting if you badly want something from these stores. Your worries can quickly shift from “how much is GST in Australia” to “how do I get hold of an Aussie product from abroad?”
Jetkrate can help you with that. Jetkrate is part postal superhero, and part shopping concierge. Here’s how you can shop Australian online stores using Jetkrate:
- Sign up for a free Jetkrate account and receive a local Aussie address.
- Shop at your favorite Aussie stores for skincare, surfboards, clothes, etc.
- Jetkrate receives your orders and consolidates the package.
- Choose where you want it shipped. Jetkrate delivers to over 200 destinations worldwide.
Do You Have To Pay GST When Shopping with Jetkrate?
Unfortunately, yes. That’s because the Jetkrate-issued delivery address is a local Australian address. This automatically classifies the goods for domestic consumption. The location of the actual buyer, whether in Australia or not, doesn’t matter. Under Australian laws:
- GST is charged at the time of sale since the goods are being delivered to an Australian address.
- The seller is required to include the 10% GST in the price, unless they can prove the goods are for export.
But in reality, the goods are being exported, so why can’t they treat them as GST-free? In theory, if the goods are exported within 60 days of purchase, they could qualify as GST-free under Aussie tax law. However, it’s still up to the retailer to decide whether to treat the sale as GST-free or not.
For that to happen, the retailer will require proof that the goods are exported. These include:
- A valid international shipping consignment note.
- A commercial invoice showing delivery outside Australia.
- The ability to track the export within the 60-day window.
Since you’re using Jetkrate’s Aussie warehouse as your initial delivery destination, most sellers won’t bother treating your order as a GST-free export. From the sellers’ end, it’s just a regular domestic delivery.
Here’s How You Can Get GST-Free with Jetkrate
If you’re making bulk purchases and the GST amount is just too big to brush off, here are some options you can consider:
1. Contact the retailer
Before placing your order, ask if they’re willing to treat your order as an export if you provide Jetkrate’s forwarding documentation. Alternatively, you can use Jetkrate’s Shopping Concierge service. This is where Jetkrate handles the order for you, from paying for it to ensuring it’s treated as GST-free.
2. Save More Through Jetkrate’s Consolidation Service
Even if you end up paying GST, Jetkrate still gives you a chance to save big through our consolidation service. This allows you to shop for as many items as you want while delivering them to our warehouse. Once done, we will consolidate all your orders into an easy-to-manage package, saving you money on shipping costs.
Jetkrate offers great value by unlocking access to top Aussie brands that don’t ship beyond Australian borders. This gives you a chance to save more on shipping costs than you lose in GST.
Final Thoughts
At the end of the day, knowing what and how much is GST in Australia will help you navigate international shopping and stand a chance to save some money. This important tax system was introduced in 2000 to align the government’s taxation model, eliminating the need to pay state and federal taxes on goods and services.
The 10% rate applies when making a purchase, so the real trick is in knowing when it applies, when it doesn’t, and how to play it to your advantage. And if you’re overseas and want to grab some Aussie goodies, Jetkrate makes your international shipping and GST dance a lot easier.
So, go ahead and browse Aussie online stores for your favorites now that you understand what GST is. Let Jetkrate help you get them safely to your doorstep anywhere around the world.