What is GST?
A tax built into the price of most things you buy.
You pay it on most shopping, but some items, such as much basic food, are free of it.
The rule
- GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia (ATO, 14 September 2026).
- The 10% is added on top of the price before GST. So a price with GST is 11 parts, ten of them the price and one of them the GST, and the GST inside a price is that price divided by 11.
- Some things are GST-free: most basic food, some education courses, some medical, health and care services, some childcare, water, sewerage and drainage, and exports, among others (ATO, 14 September 2026).
- GST-free food includes raw meat, plain bread, unflavoured milk, cream, cheese and eggs, fresh, frozen or canned fruit and vegetables and fish, and spreads such as jam (ATO, 26 February 2026).
- Taxable food includes takeaway hot food, food eaten on the premises where it is sold, confectionery, biscuits, potato chips, ice cream, flavoured milk, carbonated drinks and pet food (ATO, 26 February 2026).
- A food on the GST-free list can still be taxable under the taxable rules. The ATO's example is bread rolls eaten in a restaurant. How a food is marketed also affects its status.
- A business has to register for GST when its GST turnover is $75,000 or more, or $150,000 or more for a non-profit organisation (ATO).
What people ask
Why is GST divided by 11?
GST is 10% added to the price before GST. A $100 item becomes $110, and the $10 of GST is one eleventh of $110. To find the GST in a price with GST, divide by 11.
How do I work out GST?
To add GST, multiply the price by 1.1. To find the GST inside a price that already has it, divide by 11. To find the price before GST, divide by 1.1.
Is there GST on groceries?
Most basic food is GST-free, such as raw meat, plain bread, unflavoured milk, eggs and fresh fruit and vegetables. Taxable food includes biscuits, chips, ice cream, carbonated drinks, confectionery and takeaway hot food.
Is bottled water GST free?
The ATO lists natural water that is non-carbonated and without other additives as GST-free. Carbonated or flavoured water is taxable.
When do I have to register for GST?
The ATO says a business registers when its GST turnover is $75,000 or more, or $150,000 or more for a non-profit organisation.