GST
GST is levied at a rate of 10% on the supply of goods and services.
It is payable where a taxpayer is in receipt of goods and services under a "taxable supply".
The actual amount of the GST that a consumer pays is 1/11th of the sale price. Businesses that supply goods and services will be required to remit 1/11th of the sale price to the ATO as GST. When a taxpayer makes a taxable supply of numerous items to one client, the supplier must issue a valid "tax invoice" so that the recipient will be able to claim an input tax credit on the supply.
Businesses that supply GST-free goods and services are unable to charge GST to the consumer. However, for input-taxed supplies, businesses that provide GST-free goods and services are entitled to tax credits for the GST they pay on goods and services consumed in providing their supplies to the end consumer.
The following items are GST free:
- Basic food
- Health
- Education
- Child care
- Exports and other consumption outside Australia
- Non-commercial activities of charitable institutions
- Transport and related matters
For more information please contact us