Australia generally applies 10% GST, but registration and collection depend on turnover, supply type, customer status, platform responsibility, and import value. Configure tax only after these facts are mapped to the ATO rules.
Key takeaways
Businesses generally register when current or projected GST turnover reaches A$75,000; the threshold is A$150,000 for non-profit bodies.
Non-resident sellers of digital products or services to Australian consumers can have Australian GST obligations.
Low-value imported goods generally means goods with a customs value of A$1,000 or less.
An electronic distribution platform may be treated as responsible for GST on covered supplies.
The 10% GST and registration threshold
GST is generally 10% of the price of taxable sales. GST-free categories such as certain basic food, health, education, and exports differ from input-taxed supplies, so classification affects both customer tax and credit recovery.
An enterprise generally must register when current or projected GST turnover reaches A$75,000, or A$150,000 for a non-profit body. GST turnover is not simply accounting revenue; exclusions and the statutory calculation need to be applied.
- Test current and projected 12-month turnover.
- Separate taxable, GST-free, and input-taxed sales.
- Document the required or voluntary registration date.
Digital products and imported services
Non-resident businesses selling imported services or digital products to Australian consumers generally need to register when relevant annual turnover reaches A$75,000. Covered products can include software, apps, streaming, e-books, online courses, memberships, and professional services.
An Australian consumer is generally an Australian resident who is not GST-registered or who is not acquiring the supply for its enterprise. Sellers need reasonable evidence of residence and business status and should handle inconsistent indicators through a documented rule.
- Ask for GST registration and business-use information where relevant.
- Use multiple customer-location indicators.
- Separate B2B supplies from consumer supplies.
Low-value imported goods
Australia applies GST to covered sales of low-value imported goods with a customs value of A$1,000 or less. Merchants, electronic distribution platforms, and re-deliverers that meet the registration threshold can be responsible for collection at checkout.
Consignments over A$1,000 generally follow border collection rules for GST, customs duty, and clearance charges. When multiple low-value goods are shipped together, documentation must help prevent double collection at checkout and the border.
- Determine customs value per good and consignment.
- Show GST registration details on required documents.
- Coordinate tax data with carriers and customs brokers.
Electronic distribution platforms
An electronic distribution platform operator can be responsible for GST when the statutory platform rules apply. The analysis considers whether the supply is made through the platform, whether it is within scope, whether an exclusion applies, and which platform is responsible if more than one is involved.
If the platform is responsible, the underlying merchant generally should not account for GST on the same covered supply. The merchant should retain platform agreements and tax reports and continue to evaluate its direct sales.
- Map platform and merchant responsibility.
- Prevent double charging on facilitated transactions.
- Reconcile platform reports separately from direct sales.
BAS reporting, credits, and records
GST-registered businesses report through business activity statements or the applicable simplified non-resident process. Businesses with GST turnover of A$20 million or more generally report monthly, while other frequencies depend on circumstances and ATO requirements.
Reconcile total sales, GST-free sales, GST on sales, purchases, GST credits, refunds, and import data. Retain tax invoices and evidence supporting credits and classifications. Correct identified GST errors using the ATO rules for the relevant period and value.
- Maintain a BAS calendar.
- Tie GST control accounts to source transactions.
- Keep valid tax invoices for credits.
- Review ATO guidance before correcting prior-period errors.
Configure customer status and location evidence
For digital products and imported services, determine whether the buyer is an Australian consumer using reasonable evidence of residence, GST registration, and enterprise use. Design checkout to collect the relevant declarations and identifiers without implying that one field conclusively decides the result.
For goods, preserve delivery, customs value, consignment, seller, platform, and carrier information. Route inconsistent evidence and orders near the A$1,000 low-value boundary for review. The evidence that supports the decision should be stored with the order, not reconstructed after an ATO enquiry.
- Capture ABN and GST registration status where relevant.
- Use consistent rules for conflicting location signals.
- Store customs and logistics identifiers.
- Test mixed consignments and returned goods.
Run a registration-to-BAS workflow
Record whether the business uses standard or simplified registration, the effective date, reporting frequency, accounting method, responsible entity, and credit entitlement. Align invoice text, GST displays, exchange-rate rules, and account mappings with that registration route.
For each period, bridge commerce data to BAS or simplified return totals. Reconcile taxable, GST-free, and input-taxed sales; GST on sales; purchases; credits; imports; adjustments; and refunds. Review large or unusual movements before submission and retain accepted returns and payment receipts with the workpaper.
- Maintain a due-date calendar and named reviewer.
- Separate platform-responsible transactions.
- Validate tax invoices before claiming credits.
- Document prior-period corrections.
Frequently asked questions
What is the Australian GST rate?
The standard GST rate is 10% on most taxable goods and services.
What is the GST registration threshold?
It is generally A$75,000 of current or projected GST turnover, or A$150,000 for non-profit bodies.
What counts as low-value imported goods?
The Australian rules generally treat goods with a customs value of A$1,000 or less as low-value imported goods.
Does Australian GST registration always allow input tax credits?
No. Credit entitlement depends on the registration system, the purchase, business use, and supporting documentation. Simplified non-resident registration has different consequences.
Can a platform and merchant both charge GST on the same sale?
They should not duplicate GST when the platform is treated as responsible for the covered supply. The parties need transaction-level responsibility rules and reconciliations.
Official sources
Reviewed against the following primary sources on Aug 8, 2026.