Australia VAT Rate 2026: 10% GST

How Much Is VAT in Australia?

Australia does not levy a tax called VAT. Its equivalent is the Goods and Services Tax (GST), charged at 10% in 2026 with no reduced rates — the rate has been unchanged since GST was introduced in July 2000. It works the same way VAT does elsewhere: it is added at each stage of supply, businesses recover the GST they pay on inputs, and the consumer bears the final cost. Standard VAT/GST rates worldwide range from around 5% to 27%, so Australia sits well below the European average of 21.9%.

Registration is compulsory once turnover reaches AUD 75,000 (AUD 150,000 for non-profits), and registered businesses report through a Business Activity Statement to the Australian Taxation Office.

How to calculate Australia GST

To add 10% GST to a net (tax-exclusive) price, multiply it by 1.1. To remove GST from a gross (tax-inclusive) price, divide it by 1.1.

• Add GST: AUD 100 net × 1.1 = AUD 110 gross (that is AUD 10 of GST)
• Remove GST: AUD 110 gross ÷ 1.1 = AUD 100 net (that is AUD 10 of GST)

Use the Australia GST calculator above for any amount, or compare Australia with every other country in our GST rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2018: GST extended to low-value imported goods of AUD 1,000 or less from 1 July 2018
• 2017: GST extended to imported digital products and services from 1 July 2017
• 2016: Norfolk Island brought into the Australian GST system from 1 July 2016
• 2000: GST introduced at 10% on 1 July 2000, replacing wholesale sales tax

Is the VAT rate the same everywhere in Australia?

Yes, 10% GST applies uniformly across all states and territories (including Norfolk Island since 2016); Australia has no separate state sales taxes.

Good to know

The line between GST-free basic food and taxable food is detailed: bread, fresh meat, fruit and vegetables are GST-free, while restaurant meals, hot takeaway food, confectionery, soft drinks and snack foods attract 10% GST.

Prices shown to consumers must include GST, and a tax invoice is required to claim GST credits on purchases over AUD 82.50 (including GST).

GST revenue is collected by the federal government and distributed entirely to the states and territories.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Basic food for human consumption (not restaurant, takeaway or snack food)
• Most health and medical services and medical aids
• Education courses and course materials
• Approved childcare
• Exports of goods and many services to non-residents
• Water, sewerage and drainage
• Sale of a going concern

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Financial supplies (input taxed)
• Residential rent (input taxed)
• Sale of existing residential premises (input taxed)
• Precious metals after first supply (input taxed)

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Australian Taxation Office (ATO) before relying on them.

Cross-border rules

Digital services and e-commerce: Offshore suppliers of digital products and services to Australian consumers must register and charge 10% GST once their Australian sales reach AUD 75,000 a year; electronic distribution platforms are liable for supplies made through them. Low-value imported goods of AUD 1,000 or less sold to consumers are also taxed by the seller or platform.

Tourist VAT refunds: Yes: the Tourist Refund Scheme (TRS) refunds GST on goods costing at least AUD 300 (including GST) from one business, bought within 60 days before departure and carried as hand luggage.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in Australia?

The standard VAT rate in Australia is 10% in 2026. Other rates in force: 0% (gst-free (zero rate)). See the rates table above for exactly what each rate covers.

How do I calculate VAT in Australia?

To add 10% VAT, multiply the net price by 1.1. To remove it from a VAT-inclusive price, divide by 1.1; the difference is the VAT. The calculator at the top of this page does both.

Is there GST on food in Australia?

Basic food such as bread, fresh meat, fruit, vegetables and milk is GST-free. Restaurant and takeaway meals, snack foods, confectionery and soft drinks are taxed at 10%.

When do I need to register for GST in Australia?

You must register once your annual GST turnover reaches AUD 75,000 (AUD 150,000 for non-profits). Taxi and ride-sourcing drivers must register from the first dollar.

How does the Tourist Refund Scheme work?

Travellers departing Australia can claim back GST on goods costing at least AUD 300 from a single business, bought within 60 days of departure. Claims are made at the TRS facility or via the TRS app before the flight.

Where these figures come from

• Australian Taxation Office - GST
• Australian Border Force - Tourist Refund Scheme
• PwC Worldwide Tax Summaries - Australia