Australia VAT Rate 2026: 10% Standard Rate

How Much Is GST in Australia?

The standard GST (the local equivalent of VAT) rate in Australia is 10% in 2026, with no reduced rates. It applies to most goods and services sold in Australia. Standard VAT/GST rates worldwide range from around 5% to 27%.

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

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2000: GST introduced at 10%

Economic Impact

VAT contributes approximately 20-30% to Australia's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Asia-Pacific region.

Zero-Rated Items

The following items are zero-rated for VAT in Australia:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in Australia (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in Australia:

• No reduced rates apply in this country

Australia requires GST registration once turnover reaches AUD 75,000 a year (AUD 150,000 for non-profits). Always confirm current thresholds and deadlines with the Australian Taxation Office (ATO), as they are reviewed periodically.

VAT Registration

• Registration Threshold: AUD 75,000 (AUD 150,000 for non-profits)
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Quarterly Business Activity Statement (monthly if turnover ≥ AUD 20m)
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Not applicable (non-EU country)
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Special rules may apply

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in Australia?

The standard VAT rate in Australia is 10% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in Australia?

To add VAT: multiply the net amount by 10%. To remove VAT from a gross amount: divide by 1.10. Use our calculator above for instant results.

Who needs to register for VAT in Australia?

Australia requires GST registration once turnover reaches AUD 75,000 a year (AUD 150,000 for non-profits).

Can I reclaim VAT in Australia?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.