GST and tax invoices in Australia: a simple guide

GST trips up a lot of new business owners — but the essentials are straightforward. Here's a plain-English overview of how GST works, when you need to register, and what a valid Australian tax invoice has to include.

What is GST?

GST (Goods and Services Tax) is a broad 10% tax on most goods and services sold in Australia. If you're registered for GST, you add 10% to your prices, collect it from customers, and pass it on to the ATO — usually via a Business Activity Statement (BAS). You can also claim back the GST you pay on business purchases (GST credits).

When do I need to register for GST?

You must register for GST if your business has a GST turnover of $75,000 or more a year ($150,000 for non-profits), or if you provide taxi or ride-share services regardless of turnover. Below that threshold, registration is optional — some choose to register anyway to claim GST credits or to appear more established. You need an ABN to register.

Tax invoice vs invoice — what's the difference?

If you're registered for GST and a sale includes GST, you issue a tax invoice. If you're not registered, you issue a regular invoice and must not charge GST or call it a tax invoice. Customers who are registered for GST need a valid tax invoice from you to claim their own GST credits — so getting it right matters to them, too.

What a valid tax invoice must include

For sales of $82.50 or more (including GST), a tax invoice generally needs to show:

• The words “Tax invoice”
• Your business or trading name
• Your ABN
• The date the invoice was issued
• A brief description of the items sold, including quantity and price
• The GST amount (or a statement such as “Total price includes GST”)
• The extent to which each item includes GST

For sales of $1,000 or more, the invoice also needs the buyer's identity or ABN. A good invoicing tool fills all of this in for you automatically.

GST-inclusive vs GST-exclusive pricing

You can quote prices either way, as long as it's clear. “$110 incl. GST” and “$100 + GST” describe the same total. To find the GST in a GST-inclusive price, divide by 11 (so $110 ÷ 11 = $10 GST). Good software lets you toggle inclusive or exclusive and does the maths for you.

Common mistakes to avoid

• Charging GST when you're not registered for it.
• Leaving your ABN off invoices (customers may have to withhold tax).
• Spending the GST you've collected instead of setting it aside for your BAS.
• Forgetting to claim GST credits on business expenses.
• Mixing up inclusive and exclusive prices and under-charging.

General information only, current as at June 2026 — not tax advice. Always confirm with the ATO or a registered tax agent. See our Disclaimer.