Goods & Services Tax (GST)
The Australian Government introduced a Goods and Services Tax (GST) in July 2000. The tax is paid, at a rate of 10 per cent, on all goods and services purchased in Australia.
There was concern that the introduction of the GST would make people worse off financially, however, income tax, sales tax, fuel tax, and other taxes were reduced to offset the increase in the prices of goods and services.
A range of products are exempt from the GST including basic food items such as milk, tea, and coffee and essentials such as first aid supplies, sunscreen, contraception aids, text books, and devices for the disabled.
Refer to the Australian Taxation Office (ATO) for information on the GST for small-business owners.