GST is tax on goods and services. The GST rate is 15%.
GST is tax on goods and services. It's usually charged at 15%.
Prices shown in shops and online include GST unless they say otherwise — the GST component of what you've paid is printed on your receipts.
How do you work out the GST amount of a price?
- Multiply the purchase price by 3
- Divide that number by 23
You purchase a car for $10,000 from a dealer and the price includes GST. To work out the amount of GST you paid:
- multiply $10,000 x 3 = 30,000
- divide 30,000 by 23 = $1,304.34782
- round this amount to the nearest cent = $1,304.35
The actual price of the car was $8,695.65 before GST.
If a price does not include GST, then the full GST-inclusive price can be found by adding 15%:
- $100 GST-exclusive price multiplied by 15% GST rate = $15
- Add $15 of GST to the $100 GST-exclusive price = $115 price including GST.