What is the Goods and Services Tax (GST) and how does it work?

The Goods and Services Tax (GST) is a broad-based consumption tax implemented in Australia. It is a 10% tax on most goods, services, and products sold or consumed within the country. The GST is collected by businesses on behalf of the Australian Tax Office (ATO) at each stage of the supply chain. Businesses charge GST on taxable goods and services they provide, and they can also claim credits for any GST they paid on their business expenses. The net GST amount, which is calculated by subtracting the credits from the amount collected, is then remitted to the ATO through regular business activity statements. Consumers and individuals bear the actual cost of the GST as it is included in the price of goods and services they purchase. The ATO considers the GST as an efficient and transparent way to levy tax across the country while also promoting and supporting economic growth.