1, Taxable sales

If you are registered for GST – or required to be – the goods and services you sell in Australia are generally taxable unless they are GST-free or input-taxed.

For these taxable sales, you:

• Include GST in the price
• Issue a tax invoice to the buyer
• Pay the GST you’ve collected when you lodge your activity statement

You can claim credits for the GST included in the price of purchases you needed to make your taxable sales.

2, GST Free Sales

You don’t include GST in the price if your product or service is GST-free. You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales.

Things that are GST-free include:

• most basic food
• some education courses, course materials and related excursions or field trips
• some medical, health and care services
• some medical aids and appliances
• some medicines
• some childcare services
• some religious services and charitable activities
• supplies of accommodation and meals to residents of retirement villages by certain operators
• cars for disabled people to use, as long as certain requirements are met
• water, sewerage and drainage
• international transport and related matters
• precious metals
• sales through duty-free shops
• grants of land by government
• farmland
• international mail
• exports
• sales of businesses as going concerns
• some telecommunications supplies
• eligible emissions units.

3, Input-taxed sales

Input-taxed sales are sales of goods and services that don’t include GST in the price, you can’t claim GST credits for the GST included in the price of your ‘inputs’.

The most common input-taxed sales are financial supplies (such as lending money or the provision of credit for a fee) and selling or renting out residential premises.