
🎙️ Podcast Episode: How to Work Out GST
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Welcome back to another episode of GST Calculation , where we break down complex tax concepts into easy steps. Today’s topic is a big one for Australian business owners and shoppers alike: how to work out GST.
GST, or Goods and Services Tax, is a 10% tax applied to most goods and services in Australia. On the surface, it sounds simple, but many people still get confused about how to add it, remove it, or claim it back.
Here’s the easiest way to think about it:
- If you’re adding GST to a price, just multiply the original amount by 1.1. For example, if something costs $100, including GST it becomes $110.
- If you’re removing GST from the total price, divide the amount by 11 to find the GST portion, or divide by 1.1 to get the GST-exclusive amount. So, if a bill is $110, the GST included is $10, and the base price is $100.
- And if you’re a registered business, you can also claim GST credits for the tax you’ve already paid on business expenses.
Working out GST is essential for issuing tax invoices, reporting to the ATO, and staying compliant with BAS requirements. But the truth is, mistakes happen all the time when people try to calculate it manually.
That’s why tools like the GST Calculator for Australia at gstcalculatoraustralia.com are so handy. With just one click, you can add GST, remove GST, or calculate GST credits accurately, anytime, anywhere.
So the takeaway? GST doesn’t have to be stressful. Understand the basics, use the right tools, and you’ll always stay ahead of your numbers.