{"id":269666,"date":"2024-07-08T15:48:18","date_gmt":"2024-07-08T03:48:18","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=269666"},"modified":"2026-07-20T16:52:51","modified_gmt":"2026-07-20T04:52:51","slug":"how-to-calculate-gst","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/gst\/how-to-calculate-gst\/","title":{"rendered":"How to calculate GST"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” locked=”off” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Copy paste body text here” _builder_version=”4.27.7″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” locked=”off” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Calculating the goods and services tax (GST) is a fundamental part of running a business in Australia. For businesses, it is essential to get GST right, as failing to calculate GST properly can have a wide range of consequences and penalties from the Australian Taxation Office (ATO). To calculate GST, simply multiply your figure by 1.1 for inclusive or divide by 11 for exclusive GST amounts. Whether you’re a sole trader or a company, here is how you can accurately calculate GST for your business.<\/p>\n

How is GST calculated?<\/h2>\n

The GST rate is 10% of the base cost. If you have paid for any product or service in Australia, you’ve likely paid GST<\/a>. There are two ways to determine the GST amount for a good or service. If you are trying to find the total price including GST, you multiply the figure by 1.1.<\/p>\n

GST Inclusive Formula<\/h3>\n

GST INCLUSIVE =<\/p>\n

100 x 1.1 =<\/p>\n

110 (GST inclusive price)<\/p>\n

[\/et_pb_text][et_pb_image _builder_version=”4.27.7″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″ alt=”GST inclusive formula ” title_text=”GST Inclusive Formula” src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/11\/GST-Inclusive-Formula.png”][\/et_pb_image][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

GST Exclusive Formula<\/h3>\n

If you are looking for the total price excluding GST, then you divide the price including GST by 11 and subtract:<\/p>\n

GST EXCLUSIVE =<\/strong><\/p>\n

100 \/ 11 =<\/strong><\/p>\n

90.90 (GST exclusive amount)<\/strong><\/p>\n

9.09 GST amount<\/strong><\/p>\n

[\/et_pb_text][et_pb_image _builder_version=”4.27.7″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″ alt=”GST exclusive price formula” title_text=”GST Exclusive Formula 2″ src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/11\/GST-exclusive-Formula-2.png”][\/et_pb_image][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

GST Turnover thresholds<\/h2>\n

Handling GST is part of running a business. Under the Australian Tax Office (ATO)’s mandate, businesses that generate $75,000, or $150,000 for non-profit organisations, meet the threshold and must be registered for GST. Those that earn below the threshold (GST turnover) aren’t required to charge GST on invoices they send out, and can also request bills they receive to exclude the GST component. However, GST-registered businesses will often request GST be added to transactions for tax reasons, like when they file their business activity statement<\/a>.<\/p>\n

What are GST credits?<\/h2>\n

GST credits are part of a tax compliance system administered through business activity statements (BAS). Essentially, during operation, a business collects and pays GST on various transactions. When a business’s BAS is due, the company calculates the GST it paid and collected during the financial period. Depending on how much GST is involved, you can either get a refund (GST credits) from the ATO or owe them (GST payable) if you collect more GST than you paid.<\/p>\n

How to claim GST credits?<\/h3>\n

To claim GST credits<\/a>, you first need to complete your BAS and send it to the ATO for review. Once reviewed, if it is found that you paid more GST than you collected in your BAS, the ATO will refund you the amount.<\/p>\n

GST calculations and your business<\/h2>\n

GST is an important tax that small business owners need to understand, as it has far-reaching effects on how you operate, how you charge, and how you file your taxes (Business Activity Statement). To make sure that you calculate GST correctly, here is our GST Calculator<\/a>. If you want to eliminate manual entry admin time from your accounts and bookkeeping, Reckon software can help you automatically calculate GST.<\/p>\n

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If you would like to know how to calculate GST, how much you will pay or what to charge, follow these easy steps. We help you out with the whole process.<\/p>\n","protected":false},"author":36,"featured_media":272915,"menu_order":0,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"sbh_category":[199],"class_list":["post-269666","sbh","type-sbh","status-publish","format-standard","has-post-thumbnail","hentry","sbh_category-gst"],"yoast_head":"\nHow to Calculate GST & How Much is GST in Australia? | Reckon<\/title>\n<meta name=\"description\" content=\"If you would like to know how to calculate GST, how much you will pay or what to charge, follow these easy steps. 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