Summary
Australia charges 10% GST; New Zealand charges 15% GST on most goods and services — prices in Australia and New Zealand are almost always shown inclusive of GST, so the price you see is the price you pay. Understanding GST Australia New Zealand is essential for migrants to navigate these tax systems.
Some goods and services are GST-free in Australia — basic food, health services, education and exports are exempt; New Zealand’s GST is broader and applies to most food and health products that are exempt in Australia
If you run a business or work as a contractor above the registration threshold, you must register for GST and charge it to your customers — AUD $75,000 annual turnover in Australia; NZD $60,000 in New Zealand
GST — Goods and Services Tax — is a consumption tax that applies to most things you buy in Australia and New Zealand, making it crucial to understand the implications of GST Australia New Zealand. It is the equivalent of VAT in the UK and Europe, or sales tax in the United States — except that unlike US sales tax, GST is always included in the price shown to consumers. What you see is what you pay.
If you are coming from India, the Philippines, Nepal, Vietnam or the Pacific Islands, understanding GST helps you make sense of pricing, business obligations and your rights as a consumer.
What is GST?
GST is a broad-based tax on the consumption of goods and services. It is collected by businesses on behalf of the government and passed on to the tax authority.
The key concept: GST is ultimately paid by the consumer, not the business. A business charges GST to its customers, collects it, and passes it to the tax authority. The business itself claims back the GST it paid on its own purchases — so it is not a cost to the business, only to the end consumer.
Australia — 10% GST
Australia introduced GST on 1 July 2000 at a rate of 10%. It is administered by the Australian Taxation Office (ATO).
The rate: 10% on most goods and services.
How prices work: All prices in Australian shops, restaurants and online stores are shown inclusive of GST — the 10% is already included. If a product is priced at AUD $110, AUD $10 of that is GST.
Calculating GST: To find the GST in a price, divide by 11. To add GST to a price, multiply by 1.10.
What is GST-free in Australia?
Australia has more GST exemptions than most countries. The following are GST-free:
Food: Most basic food and groceries are GST-free — bread, milk, fruit, vegetables, meat, seafood, rice and most unprocessed foods. However, prepared and restaurant meals, takeaway food, soft drinks, confectionery, snack foods, ice cream and alcohol all include GST.
Health: Most health services are GST-free — visits to a GP, specialist, dentist, physiotherapist, optometrist or hospital. Prescription medicines under the PBS are GST-free. Ambulance services are GST-free.
Education: School fees, university tuition and most vocational education are GST-free.
Exports: Goods exported from Australia are GST-free.
Financial services: Most financial supplies (bank accounts, loans, insurance premiums) are input-taxed rather than GST-free — they do not include GST but the provider cannot claim input tax credits.
Childcare and religious services.
Note: Unlike many countries, alcohol, tobacco and gambling in Australia do attract additional taxes (excise duties and levies) on top of the regular GST framework.
GST and your tax return
If you are employed and pay PAYE tax, GST has nothing to do with your personal tax return — you simply pay GST-inclusive prices as a consumer and it is handled automatically.
If you run a business or freelance:
You must register for GST with the ATO if your annual turnover is AUD $75,000 or more (AUD $150,000 for non-profit bodies). Once registered, you:
- Add 10% GST to all invoices you issue (except for GST-free supplies)
- Lodge a Business Activity Statement (BAS) quarterly or monthly — reporting the GST you collected and claiming back the GST you paid on business expenses
- Pay the net GST to the ATO or receive a refund if you paid more GST than you collected
Voluntary registration: You can register for GST even below the $75,000 threshold — useful if you have significant business expenses and want to claim back the GST paid on them.
New Zealand — 15% GST
New Zealand introduced GST on 1 October 1986 at 10%, increased to 12.5% in 1989 and then to its current rate of 15% in October 2010. It is administered by Inland Revenue (IRD).
The rate: 15% on most goods and services.
How prices work: All prices in New Zealand are shown inclusive of GST. A product priced at NZD $115 includes NZD $15 of GST.
Calculating GST: To find the GST in a price, multiply by 3 and divide by 23 (or multiply by 0.130435). To add GST to a price, multiply by 1.15.
What is GST-free in New Zealand?
New Zealand’s GST is significantly broader than Australia’s — fewer things are exempt. Key exemptions:
Exempt supplies:
- Donated goods sold by non-profits
- Fines and penalties
- Certain residential accommodation (long-term residential rent is exempt from GST; short-term accommodation such as Airbnb is not)
- Financial services
What is NOT exempt in New Zealand (unlike Australia):
- Most food — unlike Australia, basic groceries in New Zealand generally include GST. A loaf of bread in New Zealand includes GST; a loaf in Australia does not.
- Most health products — over-the-counter medicines, vitamins and supplements are subject to GST in New Zealand
This broader base is why New Zealand’s GST rate (15%) generates proportionally more revenue than Australia’s (10%) despite the two economies being broadly similar in structure.
GST and businesses in New Zealand
You must register for GST if your annual turnover exceeds NZD $60,000. Once registered:
- Add 15% GST to all invoices
- File a GST return with IRD (usually every 2 months, or monthly for larger businesses)
- Claim back the GST you paid on business expenses (input tax credits)
Side-by-side comparison
| Australia | New Zealand | |
|---|---|---|
| Rate | 10% | 15% |
| Introduced | 1 July 2000 | 1 October 1986 |
| Administered by | ATO | IRD |
| Basic groceries | GST-free | GST applies |
| Restaurant meals | GST applies | GST applies |
| GP visits | GST-free | GST-free |
| Prescription medicines (PBS/government) | GST-free | GST may apply |
| School fees | GST-free | GST-free |
| Long-term rent | GST-free | GST-free |
| Short-term accommodation (Airbnb) | GST applies | GST applies |
| Business registration threshold | AUD $75,000/year | NZD $60,000/year |
| Business reporting | Quarterly BAS | Usually 2-monthly GST return |
GST and you as a consumer
As a salaried employee and consumer, GST requires no action from you. Every time you buy something, the price you see includes GST. You do not file or pay GST separately. It is embedded in the cost of living.
GST affects your cost of living in one important way: New Zealand’s 15% GST applies to more goods than Australia’s 10% — particularly groceries and over-the-counter health products. This is one reason groceries can feel more expensive in New Zealand than in Australia even for equivalent products.
GST and sending money overseas
When you send money overseas using OrbitRemit, the service itself is not subject to GST — international money transfers are financial services and are either GST-free or input-taxed in both Australia and New Zealand. The fee you pay to OrbitRemit does not include GST.
- AUD to INR: fee-free — no transfer fee, no GST
- AUD to PHP GCash: fee-free
- NZD to GBP: fee-free
- AUD/NZD $4 flat fee corridors — this fee does not include additional GST
FAQs (frequently asked questions)
What is the GST rate in Australia?
10% on most goods and services, introduced on 1 July 2000. Prices in Australia are shown inclusive of GST.
What is the GST rate in New Zealand?
15% on most goods and services, at its current rate since October 2010. Prices in New Zealand are shown inclusive of GST.
Are groceries subject to GST in Australia?
Most basic groceries (bread, milk, fruit, vegetables, meat) are GST-free in Australia. Prepared food, takeaway meals, soft drinks and snack foods include GST.
Are groceries subject to GST in New Zealand?
Yes — most food in New Zealand is subject to 15% GST, unlike in Australia where basic groceries are exempt.
Do I need to register for GST as a migrant?
Only if you run a business or freelance with annual turnover above AUD $75,000 (Australia) or NZD $60,000 (New Zealand). As an employee, you do not register for or file GST.
Is GST included in the prices I see in shops?
Yes — both Australia and New Zealand require all prices displayed to consumers to be GST-inclusive. The price tag is the final price.
Is rent subject to GST?
Long-term residential rent is GST-free in both Australia and New Zealand. Short-term accommodation (Airbnb, serviced apartments) is subject to GST.
This guide is for general information only. GST rules and rates are subject to change — verify at ato.gov.au (Australia) or ird.govt.nz (New Zealand). Last updated August 2026.
Sources: Stripe — GST between Australia and New Zealand (July 2026) | ATO — Goods and services tax (ato.gov.au) | IRD — GST (ird.govt.nz) | gstcalc.net — GST history New Zealand | Expenseflow.ai — Australian GST and the BAS 2026 (May 2026) | taxefficiencylab.com — New Zealand tax guide 2026 (2 weeks ago)
