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Glossary

Taxable supply

A supply on which GST is charged at 10% and on which the supplier can claim input tax credits for related purchases.

A taxable supply is the default GST category. It is a supply that: (1) is made for consideration; (2) is made in the course or furtherance of an enterprise; (3) is connected with Australia; and (4) is made by an entity that is registered or required to be registered for GST. All four conditions must be satisfied. If any of those conditions is not met — for example, a private sale between individuals not in business — the supply is outside the GST system entirely.

GST rate and tax invoices

The supplier adds 10% GST to the price of the supply and remits the net GST through the BAS. The recipient, if also GST-registered, claims the GST charged as an input tax credit — provided they hold a valid tax invoice. Tax invoices are required for all taxable supply purchases of $82.50 or more (including GST).

Required fields on a tax invoice

  • The words 'Tax invoice' stated prominently.
  • Supplier's identity and ABN.
  • Date of issue.
  • Description of the goods or services supplied.
  • GST amount (or a statement that the total includes GST).
  • For invoices over $1,000: the recipient's identity or ABN.

Common examples

  • Professional services — accounting, legal, consulting, IT services.
  • Commercial property rent — landlord charges 10% GST; tenant claims it back.
  • Most retail sales — clothing, electronics, hardware (with exceptions for some basic food).
  • New residential properties sold by developers.
  • Short-term commercial accommodation (hotels, serviced apartments).

What is the difference between the tax-inclusive and tax-exclusive price?

The tax-inclusive price is what the customer pays (e.g. $110). The tax-exclusive price is the base price before GST (e.g. $100). The GST amount is 1/11th of the tax-inclusive price — not 10% of it. A common error is to calculate GST as 10% of the total paid rather than 1/11th.

What is an adjustment event?

An adjustment event occurs when circumstances change after a taxable supply is made — for example, a credit note reducing the price, a return of goods, or a bad debt. The supplier and recipient must make adjustments to their BAS for the period in which the adjustment event occurs.