Small Business Tax Dictionary

The Goods and Services Tax (GST) is a value-added tax in Australia levied at a rate of 10% on most goods, services, and other items sold or consumed within the country. GST is collected by businesses at each stage of the supply chain and ultimately paid by the end consumer. Businesses that are registered for GST must charge the tax on taxable sales and can claim credits for the GST paid on business purchases. Understanding and complying with GST regulations is essential for Australian businesses, as it affects pricing, invoicing, and reporting practices. Proper management of GST helps ensure financial accuracy and legal compliance, supporting business sustainability and growth.