GST is a 10% consumption tax on most goods, services and other things sold in, and connected with, Australia.
What supplies are connected with Australia?
A supply of goods is connected with Australia if any of the following applies:
- the goods are delivered or made available in Australia to the buyer
- the goods are removed from Australia
- the goods are brought to Australia, provided the supplier either
- imports the goods into Australia
- installs or assembles the goods in Australia.
- land and buildings
- rights over land.
A supply of real property is connected with Australia if the property is in Australia. For GST purposes, real property includes land and buildings, rights over land.
A supply of great other than goods or real property is connected with Australia if either of the following applies:
- the thing is done in Australia
- the supplier makes the supply through an venture – that is, a permanent establishment – that the seller carries on in Australia.
Usually, a service is supplied in either location it is performed. If the service is performed in Australia, the supply of that service is connected with Australia.
How does GST apply to exports?
Exports are generally GST-free. These include:
- goods physically exported from Australia
- services complete to a non-resident outside Australia.