The Goods and Services Tax (GST) is a flat 10% tax on most goods and services sold in Australia. There are two reasons it matters to backpackers: if you shop before flying home, you may be able to claim the GST back through the Tourist Refund Scheme (TRS); and if you work for yourself on an ABN (freelancing, contracting, ride-share), you may have to charge and report GST yourself. This guide covers both, with the current 2026 thresholds, registration steps and refund rules.
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Key takeaways
- GST is 10% on most goods and services (some basics are GST-free).
- Travellers can reclaim GST (and wine tax) on eligible purchases when leaving Australia — minimum A$300 from one store, bought within 60 days of departure.
- Most employees on a Working Holiday Visa never deal with GST — it only applies if you run your own business on an ABN.
- You must register for GST once your business turnover reaches A$75,000 (or from your first trip if you drive ride-share/taxi).
What is GST?
GST is a value-added tax of 10% on most goods and services sold or consumed in Australia. It is similar to the VAT system used in many other countries. GST is designed to be borne by the end consumer, with businesses acting as intermediaries who collect and remit the tax to the Australian Taxation Office (ATO).
How GST Works
GST is applied at each stage of the production and distribution chain. Businesses charge GST on what they sell (output tax) and pay GST on what they buy (input tax). They can claim back the GST paid on business-related purchases — these are called input tax credits.
In practice, a GST-registered business will:
- include GST in the price it charges for its goods and services;
- claim credits for the GST included in the price of the things it buys for the business.
Example:
- A manufacturer sells goods to a wholesaler for $100 plus $10 GST (total $110).
- The wholesaler sells the goods to a retailer for $150 plus $15 GST (total $165).
- The retailer sells the goods to the end consumer for $220 plus $22 GST (total $242).
At each stage, the GST collected on sales is offset by the GST already paid on purchases, and only the net amount is sent to the ATO. A quick way to work out GST: to add GST, multiply the price by 1.1; to find the GST already inside a price, divide by 11.
The government website provides a calculator to help you make sure you are doing the right calculation. Simply enter your amount without GST and you will get your final rate with an extra 10%.
Taxable, partly taxable and GST-free sales
- GST-free goods and services carry no GST at all (so there is nothing to refund on them).
- Taxable sales include GST in the price. The sale must be made while running your business and be connected with Australia.
- Partly taxable sales: if a sale can be split into parts and some are GST-free or input-taxed, you only pay GST on the taxable part.
Common GST-free items include:
- most basic food;
- some education courses, course materials and related excursions;
- some medical, health and care services;
- menstrual products (GST-free since 2019);
- some medical aids, appliances and medicines;
- some childcare and some religious or charitable activities;
- water, sewerage and drainage;
- precious metals, farmland and international transport;
- sales through duty-free shops and exports.
Do Working Holiday makers need to register for GST?
Short answer for most people: no. If you work as an employee (paid through payroll with a Tax File Number), your employer handles tax and you never touch GST. GST only becomes your responsibility if you earn income through your own ABN — for example freelancing, contracting or ride-share driving. If that’s you, our guide to freelancing in Australia is worth a read too.
Who must register for GST?
Before you can register, you need an Australian Business Number (ABN).
| Situation | Threshold | When to register |
|---|---|---|
| Running a business (sole trader, company) | Turnover ≥ A$75,000 in any 12-month period | Within 21 days of passing the threshold |
| Ride-share / taxi drivers (Uber, DiDi, Ola) | No threshold — from day one | Before your first trip |
| Not-for-profit organisations | Turnover ≥ A$150,000 | Within 21 days |
| Overseas businesses selling to Australian consumers | ≥ A$75,000 of sales to Australia | Within 21 days |
You only need to register once, even if you run more than one business. If your turnover permanently drops below the threshold, you can cancel your registration (again, within 21 days).
How to register for GST?
- Get an ABN at abr.gov.au (free).This is an 11-digit number that identifies your business with the Australian government. Once you have this number, you can register for GST.
- Set up myGovID (digital ID) on your smartphone.
- Log into the ATO website – Online services for business and choose “Register for GST”.
- Select your accounting method: cash (pay when you receive/ pay) or non‑cash (accruals).
- Choose your reporting cycle (monthly, quarterly, annual).
Please note: For freelancers, once you register for GST, you will then have to include the tax (10%) in the price you charge to your clients. You will also be able to claim back GST on products or services you purchase for your business.
Cancelling : Deregister within 21 days if turnover drops permanently below threshold.
Lodging your BAS
GST-registered businesses report through a Business Activity Statement (BAS), which you lodge online, through a registered tax or BAS agent, by mail, or by phone (only if you have nothing to declare). How often depends on your turnover: monthly (A$20 million or more), quarterly (the default for most small businesses), or annually (an option for voluntarily-registered businesses under the threshold).
Standard quarterly due dates are fixed:
| Quarter | Standard due date |
|---|---|
| Q1 — Jul to Sep | 28 October |
| Q2 — Oct to Dec | 28 February |
| Q3 — Jan to Mar | 28 April |
| Q4 — Apr to Jun | 28 July |
Lodging online usually earns you about two extra weeks for Q1, Q3 and Q4, and using a registered BAS/tax agent can extend the dates further. Because these concession dates shift slightly each year, always confirm the current deadline on the ATO website before you lodge.
Getting your GST back when you leave: the Tourist Refund Scheme (TRS)
This is the part most travellers care about. The Tourist Refund Scheme (TRS), run by the Australian Border Force (ABF), lets you claim back the 10% GST (and the Wine Equalisation Tax, if you bought wine) on goods you buy in Australia and take home with you. It applies to both overseas visitors and Australian residents heading abroad — only aircraft and ship crew are excluded.
Do you qualify?
You can make a TRS claim if all of the following are true:
- You spent A$300 or more (GST included) at a single business (same ABN). Good news: this can be several receipts from the same store added together — it doesn’t have to be one transaction, and a chain like JB Hi-Fi counts as one store as long as the ABN matches.
- You bought the goods within 60 days of your departure date.
- You paid for the goods and you are the one travelling.
- You have the original tax invoice (for purchases over A$1,000, it must also show your name or passport number).
- You take the goods with you as carry-on (worn or in hand luggage) to show the ABF officer.
⚠️ The claim window is 60 days. You also can’t claim on services (accommodation, flights, tours), on GST-free goods, or on anything already consumed in Australia (food, drinks, most perfume).
How much do you get back?
The refund is the GST component — one-eleventh (÷11) of the price — plus WET on eligible wine. So on A$550 of shopping, you’d get roughly A$50 back. Refunds are not paid in cash: the ABF pays to a credit card or an Australian bank account, and it can take up to 60 days to arrive.
For the full walkthrough with airport-by-airport tips, see our dedicated guide: Get your GST back when leaving Australia.
This article is general information for backpackers, not tax advice, and the rules can change. For your own situation and the latest details, check the official sources: the ATO for GST and BAS, and the Australian Border Force for the Tourist Refund Scheme.
