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Comparing New Zealand and Australia's goods and services tax (GST) systems

What is GST?

New Zealand Australia

GST is a tax of 15% on all goods, services and other items sold or consumed in New Zealand.

You become liable to pay GST when your annual turnover exceeds NZ$60,000 in any 12-month period.

Depending on your turnover, you can elect to file returns, every six months, two months or monthly.

Find out more

GST

GST is a broad-based consumption tax. It was introduced on 1 July 2000 and replaced a wholesale sales tax.


The GST rate is set at 10% of the price of the goods being sold or services being supplied, where GST is applicable.


GST refers to either the "value" of a taxable supply or the "price":

  • The value of a taxable supply is the GST-exclusive consideration payable for the supply.
  • The price is the GST-inclusive consideration payable for the supply.

GST is 10% of the value of the supply and is included in the sale price of a taxable supply. For example, for an item selling for $70, its:

  • value is $63.63 (calculated as $70 x 10/11), and
  • GST component is $6.36 (calculated as $70/11).

 

When is GST not payable?

New Zealand Australia

Certain goods and services are not liable for GST at 0%, either because they are zero-rated or are exempt from GST.

Exempt supplies include supplies of residential accommodation and many financial services such as paying and collecting interest.

Some supplies, however, are within the GST tax net but nevertheless the rate applying to them is zero and not 15%. That is, they are said to be zero-rated.

Some transactions are outside the scope of GST, for example:

  • gifts made by people who are unregistered or have no connection with Australia.

Others are GST-free which means there is no liability for GST on the supply but the supplier can claim credits for GST on the acquisitions it has made, for example:

  • specified exports
  • health
  • food
  • education
  • international travel, and
  • certain charitable activities.

Use this form when completing your GST return

New Zealand Australia
GST return (GST101) > Business activity statement (BAS)
 

Find out more

New Zealand Australia
GST GST overview

 


Date published: 29 Sep 2010

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