In Australia, most businesses charge Goods and Services Tax (GST) at a rate of 10% on their products and services. However, certain essential goods and services are classified as GST-free, meaning GST is not included in the price—yet businesses can still claim GST credits for expenses related to those sales.

Understanding which transactions qualify as GST-free is crucial for compliance, proper bookkeeping, and effective financial management. Below is a list of GST-free products and services that businesses should be aware of.

Examples of GST-Free Products and Services

✅ Food & Essential Goods:

•⁠  ⁠Most basic food items

•⁠  ⁠Some menstrual products

✅ Health & Medical Services:

•⁠  ⁠Some medical, health, and aged care services

•⁠  ⁠Some medicines

•⁠  ⁠Some medical aids and appliances

•⁠  ⁠Cars for disabled people (when eligibility requirements are met)

✅ Education & Childcare:

•⁠  ⁠Some education courses, course materials, and related excursions or field trips

•⁠  ⁠Some childcare services

✅ Religious & Charitable Services:

•⁠  ⁠Some religious services

•⁠  ⁠Charitable activities

✅ Property & Land Transactions:

•⁠  ⁠Farmland sales

•⁠  ⁠Grants of land by the government

•⁠  ⁠Accommodation and meal supplies to residents of retirement villages (by certain operators)

✅ Utilities & Infrastructure:

•⁠  ⁠Water, sewerage, and drainage services

✅ Exports & International Trade:

•⁠  ⁠International transport and related services

•⁠  ⁠International mail

•⁠  ⁠Sales through duty-free shops

•⁠  ⁠Exported goods

✅ Other GST-Free Transactions:

•⁠  ⁠Precious metals (that meet GST exemption criteria)

•⁠  ⁠Sales of businesses as going concerns

•⁠  ⁠Some telecommunications supplies

•⁠  ⁠Eligible emissions units

Why It’s Important to Understand GST-Free Sales

• For Business Owners: If your business sells GST-free goods or services, you must ensure you are charging customers correctly while still claiming eligible GST credits for related expenses. Misreporting GST can lead to compliance issues or financial mismanagement.
• For Bookkeepers & Accountants: Understanding which sales are GST-exempt helps maintain accurate records, proper tax filings, and strategic tax planning for clients.

Need Help Managing GST-Free Transactions?

At The Global BPO, we specialise in bookkeeping, tax compliance, and financial management, ensuring your business remains compliant with GST laws while maximising financial efficiency.

Visit our website to partner up with us and grow your business: www.theglobalbpo.com.au.

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