Australian GST Calculation Explained
Goods and Services Tax (GST) is a broad-based 10% tax applied to most goods and services sold in Australia. Whether you are a business owner or a consumer, understanding how to calculate GST is essential. This GST calculator for Australia allows you to easily determine the GST amount, the price including GST, and the price excluding GST for any transaction. You can enter an amount that either includes or excludes GST, and the calculator will provide a detailed breakdown and explanation of the results.
How to Use the GST Calculator Australia
Step One:
Enter the amount in Australian dollars (AUD) that you wish to calculate GST for. This could be the price of a product, service, or any taxable transaction. Make sure to input the value using numbers only, and decimals are allowed for cents.
Step Two:
Select whether your entered amount is exclusive of GST (does not include GST yet) or inclusive of GST (already contains GST). This distinction is important as the calculation method will change depending on your choice.
Step Three:
Choose the GST rate that applies to your scenario. The default is 10%, which is standard in Australia. However, you can select other common rates (such as 5% or 15%), or enter a custom rate if your transaction uses a different GST percentage. If you select “Custom,” a new field will appear for you to specify the exact rate.
Step Four:
Click the “Calculate GST” button. The calculator will instantly display the GST amount, the price excluding GST, and the price including GST. Each result is clearly labeled and formatted for easy reading.
Step Five:
Review the detailed explanation provided below the results. This section breaks down the calculation process, showing you the formulas and steps used to arrive at each figure. This helps you understand not just the outcome, but also how the GST was calculated based on your inputs.