Goods and Services Tax

01 July 2000

After lengthy discussion and debate, plus an extensive public education campaign, the Goods and Services Tax (GST) was introduced in 2000. The GST is a 10% tax on most goods and services sold or used in Australia. To ensure the GST legislation would pass, the government had to compromise. Rather than charge the tax on all goods and services, some food, health and education products and services were exempt.

A tax similar to the GST had first been proposed in 1975 and other similar proposals were fiercely debated during the 1980s and 1990s. The GST replaced the Wholesale Sales Tax and a number of state taxes. Revenue from the GST is allocated to states and territories based on each state or territories expense needs and ability to raise their own revenue.