Goods and Services Tax Australia

About Goods and Services Tax Australia

Australias Goods and Services Tax was introduced on July 1, 2000, under Prime Minister John Howard. The GST replaced the wholesale sales tax and various state taxes. The GST rate of 10 percent has not changed since introduction. The GST is a broad based tax with limited exemptions. Basic food, health services, and education are GST free. The GST is collected by the federal government but distributed to the states. This was a key political compromise to secure state support. The GST was highly controversial, with the Australian Democrats forcing modifications to the legislation. The Howard government nearly lost the 2001 election over the GST. The GST now raises approximately 80 billion annually.