Goods and Services Tax (GST) is a broad based tax on the supply of most goods and services consumed in Australia. The GST was introduced with effect from 1 July 2000 at a set rate of 10% replacing the wholesale sales tax system and several state government taxes, duties and levies.
The purpose of the GST is to ensure that the final consumer of a good or service is the ultimate bearer of the costs of the GST.This occurs where all the suppliers within the chain, from initial production (such as growing grain) to final consumption (such as selling a loaf of white bread) are acting as the tax collectors and collecting the GST on sales, whilst being able to claim input tax credits on its purchases, except for the consumer, who will pay the GST but will be unable to claim an input tax credit.
