GST-Free and Input-Taxed Sales in Australia
Short answer: almost everything sold in Australia is taxable at 10%. The exceptions are GST-free (0%, and you can still claim GST on your costs): most basic food, many health and education services, menstrual products, international travel and exports. A few sales are input-taxed (no GST, and no claiming GST on related costs): residential rent, sales of existing homes and financial services. Restaurant meals, snacks, sweets, soft drinks, alcohol, children’s clothes and books are all taxable.
This guide is for Australian businesses deciding what to charge GST on, and overseas sellers checking whether their products are taxable. It’s current as of 12 November 2026.
Taxable, GST-free or input-taxed
Section titled “Taxable, GST-free or input-taxed”| Taxable | GST-free | Input-taxed | |
|---|---|---|---|
| GST on the price | 10% | 0% | None |
| Claim GST on your costs? | Yes | Yes | No |
| Counts towards A$75,000? | Yes | Yes | No |
| Examples | Most goods and services | Basic food, health, education, exports | Residential rent, financial services |
GST-free sales are better for a business than input-taxed ones, because you keep your GST credits. An exporter that buys A$22,000 of stock including A$2,000 of GST gets the A$2,000 back on its BAS, even though it charges no GST.
Food: what’s GST-free and what isn’t
Section titled “Food: what’s GST-free and what isn’t”The GST-free rule for food covers basic food for human consumption. The ATO’s detailed food list decides the borderline products. In short:
| GST-free | Taxable (10%) |
|---|---|
| Fresh fruit, vegetables, meat, fish, eggs | Restaurant and café meals, and anything eaten on the premises |
| Bread, flour, rice, pasta, breakfast cereals | Hot takeaway food and prepared meals |
| Milk, cheese, butter, yoghurt | Ice cream and frozen confectionery |
| Plain tea, coffee beans and ground coffee | Soft drinks, energy drinks, flavoured mineral water |
| Cooking oils, spreads, sauces and condiments | Chocolate, lollies and confectionery |
| Baby food and infant formula | Chips, savoury snacks and salted or flavoured nuts |
| Bottled still water | Cakes, biscuits, pastries and pies |
| Alcoholic drinks | |
| Pet food |
Packaging that comes with GST-free food, such as a jar or a box, takes the food’s treatment. Packaging that’s worth something on its own, such as a gift basket, is taxable.
Health, medical and personal care
Section titled “Health, medical and personal care”| GST-free | Taxable (10%) |
|---|---|
| Medicare-covered medical services | Cosmetic procedures not covered by Medicare |
| Services from recognised health professionals (dentists, physiotherapists, psychologists, optometrists and others on the ATO’s list) | Gym memberships and personal training |
| Prescription medicines | Most vitamins, supplements and over-the-counter products |
| Listed medical aids and appliances, such as wheelchairs | Cosmetics, skincare and haircare |
| Menstrual products (pads, tampons, menstrual cups) | Toiletries and razors |
Education and care
Section titled “Education and care”- GST-free: primary and secondary school, university and accredited vocational courses, the course materials sold with them, and approved childcare.
- Taxable: courses taken for recreation or personal interest, such as a weekend pottery or cooking class, and most online courses sold by private providers that aren’t accredited education courses.
Exports and international sales
Section titled “Exports and international sales”- Goods are GST-free if they leave Australia within 60 days of the earlier of payment or invoice, and you keep proof of export (courier tracking, Australia Post records, the shipping label).
- Services and digital products supplied to customers outside Australia are generally GST-free, unless the service relates to land or goods in Australia.
- International flights and transport are GST-free.
For an online store, exports usually means every order shipped to an address outside Australia. Make sure your store’s tax settings don’t add GST to them.
Other GST-free sales
Section titled “Other GST-free sales”- Water, sewerage and drainage services
- Some religious services and some activities of charities
- Sale of a business as a going concern, when buyer and seller are both registered and agree in writing
- Farmland sold for farming
- The first sale of refined precious metal by the refiner
Input-taxed sales
Section titled “Input-taxed sales”| Input-taxed | Notes |
|---|---|
| Financial supplies | Lending, interest, shares and securities, and many bank and payment services |
| Residential rent | Long-term rent of a home. Commercial rent is taxable |
| Sales of existing residential property | Sales of new homes are taxable |
| Precious metals | After the first sale by the refiner |
| School canteens and fundraising events | Can be input-taxed for eligible schools and charities |
You don’t charge GST on these and you can’t claim GST on the costs of making them.
Mixed orders, delivery and hampers
Section titled “Mixed orders, delivery and hampers”- Work out GST line by line. A grocery order with milk (GST-free) and chocolate (taxable) has GST on the chocolate only.
- Delivery fees on a mixed order are apportioned between the GST-free and taxable parts on a reasonable basis, such as their share of the order value.
- Gift hampers mixing GST-free food with taxable items are apportioned the same way.
Worked example: an Adelaide hamper business sells a A$99 hamper containing coffee beans (A$24) and loose-leaf tea (A$16), which are GST-free, plus chocolate (A$22), a bottle of wine (A$28) and the basket and wrapping (A$9), which are taxable. The taxable part is A$59 including GST, so the GST is A$5.36 (A$59 ÷ 11), not A$9 (A$99 ÷ 11). On 400 hampers before Christmas, getting the split right saves the business about A$1,456 of GST it would otherwise pay on GST-free food.
Setting it up in your store
Section titled “Setting it up in your store”- Shopify: untick Charge tax on this product for GST-free products, or put them in a collection with a tax override.
- WooCommerce and BigCommerce: give GST-free products a zero-rate tax class.
- Check the ATO’s detailed food list before you set a food product as GST-free. Many look basic but aren’t: muesli bars, salted nuts and most snack foods are taxable.
- Overseas sellers: the same rules decide whether your products sold to Australian consumers are taxable. Most physical goods and digital products are.
Official sources
Section titled “Official sources”- Detailed food list, Australian Taxation Office
- GST food classification guidance, Australian Taxation Office
- Simpler BAS GST bookkeeping guide, Australian Taxation Office
- Exports and GST, Australian Taxation Office