How do you calculate the goods and services tax for your sales which are subject to GST?

First you work out what your sale price (for example, material costs, labour, mark-up etc), then you add 10%.  

Let’s look at an example.

Let’s assume you manufacture and sell running shoes, and you need to work out how much GST to charge on the latest pair of shoes.  

First, work out the total cost base of the shoes (make sure you include the cost of materials, labour costs, markup, profit etc). This amount is your GST exclusive amount. In this instance, let’s say it's $160.

Next, calculate 10% of the GST exclusive amount. You do this by dividing the total cost base by 10.

For example: $160 divided by 10 = $16. This $16 is the GST amount.  

To calculate the final price of your shoes, you add the total cost base amount and the GST amount together.

In this scenario, $160 + $16 = $176. This $176 is the total price of the running shoes (also known as the GST inclusive price).

A simple way to calculate your GST amounts is to use the MoneySmart.gov.au GST calculator. It’s fast, accurate, and user friendly.