Calculating GST
With the current GST rate of 12.5% it is easy to calculate the GST component of a GST inclusive price by simply dividing by 9.
It won't be so simple after 1 October when GST increases to 15%.
GST-Inclusive
To calculate the GST component of a GST-inclusive amount you'll need to multiply by 3 then divide by 23.
For example:
Let's assume the price of goods is $1,150 including GST
The GST component is $1,150 x 3 ÷ 23 = $150
GST-Exclusive
To calculate the GST component of a GST-exclusive amount, multiply by 15%.
For example:
The GST component is $1,000 x 15% = $150
This publication is intended to raise your awareness of some of the issue as a result of the GST rate increase. It is not intended to give you detailed or specific advice as it has been written in general terms only. This publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
