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.

Not so simple after 1 October when GST increases to 15%.

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

To calculate the GST component of a GST-exclusive amount, multiply by 15%.

For example:

The GST component is $1,000 x 15% = $150