How high are indirect taxes, such as VAT?

Goods and services tax (GST), which was introduced in 2000, is similar to value added tax (VAT) in Western European countries (or sales tax in the US) and is levied at a flat rate of 10 per cent on most goods and services. GST is included in most quoted prices, although some items are exempt, such as basic foods, cars for the disabled, and certain medical aids and appliances. There are also ‘compensatory measures’ such as the Educational Textbook Subsidy, which the government offered to students when they objected to the 10 per cent increase in the price of books.

   Most businesses are required to register for GST and most must lodge a quarterly return to pay or claim GST, although if a company’s annual turnover exceeds $20m, a monthly return must be made.

For more information see Living and Working in Australia by David Hampshire