GST-Free Items in Australia
In Australia, most goods and services include 10% Goods and Services Tax (GST). However, some items are classified as GST-free, meaning GST is not charged to the customer.
GST-free supplies are designed to make essential goods and services more affordable. Even though GST is not charged, businesses selling GST-free items can still claim GST credits on business expenses related to those sales.
Understanding which items are GST-free helps businesses correctly calculate prices, prepare invoices, and report GST in their Business Activity Statement (BAS).
Use our GST Calculator to add or remove GST instantly.
Updated: 2026
GST-free items — at a glance
In Australia, GST-free items typically fall into several categories:
- Basic food products
- Most medical and health services
- Education courses
- Childcare services
- Exports of goods and services
- Certain charitable activities
Businesses selling GST-free items do not charge GST, but they may still claim GST credits for expenses.
What does GST-free mean?
A GST-free supply means that GST is not included in the price of the product or service.
However, businesses selling GST-free items can still claim input tax credits for GST paid on related business purchases.
This differs from input-taxed supplies, where GST is not charged but businesses cannot claim GST credits.
Common GST-free food in Australia
Many essential food items are GST-free under Australian tax law.
| Category | Examples | GST Status |
|---|---|---|
| Fresh fruit and vegetables | Apples, bananas, lettuce | GST-free |
| Meat and seafood | Raw meat, fresh fish | GST-free |
| Bread and cereals | Basic bread, rice, oats | GST-free |
| Milk and dairy products | Milk, cheese, yoghurt | GST-free |
| Eggs | Chicken eggs | GST-free |
Examples of food that includes GST:
- Restaurant meals
- Takeaway food
- Soft drinks
- Confectionery and chocolate
- Snack foods such as chips
GST-free medical and health services
Many healthcare services in Australia are GST-free.
| Service | GST Status |
|---|---|
| GP consultations | GST-free |
| Specialist medical services | GST-free |
| Dental services | GST-free |
| Physiotherapy | GST-free |
| Medicare-funded treatments | GST-free |
Medical products and medications prescribed by a doctor are often GST-free as well. However, some cosmetic or elective treatments may still include GST.
GST-free education services
Education services are also commonly GST-free. Examples include:
- Primary school education
- Secondary school education
- University and tertiary courses
- Vocational education and training
- English language courses for overseas students
Private tutoring services may be GST-free when they relate directly to an approved education course.
GST-free exports
Exports of goods and services outside Australia are generally GST-free.
| Export Type | GST Status |
|---|---|
| Goods exported overseas | GST-free |
| International transport services | GST-free |
| Services provided to overseas customers | GST-free |
This allows Australian businesses to remain competitive in international markets.
Want to calculate GST?
If you are unsure whether GST should be included in a price, our calculator can help you add GST, remove GST, calculate GST components for invoices, and prepare figures for BAS reporting.
Use the GST Calculator →GST-free vs input-taxed supplies
It is important to understand the difference between GST-free and input-taxed supplies.
| Type | GST Charged | GST Credits |
|---|---|---|
| GST-free | No | Yes |
| Input-taxed | No | No |
| Taxable supply | Yes (10%) | Yes |
Examples of input-taxed supplies include:
- Residential rent
- Financial services
- Lending and loan interest
Common GST mistakes businesses make
Many businesses incorrectly apply GST because they misunderstand GST-free rules. Common mistakes include:
- Charging GST on GST-free items
- Assuming all food is GST-free
- Claiming GST credits incorrectly
- Failing to distinguish between GST-free and input-taxed supplies
Using a GST calculator and keeping clear records helps avoid BAS reporting errors.
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