Confirm the scenario before calculating
| Question | Who owns the answer | Use in this scenario |
|---|---|---|
| Is the business required or eligible to register? | ATO guidance and professional advice | Enter the status explicitly; do not infer it |
| Is this sale taxable? | GST law, ATO guidance and professional advice | Use the formula only after selecting taxable sale |
| What price does the customer see? | Business pricing decision | Compare exclusive and inclusive presentation |
| What revenue is retained before costs? | Business records and calculation | Remove the GST component from the inclusive amount |
| Can input tax credits be claimed? | GST rules and professional advice | Do not decide eligibility here |
Reconcile retained revenue before and after a price decision
| Record | Current scenario | Proposed scenario | Decision check |
|---|---|---|---|
| GST-exclusive price | Current retained-revenue basis | Proposed retained-revenue basis | Compare contribution and margin on one excluding-GST basis |
| GST component | Current collected amount | Proposed collected amount | Do not count either amount as retained revenue |
| GST-inclusive customer price | Current displayed amount | Proposed displayed amount | Compare the actual customer-facing price |
Use one basis at a time
GST-inclusive price = GST-exclusive price × (1 + GST rate)
- GST-exclusive price
- Amount before GST in the selected taxable-sale scenario (A$ per unit) — user input
- GST rate
- Current rate from the reviewed ATO dependency (ratio) — ATO policy dependency
GST component of an inclusive price = inclusive price × GST rate / (1 + GST rate)
- inclusive price
- Customer-facing amount including GST (A$ per unit) — user input
- GST rate
- Current reviewed rate expressed as a decimal (ratio) — ATO policy dependency
Worked Australian taxable-sale scenario
Assumptions: registered business, taxable sale, 10% GST, and no decision about input tax credits.
| Line | Amount | Meaning |
|---|---|---|
| GST-exclusive price | A$100.00 | Retained revenue before other costs in this scenario |
| GST component | A$10.00 | Amount collected for GST in this simplified presentation |
| GST-inclusive customer price | A$110.00 | Amount displayed to the customer |
Record the assumptions and refresh trigger
- Registration status and taxable-sale assumption are explicitly confirmed. (not complete)
- Inputs and outputs are labelled including or excluding GST. (not complete)
- GST collected is not counted as retained revenue. (not complete)
- Input-tax-credit eligibility is kept outside the calculator decision. (not complete)
- ATO source records and acknowledged dependency versions are current. (not complete)
- The scenario is reviewed when registration, sale treatment or the source dependency changes. (not complete)
Reviewed source records
- Margin101: ATO GST rate source record — Margin101
- Margin101: ATO GST registration source record — Margin101
- Australian Taxation Office: Goods and services tax — Australian Taxation Office: Primary GST overview; rate-specific claims remain bound to the Margin101 DataHub record.
GST pricing questions
- Can this guide decide whether a business must register for GST?
- No. Use the current ATO registration guidance and qualified advice for the business circumstances; the scenario requires status to be selected explicitly.
- Can the calculator decide whether a sale is taxable?
- No. The worked example applies only after a taxable-sale scenario has been confirmed.
Related tools
- Australia GST-aware Pricing Planner
Set a retained margin using confirmed taxable-supply and GST-inclusive or exclusive treatment
- Target Margin & Pricing Planner
Set a price for a target gross margin