GST in Australia 2025: Latest Updates & What It Means for You

The Goods and Services Tax (GST) has been a cornerstone of Australia’s taxation system since its introduction in 2000, affecting almost every purchase Australians make. In 2025, GST is once again in the spotlight, with new policy tweaks, emerging trends in compliance, and digital reporting requirements shaking up the landscape. Whether you’re a business owner, investor, or everyday consumer, understanding how GST works—and what’s changing—can help you make smarter financial choices.

GST in 2025: What’s Changed?

This year, GST isn’t just business as usual. The Australian government has rolled out several updates impacting both businesses and consumers:

• Digital GST Reporting: All businesses with annual turnover above $75,000 must now use real-time digital GST lodgement, streamlining compliance and reducing errors.

• Expanded GST on Digital Goods and Services: Following international trends, GST now applies to a broader range of digital products and services, including streaming subscriptions, e-books, and online courses purchased from overseas providers.

• Clampdown on the Cash Economy: The ATO is intensifying efforts to combat GST evasion in cash-heavy sectors like hospitality and construction, with new data-matching and AI-powered audits.

These changes aim to close loopholes and modernise tax collection, but they also mean more touchpoints for everyday Australians.

How GST Impacts Your Everyday Finances

GST is a 10% tax applied to most goods and services sold or consumed in Australia. For individuals and families, it’s a silent partner in almost every transaction—groceries, electronics, fuel, and even some digital subscriptions now carry the GST tag. Here’s how it influences your budget in 2025:

• Rising Cost of Digital Services: With the expanded GST net, services like Netflix, Spotify, Coursera, and Kindle books may cost slightly more this year.

• Travel and Imports: Shopping from overseas retailers? GST is charged on low-value imports (under $1,000) at checkout, closing a former loophole that allowed many small parcels to avoid the tax.

• Small Business Purchases: GST-registered businesses can claim credits for GST paid on business expenses, but must carefully track input and output tax to avoid compliance headaches.

For example, a family streaming three different services could see their annual entertainment budget rise by $30–$50 due to GST changes. Meanwhile, small business owners must ensure their accounting software is up-to-date to handle the new digital reporting requirements.

Tips to Stay Ahead of GST Changes

With GST touching so many aspects of financial life, a few strategic moves can help you minimise surprises and maximise benefits:

• Use Accounting Software: For business owners, leveraging cloud-based accounting tools (like Xero or MYOB) ensures GST is tracked and reported accurately, especially with the ATO’s digital lodgement mandate.

• Check Your Receipts: Consumers should look for GST-inclusive pricing and keep receipts for big-ticket items—handy for warranty claims and, in some cases, claiming GST refunds when leaving Australia.

• Stay Informed on Exemptions: Not everything is subject to GST. Basic groceries, most healthcare, and some education expenses remain GST-free. Knowing what’s exempt helps you spot errors and challenge incorrect charges.

• Review Digital Subscriptions: Consider bundling or trimming digital services to offset the GST-driven price hikes, and always check if GST is included in the quoted price before you buy.

Australians are also increasingly using budgeting apps that factor in GST, giving a clearer picture of true after-tax spending.

What’s Next for GST?

With ongoing debate about the scope and rate of GST—some economists calling for a rate increase or further expansion—staying engaged with policy developments is crucial. For now, the focus remains on tightening compliance, taxing the digital economy, and ensuring fairness between local and overseas providers.