Goods and Services Tax

Goods and Services Tax (GST) is a tax on most goods, services and other items sold.

How is GST Calculated?

GST is a fixed 10% of the purchase price on most goods and services.

Sale price $=1.1\times$ purchase price

Example 1

What is the sale price (including GST) of a chair that has a pre-GST price of $200.

Sale price $=1.1\times$ purchase price
Sale price $=1.1\times 200$
Sale price $=220$

The sale price of the chair is $220.

Example 2

What is the pre-GST price of a $400 table?

Make pre-GST price the subject of the equation.

Pre-GST price $=\dfrac {sale price}{1.1}$
Pre-GST price $=\dfrac {400}{1.1}$
Pre-GST price $=363.6364$

The price of the table before GST is $363.64

Feedback

Want to suggest an edit? Have some questions? General comments? Let us know how we can make this resource more useful to you.

More Resources

VCAA Pages

Useful Sites

Revision Resources

While we endeavour to provide you with great study material - we’re not qualified teachers, as such Engage cannot guarantee the validity of the information here.

The Victorian Curriculum and Assessment Authority (VCAA) does not endorse this website and makes no warranties regarding the correctness or accuracy of its content. VCE is a registered trademark of the VCAA. Current and past VCE exams and related content can be accessed directly at www.vcaa.vic.edu.au

Contents