10% GST inclusive or exclusive.
Total with GST
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GST
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Pre-GST
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Worked example
Take a pre-GST price of $100 and add 10 percent GST. The GST is $100 times 0.10, which is $10, so the GST-inclusive total is $110. Now run it the other way. Starting from a $110 GST-inclusive total and extracting the tax, you divide $110 by 1.1 to get the pre-GST amount of $100, and the GST portion is the $10 difference. A handy shortcut for the extraction case is that the GST is always one eleventh of any GST-inclusive amount, because $110 divided by 11 is $10. Both directions agree, which is the check a BAS preparer relies on.
| Direction | Pre-GST | GST | Total |
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How it is calculated
Australian GST is a flat 10 percent on most goods and services. In add mode the calculator multiplies the pre-tax amount by 10 percent to get the GST, then adds it to give the inclusive total. In extract mode it works backwards from a GST-inclusive figure by dividing by 1.1 to recover the pre-tax base, and the GST is whatever is left over. The reason the GST is one eleventh of an inclusive price, rather than one tenth, is that the 10 percent was added to the smaller pre-tax base, so as a share of the larger total it shrinks to 1 divided by 11. Figures are rounded to the cent. Some items such as basic food, health, and education are GST-free, so apply this only to taxable supplies.