Table of contents
- 1. Key takeaways
- 2. GST basics in plain English
- 3. Who needs to register
- 4. Need GST, Afterpay or Zip configured? Tell us your products and markets.
- 5. Set up GST in Shopify
- 6. Business details and ABN
- 7. Tax-inclusive prices for Australia
- 8. Tax on shipping
- 9. Test your checkout
- 10. Pay-later options: Afterpay and Zip
- 11. Shipping in Australia
- 12. Australian Consumer Law basics
- 13. Selling from Australia to other countries
- 14. Mistakes to avoid
- 15. What to do next
- Australian Goods and Services Tax (GST) is a flat 10% tax applicable to taxable sales of goods and services.
- Australian consumer law strictly mandates that all advertised retail prices must be displayed inclusive of GST.
- Businesses must register for GST once their annual turnover reaches or exceeds the A$75,000 statutory threshold.
- Buy Now Pay Later (BNPL) platforms Afterpay and Zip are deeply entrenched payment channels that directly boost Australian checkout conversion.
Australian GST is 10 percent. Most businesses register once turnover reaches A$75,000, and overseas sellers can have GST duties for sales to Australian consumers. Shopify can calculate GST and show GST-inclusive prices. Add Afterpay or Zip where supported and follow Australian Consumer Law. Verify on ato.gov.au.
Statutory Notice: This article is general information, not tax advice. Verify specific liabilities on ato.gov.au and consult a certified Australian tax agent.
GST basics in plain English
The Australian Goods and Services Tax (GST) is a broad-based tax of 10% levied on most goods, services, and other items sold or consumed in Australia. Unlike the United States where sales tax is added at checkout, Australian consumer culture and statutory law demand that retail prices displayed on product pages already include all applicable taxes.
Who needs to register
Under Australian Taxation Office (ATO) regulations, registration is mandatory when:
- Your business has a current or projected GST turnover of A$75,000 or more (or A$150,000 for non-profit organizations).
- You provide taxi or ride-sourcing services (regardless of turnover).
- Overseas Merchants: If you sell low-value imported goods (customs value of A$1,000 or less) to Australian consumers and your gross sales to Australia exceed A$75,000 in a 12-month period, you must register under the ATO simplified GST system and collect 10% GST at point of sale.
Need GST, Afterpay or Zip configured? Tell us your products and markets.
Our dedicated Shopify developers configure GST-inclusive pricing, Australian payment gateways, and local courier profiles for frictionless commerce.
Talk to Us ↗Set up GST in Shopify
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Business details and ABN
In your Shopify Admin, navigate to Settings > Taxes and duties > Australia. Enter your Australian Business Number (ABN) and confirmed GST registration details so Shopify accurately logs tax collection.
Tax-inclusive prices for Australia
Navigate to Settings > Taxes and duties and verify that the checkbox "Include tax in product prices" is enabled. If you sell globally, utilize Shopify Markets international features to display dynamic tax-inclusive prices in Australia while serving tax-exclusive rates to US shoppers.
Tax on shipping
In Australia, domestic freight and shipping charges associated with taxable goods are also subject to 10% GST. Ensure your Shopify shipping settings apply tax to delivery rates.
Test your checkout
Perform an end-to-end test order using an Australian shipping address. Confirm that the cart subtotal, shipping charge, and final price accurately reflect 10% GST without adding unexpected charges on the final payment step.
Pay-later options: Afterpay and Zip
Australia is the birthplace of modern Buy Now Pay Later (BNPL). Consumers expect split-payment options as a standard payment method:
- Afterpay: The dominant player in Australian fashion, beauty, and lifestyle retail. Allows customers to pay in four fortnightly installments.
- Zip (Zip Pay & Zip Money): Highly popular for higher-ticket purchases, offering flexible weekly, fortnightly, or monthly repayment plans.
Integrating Afterpay and Zip via Shopify Payments or native gateway apps dramatically reduces cart abandonment and lifts Average Order Value (AOV) by 25% to 40%. Check plan economics in our Shopify pricing guide.
Shipping in Australia
Australia’s vast geographical footprint presents distinct logistics challenges. Australia Post is the backbone of domestic ecommerce delivery, offering Standard Parcel Post and Express Post with comprehensive tracking. Partnering with multi-carrier platforms (e.g., Shippit, Starshipit, or Sendle) allows you to automate label printing and manage remote territory delivery surcharges effectively.
Australian Consumer Law basics
The Australian Competition and Consumer Commission (ACCC) enforces strict consumer guarantees. Under Australian Consumer Law (ACL), businesses cannot post "No Refunds" policies. Consumers are legally entitled to a repair, replacement, or refund if a product is faulty, unsafe, or fails to perform its promised function.
Selling from Australia to other countries
Goods exported from Australia to international consumers are generally GST-free (zero-rated), provided the goods are exported within 60 days of invoice. Use Shopify Markets to automatically remove the 10% tax for foreign visitors.
Mistakes to avoid
- Displaying Pre-Tax Prices: Quoting prices excluding GST violates ACCC pricing regulations and causes severe checkout abandonment.
- Failing to Provide Compliant Tax Invoices: B2B and high-value shoppers need formal tax invoices showing your ABN and the exact GST component.
- Ignoring Regional Shipping Times: Delivering from Sydney to regional Western Australia can take 5 to 7 days. Display realistic delivery estimates on product pages.
What to do next
Expand your store with confidence. Review our full suite of Shopify store design and development services and collaborate with our dedicated Australian Shopify agency experts to build a compliant, high-converting digital storefront.
Notice: This article is general information, not tax advice. Always consult a certified Australian tax agent and review current rulings at ato.gov.au.
