Selling online in Australia means staying compliant with GST (Goods and Services Tax) regulations. If you’re running your store on Shopify, configuring GST correctly ensures you’re collecting the right amount of tax, displaying it transparently to your customers, and preparing for BAS (Business Activity Statement) reporting.
If you’re just starting your e-commerce journey, you can create your store for free here: https://shopify.pxf.io/1dolarJ
What Is GST and When Do You Need to Register?
GST is a 10% tax applied to most goods and services sold in Australia. You’re required to register for GST if:
- Your turnover exceeds AUD 75,000 per year
- You’re a rideshare or taxi service provider
- You want to claim GST credits for your business expenses
Once you’re registered, you must charge GST on taxable sales and report it to the ATO.
You can create your store for free here if you’re ready to launch a compliant e-commerce business: https://shopify.pxf.io/1dolarJ
How to Enable GST in Shopify
Step 1: Log in to your Shopify admin
Step 2: Go to Settings > Taxes and duties
Step 3: Under “Tax regions,” click Australia
Step 4: Enable Collect GST
Step 5: Enter your Australian Business Number (ABN)
Make sure to select “Include tax in product prices” if you prefer to display prices as GST-inclusive, which is common in Australia.
Setting GST-Inclusive Pricing
Australian consumers expect to see the final price upfront. In Shopify, you can set your product prices to include GST. To do this:
- Go to Settings > Taxes and duties
- Tick “All prices include tax”
Shopify will automatically calculate the GST portion (1/11 of the total price). For example, a $110 product includes $10 GST.
Launch your store with correct pricing from day one—create your store for free here: https://shopify.pxf.io/1dolarJ
Customising Tax Rates and Exemptions
Some products, such as basic food items or healthcare goods, may be GST-exempt. If you sell such items:
- Create a custom tax override in Shopify
- Assign a 0% rate to the product category or individual item
This ensures you’re only charging GST on applicable products, reducing errors on your BAS.
GST on Shipping Costs
In Australia, shipping fees are typically subject to GST. Shopify handles this by default when you enable tax on shipping:
- Go to Settings > Taxes and duties
- Click Australia
- Enable “Charge tax on shipping rates”
Double-check that this option is active, especially if you offer calculated or flat-rate shipping.
Build your store to be compliant and professional—create your store for free here: https://shopify.pxf.io/1dolarJ
Reporting GST for the ATO
When it’s time to submit your BAS, you can pull GST reports from your Shopify admin:
- Go to Analytics > Reports
- Use Finance Summary or Taxes report
- Export data for your accounting software or accountant
You’ll need to report both GST collected on sales and GST paid on expenses (if you’re eligible to claim credits).
Using Shopify with Australian Accounting Software
To streamline BAS preparation and compliance, integrate Shopify with software like:
- Xero
- MYOB
- QuickBooks Online
These tools help automate your reporting, track GST liabilities, and avoid penalties.
Starting with the right tools makes tax compliance easier—create your store for free here: https://shopify.pxf.io/1dolarJ
Important GST Tips for Australian Shopify Sellers
- Keep your ABN and GST registration current
- Always back up your records for at least five years
- Separate GST from revenue in your accounting
- Apply overrides where exemptions exist
- Review tax settings after theme or app changes
And of course, consult a registered tax agent or accountant to ensure your setup meets all ATO requirements.
If you haven’t yet started your online business, you can create your store for free here: https://shopify.pxf.io/1dolarJ
