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GST on $10

Both answers, because "GST on $10" means two different things depending on whether that figure already includes GST.

NZ 15% and AU 10% Add or remove GST Sends straight to an invoice
$
Total including 15% GST
$115.00
Excluding GST$100.00
GST$15.00
Including GST$115.00

How much GST is on $10?

  • If $10 is before GST: GST is $1.50 and the total becomes $11.50.
  • If $10 already includes GST: the GST portion is $1.30 and the price before GST is $8.70.
  • Working: $10.00 × 1.15 = $11.50  ·  $10.00 ÷ 23 × 3 = $1.30

$10, worked both ways

Treating $10 as…GSTEx GSTInc GST
a price before GST$1.50$10.00$11.50
a total that includes GST$1.30$8.70$10.00
an Australian price at 10%$1.00$10.00$11.00

The two NZ rows are the ones people mix up. Charging $1.50 of GST on an invoice whose total is meant to be $10 would leave you $0.20 short once Inland Revenue takes its cut — the GST inside $10 is only $1.30.

The two calculations

× 1.15

Adding GST to a GST-exclusive price.

÷ 23 × 3

Finding the GST already inside a total.

÷ 1.15

Stripping GST out to get the ex-GST price.

Taking 15% of a GST-inclusive figure is the common error — it overstates the GST every time. Full guide, with the registration rules and the $60,000 threshold →