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GST on $10,000

Both answers, because "GST on $10,000" 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 $10,000?

  • If $10,000 is before GST: GST is $1,500.00 and the total becomes $11,500.00.
  • If $10,000 already includes GST: the GST portion is $1,304.35 and the price before GST is $8,695.65.
  • Working: $10,000.00 × 1.15 = $11,500.00  ·  $10,000.00 ÷ 23 × 3 = $1,304.35

$10,000, worked both ways

Treating $10,000 as…GSTEx GSTInc GST
a price before GST$1,500.00$10,000.00$11,500.00
a total that includes GST$1,304.35$8,695.65$10,000.00
an Australian price at 10%$1,000.00$10,000.00$11,000.00

The two NZ rows are the ones people mix up. Charging $1,500.00 of GST on an invoice whose total is meant to be $10,000 would leave you $195.65 short once Inland Revenue takes its cut — the GST inside $10,000 is only $1,304.35.

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 →