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GST on $75

Both answers, because "GST on $75" 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 $75?

  • If $75 is before GST: GST is $11.25 and the total becomes $86.25.
  • If $75 already includes GST: the GST portion is $9.78 and the price before GST is $65.22.
  • Working: $75.00 × 1.15 = $86.25  ·  $75.00 ÷ 23 × 3 = $9.78

$75, worked both ways

Treating $75 as…GSTEx GSTInc GST
a price before GST$11.25$75.00$86.25
a total that includes GST$9.78$65.22$75.00
an Australian price at 10%$7.50$75.00$82.50

The two NZ rows are the ones people mix up. Charging $11.25 of GST on an invoice whose total is meant to be $75 would leave you $1.47 short once Inland Revenue takes its cut — the GST inside $75 is only $9.78.

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 →