Pricing seems simple until GST, surcharges and “from” prices enter the picture. If you’re selling to customers in Australia, you’re probably asking: does GST have to be included in the price I advertise?
The short answer: in most consumer-facing situations, yes - your displayed price needs to include GST and any other mandatory charges. There are limited exceptions and some flexibility in B2B contexts, but the rules are strict about what customers see up front.
In this guide, we’ll break down when you must include GST, how to present prices online and in-store, what to do with delivery and card fees, and the compliance traps to avoid. We’ll keep it practical so you can price confidently and stay on the right side of the Australian Consumer Law.
What Is GST And When Do You Need To Register?
Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. If your business has (or expects) $75,000 or more in GST turnover in a 12-month period, you generally need to register for GST.
Once registered, you collect 10% GST on taxable sales and remit it to the ATO (less eligible credits). Practically, that means your “price” to a consumer is usually the GST-inclusive amount they must pay at the checkout.
If you import goods as part of your business model, factor in GST at the border on eligible imports alongside your pricing strategy. Clear visibility of the total price to the customer will help you avoid complaints and build trust from day one.
Do You Have To Include GST In Displayed Prices?
For consumer-facing advertising and promotions, you must show a single total price that includes GST and any other mandatory, quantifiable charges. This “single price” rule comes from the Australian Consumer Law (ACL) and aims to ensure customers aren’t surprised by extra mandatory costs at the end.
What this means in practice:
- If the product or service is taxable, the displayed price should be GST-inclusive.
- If there are unavoidable, quantifiable charges (e.g. a compulsory booking fee), the total price must include them.
- If a fee is genuinely optional (e.g. express shipping), you don’t need to include it in the single price - but you must disclose it clearly before purchase.
If you prefer to mention the GST component, you can add a note like “$110 (includes $10 GST)”. But the prominent figure must still be the total price payable.
Be careful with dual pricing (“$100 ex GST / $110 inc GST”). If you use dual pricing in consumer advertising, the GST-inclusive amount needs to be at least as prominent as the GST-exclusive amount. That’s a common area where businesses slip up.
If you’re unsure how these principles apply to your specific promotions, it’s worth revisiting your approach to advertised price laws and ensuring your displays and ads align with the ACL.
Can You Show Prices Excluding GST For Business Customers?
Many B2B industries commonly quote or advertise ex-GST prices. This can be acceptable if you’re targeting business customers who understand GST - but there are conditions.
Good practice when displaying ex-GST prices to business customers includes:
- Make it crystal clear that the price is “ex GST”. The disclosure should be obvious and near the price.
- Where feasible, also show the GST-inclusive figure or state that GST will be added at 10% at checkout or invoice.
- For quotes, consider summarising the subtotal, GST amount and total. This reduces confusion and disputes later.
Even in B2B contexts, if there’s any chance consumers will see your pricing (e.g. your website is publicly accessible), keep the GST-inclusive price prominent to reduce legal risk. Misleading presentation can still breach the ACL’s general prohibition on misleading or deceptive conduct under section 18, and false or misleading representations about price can also raise issues under section 29.
If you’re issuing formal quotes and want to set expectations around timing, surcharges or deposit rules, it helps to align your quote format with your Terms of Sale so everything matches what the customer will actually pay.
How Should GST Appear Online, In-Store And On Invoices?
The rules are the same across channels - customers should see the total price they’ll pay, including GST and mandatory charges. Here’s how that plays out in common scenarios.
Online Stores And Apps
- Product pages: Display a clear, GST-inclusive price. If you also show an ex-GST figure, ensure the inclusive price is at least as prominent.
- Cart and checkout: Show a running total that includes GST and any mandatory fees before payment. If shipping is mandatory, include a default option or make postage clear early.
- Promotions: If you advertise “from $X”, make sure representative products are actually available at that price, GST-inclusive, with any conditions clearly stated.
Your customer-facing legal content should reinforce what customers see at checkout. A tailored Website Terms and Conditions and clear Terms of Sale help manage how prices, fees, refunds and delivery are handled on your site. If you collect personal information for orders, ensure your Privacy Policy is up to date and accessible.
Menus, Shelf Labels And In-Store Signage
- Menus and shelf tickets should show GST-inclusive prices for taxable items.
- Promos like “20% off” must be genuine and calculated off the current GST-inclusive price.
- Multi-buy or bundled offers should present the total payable for the bundle, including GST.
Where you accept different payment methods, any price differences or surcharges should be transparent, truthful and not misleading. If you’re considering cashless-only policies, review whether refusing cash is appropriate for your customers and location, and ensure your price displays align with your accepted payment methods.
Quotes, Invoices And Tax Invoices
- Quotes: It’s common to present a subtotal, the GST amount and the total. If you quote ex-GST, make it explicit and ideally include the GST amount and total payable.
- Invoices: If you’re registered for GST and issuing a tax invoice, include the elements required by the ATO (including your ABN, the GST amount or a statement that the total includes GST, and a clear total).
- Payment terms: Spell out due dates, methods and any late fees consistently across your quotes, invoices and customer terms. For clarity on due dates and enforcement, align your documents with how you’re setting invoice payment terms.
Surcharges, Delivery Fees And “Drip Pricing”: What’s Allowed?
Customers should not be surprised by mandatory add-ons late in the purchase journey. The ACL addresses this through the single price rule and broader misleading conduct provisions.
Key points to remember:
- Mandatory, quantifiable fees must be included in the single price. If you always charge a booking fee, it should be included in the displayed total price.
- Optional fees don’t need to be in the single price. If express shipping is optional, you can add it later - but disclose the cost clearly before the customer commits to purchase.
- Delivery: If delivery is unavoidable to receive the goods (e.g. there is no pickup), you should be transparent about the delivery cost as early as possible, and ensure the final single price before payment includes it.
- Card surcharges: If you pass on payment processing fees, disclose them early and calculate them accurately. Avoid inflating surcharges beyond your costs.
“Drip pricing” - where unavoidable fees appear late in the process - attracts ACCC scrutiny. Even if your GST handling is technically correct, a pricing journey that surprises customers can still breach the general prohibition on misleading or deceptive conduct under section 18.
To reduce risk, map your customer journey and ensure the single, total price is clear and prominent before a customer makes a purchase decision. Your internal pricing workflow and your public-facing terms should tell the same story. If you’re updating your advertising strategy, it’s a good time to revisit your advertised price laws obligations too.
Key Takeaways
- For consumer-facing promotions and displays, show a single total price that includes GST and any mandatory, quantifiable fees.
- In B2B contexts you can reference ex-GST figures, but make “ex GST” clear and, where possible, show the GST and total to avoid disputes.
- Online product pages, carts and checkout screens should present the GST-inclusive total before payment; the same clarity applies to menus, shelf labels and in-store signage.
- Mandatory fees (like compulsory booking charges) belong in the single price; optional extras (like express shipping) can be added later with clear disclosure.
- Misleading or confusing pricing can breach the ACL’s rules, including the single price requirement and prohibitions under section 18 and section 29.
- Make your legal documents work for you: align quotes, invoices and your website with clear Terms of Sale, robust Website Terms and Conditions, and an up-to-date Privacy Policy.
- If you set different payment methods or surcharges, ensure pricing displays and policies reflect those choices, and consider whether refusing cash suits your customers and location.
If you’d like a consultation on pricing compliance and GST-inclusive displays for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
