Ex GST Pricing in Australia: What It Means and How to Get It Right

If you sell goods or services in Australia, you’ve probably seen “ex GST” and “inc GST” on quotes and invoices. Getting this right isn’t just an accounting preference - it affects how you advertise prices, what your sales team says to customers, and what appears on your tax invoices.

Handled well, a clear approach to GST builds trust and keeps you compliant. Handled poorly, it can lead to complaints, refund obligations, and penalties. In this guide, we’ll explain what “ex GST” means, when you can use it, and how to set up your pricing, sales collateral and contracts correctly.

What Does “Ex GST” Mean?

“Ex GST” means the price does not include the 10% Goods and Services Tax (GST). You add GST to arrive at the total price payable, unless the supply is GST-free or input taxed.

By contrast, “inc GST” means the 10% GST is already included in the displayed or quoted price. The total the customer pays is the amount shown.

When Does GST Apply?

GST is generally charged on most goods and services sold in Australia by businesses registered for GST. You must register if your annual GST turnover is $75,000 or more ($150,000 for non-profits). Some supplies are GST-free (for example, many basic foods, health and education services) or input taxed (such as certain financial supplies and residential rent). Mixed supplies may need to be apportioned.

Calculating GST From An Ex GST Price

If your price is ex GST, multiply by 10% to calculate the GST and add it to get the total payable. For example, $1,000 ex GST + $100 GST = $1,100 inc GST. If a price is inc GST and you need the pre-GST amount, divide by 1.1 (e.g. $1,100 inc GST ÷ 1.1 = $1,000 ex GST).

Can You Advertise Prices Ex GST In Australia?

It depends on who you’re targeting and how you present the price. Australian Consumer Law (ACL) requires that when you advertise prices to consumers, you show a single (total) price that includes all mandatory charges, including GST, as prominently as any other price. This “single price” rule helps everyday customers avoid bill shock at checkout.

Price advertising to business customers (B2B) can lawfully use ex GST figures, but you must do it carefully to avoid misleading conduct. The safest approach is to state both the ex GST amount and the total inc GST amount clearly and together, especially in any public-facing advertising or website listing. The more “consumer-facing” your channel is, the more important it is to emphasise the total inc GST price.

If you advertise any price, ensure it’s accurate, not misleading, and consistent with your checkout. For more on how to present prices lawfully, it’s worth reviewing advertised price laws and your obligations under the ACL.

Ex GST In B2B Sales

In B2B markets, it’s common to quote ex GST because many customers are also registered for GST and can claim input tax credits. If you choose to lead with ex GST pricing:

• Make the “+ GST” qualifier clear and close to the price.
• Include the inc GST total on quotes and order forms so buyers have the full payable amount.
• Avoid small print that changes the price materially - this risks being misleading under the ACL’s prohibitions on false or deceptive representations.

If you sell online, align your product pages, cart and checkout screens so the total payable inc GST is obvious prior to purchase. Your Website Terms & Conditions should match how you display prices on-site.

Ex GST On Quotes, Invoices And Contracts

Using “ex GST” consistently across quotes, invoices and contracts prevents disputes and supports compliance.

Quotes And Proposals

Quotes should state whether prices are ex GST or inc GST, and ideally show the total payable inc GST. If your quote includes optional add-ons, shipping, or variable components (like hourly rates), explain whether GST applies to each item and how it will be calculated.

For project-based or complex work, attach short, clear quote terms - for example, payment stages, variations, and what’s included. A tailored set of quote terms and conditions helps you avoid scope creep and arguments about tax treatment (like whether expenses are ex GST).

Tax Invoices

If you’re registered for GST, tax invoices must meet certain requirements. For sales of $82.50 or more (including GST), a compliant tax invoice generally needs to include:

• The words “Tax Invoice”
• Your business name and ABN
• Invoice date
• A description of the goods or services
• The price and the GST amount for each line (or a statement that the total includes GST)
• The total payable (ideally with the GST shown clearly)

Where practical, show line items ex GST, the GST amount and the total inc GST to make the GST calculation transparent. If you and your customer use purchaser-issued invoices, make sure your arrangements comply with rules for Recipient Created Tax Invoices.

Customer Contracts And Terms

Your customer-facing contract should say whether prices are ex GST, how GST is calculated, and who pays any taxes, duties or surcharges. A short clause can prevent disputes like “I assumed your price included GST.”

For straightforward sales, this can sit within your Terms of Trade or standard Service Agreement. If you sell online, your pricing and tax language should also appear in your Website Terms & Conditions so it’s easy to find before checkout.

Payment Terms And Late Fees

Spelling out payment timeframes, invoicing cycles and acceptable methods reduces cash flow stress. Consider documenting your invoice payment terms and, where appropriate, a fair late fee arrangement that complies with the ACL and unfair contract terms regime. If you intend to apply late fees, ensure they’re reasonable and clearly disclosed - more detail is in our guide to late payment fees.

Step-By-Step: Implement An Ex GST Pricing Policy In Your Business

If you’re moving to ex GST pricing or want to tighten your current approach, follow these steps.

1) Decide When You’ll Use Ex GST Vs Inc GST

Start by mapping your sales channels and audiences. For B2C and public advertising, plan to lead with a single price inc GST to meet ACL expectations. For B2B tenders and quotes, you may choose to lead with ex GST but show both figures side-by-side to avoid confusion.

2) Standardise Your Price Language

Choose consistent wording such as “$X ex GST” or “$X + GST” and “Total inc GST $Y”. Create a short internal style guide so your team uses the same phrases on proposals, emails and invoices. Consistency reduces the risk of misunderstandings.

3) Update Contracts, Terms And Templates

Review your customer contracts, proposal templates and online terms to ensure they clearly deal with GST. This includes how GST applies to fees, reimbursable expenses, shipping and surcharges, and what happens if the GST rate changes.

For many small businesses, updating your Terms of Trade, Service Agreement and Website Terms & Conditions covers most bases. If you collect customer data online, make sure your Privacy Policy aligns with how you transact and communicate.

4) Configure Accounting And Checkout Systems

Set up your accounting software to display GST correctly on invoices, including ex GST amounts, GST and inc GST totals. For ecommerce, check the behaviour of product pages, cart and checkout so customers see the inc GST total before paying.

If you accept recurring direct debits or subscriptions, be clear about whether published prices are ex GST and whether GST may change over time. If you’re using direct debit forms, make sure you also meet direct debit laws.

5) Train Your Sales And Customer Service Teams

Provide scripts and examples that show how to talk about ex GST and inc GST prices. Reinforce the rule that whenever a customer asks “what will I pay?”, the answer must be the total inc GST.

6) Build In Quality Checks

Before running campaigns, proof your ads and landing pages for price clarity. Compare the advertised price with the checkout total. Schedule periodic checks of your invoice templates to ensure they still meet tax invoice requirements.

Common Pitfalls To Avoid With Ex GST

Even well-intentioned businesses get caught by these issues. Keep an eye out for the following.

Only Showing Ex GST In Consumer Channels

On websites, social media, in-store signage and other consumer-facing places, leading with ex GST alone can breach the ACL’s single price requirement. Where you communicate a price, present the total inc GST clearly and at least as prominently as the ex GST price (if you mention it at all).

Fine Print That Changes The Price

If the fine print turns “$100 ex GST” into “$100 + a mandatory $30 fee + GST,” you risk misleading customers. Under the ACL’s rules against false or deceptive representations (including specific bans on misleading price representations), the headline price must reflect what a customer will actually pay. Make sure all unavoidable charges are included in the main price display. If you’re unsure whether your presentation crosses the line, review the principles in section 29 of the ACL.

Inconsistent Templates

We often see quotes marked “ex GST,” a contract that says fees are “inclusive of GST,” and an invoice that shows neither. This inconsistency invites disputes. Pick a policy, document it, and update every template so they match.

Forgetting To Show GST On Tax Invoices

Leaving out the GST amount (or not stating that the total includes GST) can cause headaches for your customers who need valid input tax credits - and for you at BAS time. Build a standard layout that shows ex GST, GST and inc GST totals so your invoices are clear.

Not Accounting For Mixed Or GST-Free Items

If you sell a mix of taxable and GST-free items, make sure your system calculates GST line-by-line and your invoice reflects the correct tax treatment. The same goes for expenses you recharge to clients - your contract should state whether those recharges are ex GST and how you’ll apply GST on top.

Ambiguous Quotes And Purchase Orders

Procurement teams may send purchase orders that assume ex GST or inc GST. If their PO conflicts with your quote, clarify in writing before starting work. Using clear Terms of Trade or a signed Service Agreement helps align expectations from the outset.

Omitting Payment And Enforcement Clauses

It’s easy to focus on price and forget how and when you’ll be paid. Include payment timing, accepted methods, and consequences for late payment. Align your invoices and statements with your documented payment terms, and if applicable, a compliant approach to late fees.

FAQs About Ex GST For Small Businesses

Do I Have To Register For GST To Use Ex GST Pricing?

You can display prices ex GST whether or not you’re registered; “ex GST” is simply a way of expressing the price before tax. However, you must not charge GST unless you’re registered for GST. If you’re not registered and your prices say “ex GST,” make sure you are not adding GST on top at checkout.

Should I Put Ex GST Or Inc GST On My Website?

If your site is public-facing and you sell to consumers, you should display the total inc GST price. You can also show the ex GST price for B2B clarity, but the inc GST price needs to be at least as prominent. Align your website display with your Website Terms & Conditions and checkout screens.

What About Shipping And Surcharges?

Where shipping or card surcharges are mandatory, the ACL expects your displayed total to include them or to make the total payable clear before purchase. If they vary, be transparent about how they are calculated. Apply GST to these charges where required and show the inc GST total before the customer commits to buy.

How Do I Handle Discounts And GST?

GST is calculated on the price after discounts. If you discount an ex GST price, apply the discount first, then calculate GST on the discounted amount, and show the new inc GST total.

Do I Need Special Wording In My Contracts?

Yes - include a short clause stating whether prices are ex GST or inc GST, that GST is payable in addition (if ex), and how GST will be calculated on expenses, shipping and other charges. Use concise wording in your Service Agreement or Terms of Trade, and mirror it on your invoices.

Key Takeaways

• “Ex GST” means GST is added to the displayed price; “inc GST” means it’s already included in the total the customer pays.
• For consumer-facing advertising and websites, the ACL requires a single price inc GST to be displayed clearly and prominently.
• In B2B sales you can show ex GST, but always make the total inc GST clear to avoid misunderstandings and reduce dispute risk.
• Use consistent language across quotes, tax invoices and contracts, and include simple clauses that explain how GST applies to fees and recharged costs.
• Configure your systems so invoices show ex GST, GST and inc GST totals, and make sure your templates meet tax invoice requirements.
• Document payment timing and enforcement in your payment terms, and be careful with late fees so they’re reasonable and properly disclosed.
• A quick audit of your pricing display, Website Terms & Conditions, quotes and contracts will help your team use “ex GST” correctly and stay compliant.

If you’d like a consultation on setting up ex GST pricing, customer terms and compliant invoices for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.