GST Exclusive Vs Inclusive: Displaying & Charging Prices In Australia

GST can feel like alphabet soup when you’re juggling everything else in your business. One of the quickest wins is getting crystal clear on when to use GST exclusive pricing and when you must show prices inclusive of GST.

This affects your website, menus, quotes, invoices, and even the way you negotiate with customers. Do it well, and you’ll build trust, stay compliant and avoid awkward price disputes. Get it wrong, and you risk customer complaints, Australian Consumer Law (ACL) issues and delays getting paid.

In this guide, we’ll break down what “GST exclusive” and “GST inclusive” mean in Australia, how to calculate each, where and when to use them, and the legal risks to watch. We’ll also share practical tips so your pricing, quotes and invoices work smoothly in the real world.

What Does GST Exclusive And Inclusive Mean?

Goods and Services Tax (GST) in Australia is generally 10%. When you present a price:

• GST inclusive means the price already has the 10% GST included in the amount shown (the customer pays exactly what they see).
• GST exclusive means the price does not yet include GST. If GST applies, you’ll add 10% on top at checkout or on the invoice.

Both are common in business. The key is knowing your audience and context, and labelling clearly so no one is misled.

Quick Examples

• $110 incl. GST = $100 + $10 GST
• $100 ex GST = $100 + $10 GST = $110 to pay (if GST applies)

When Should You Show Prices Inclusive Of GST?

Australian Consumer Law focuses on ensuring consumers are not misled about price. If you’re marketing or selling to consumers (B2C) and GST applies, you generally must display the total price the consumer will pay, which means inclusive of GST, and it needs to be at least as prominent as any other figure.

For example, if you run an online store, your product pages should show a clear total price inclusive of GST (if GST applies). If you also provide an ex-GST figure for business customers, make sure the inclusive amount is clear and not hidden or less prominent. This reduces the risk of misleading representations under the ACL, including the rules captured in section 29 about false or misleading statements.

If your sales are predominantly B2B, exclusive pricing may be acceptable provided it’s clear the price is ex GST. However, if there’s any chance a member of the public will rely on those prices, the safer approach is to present the GST-inclusive price prominently, or clearly label both.

To keep your signage, website and promotional material compliant, consider your obligations under advertised pricing laws. Having well-drafted Online Shop Terms & Conditions can also help you explain how prices are displayed, when GST applies, and what happens at checkout.

Key Points For Displaying Prices

• Include the total price (including GST) for consumer-facing pricing where GST applies.
• If you show ex GST pricing, label it “ex GST” and make the GST-inclusive total clear and prominent.
• Avoid drip pricing tactics (adding unavoidable fees late in the purchase process) as this can mislead customers.
• Make sure your website and marketing copy match your actual checkout or invoicing calculations.

How To Calculate GST Inclusive And Exclusive Amounts

Once you understand the formulas, price calculations become quick and consistent across your quotes and invoices.

From Ex GST To Inc GST

Formula: Ex GST amount × 1.10 = Inc GST total.

Example: $850 ex GST × 1.10 = $935 inc GST.

From Inc GST To Ex GST

Formula: Inc GST total ÷ 11 × 10 = Ex GST amount (equivalently, divide by 1.10).

Example: $1,320 inc GST ÷ 1.10 = $1,200 ex GST. GST component is $120.

Finding The GST Component

• If you have the ex GST amount: Ex GST × 10% = GST.
• If you have the inc GST amount: Inc GST ÷ 11 = GST.

Rounding Tips

Use consistent rounding rules and keep them the same across your quotes and invoices. This prevents small discrepancies that cause confusion at payment time. Your Terms of Trade can set expectations around how you calculate and round totals and how taxes and fees are applied.

GST Exclusive Prices On Quotes, Proposals And Invoices

Many small businesses prefer quoting ex GST because it’s easier to compare base costs or because clients expect to see a headline “before tax” price. That’s fine - as long as your documents and communication are clear and accurate.

Quotes And Proposals

• Label prices as “ex GST” if GST is not included in the figure shown.
• State whether GST applies to all or some line items (e.g. services vs disbursements).
• Show the GST amount and the total payable (inclusive of GST) somewhere obvious before the client accepts.
• Align your quote templates with your Terms of Trade so there’s no mismatch on pricing, taxes, or payment timing.

Invoices

If you’re registered for GST and issuing tax invoices, your invoices must meet tax invoice requirements (such as showing your ABN, clearly stating that it’s a tax invoice, and the GST amounts for taxable sales). A practical way to keep cash flow healthy is to pair clean invoices with clear payment terms.

Consider standardising your invoicing rules in your contracts and customer onboarding. Setting firm due dates, invoicing milestones and accepted payment methods in your invoice payment terms can reduce disputes and speed up payments.

Late Fees And Interest

If you want to charge late fees or interest on overdue invoices, this needs to be permitted by your contracts and applied lawfully. There are legal constraints around fee amounts and how you communicate them. Before you add them, make sure your contract allows it and that you’ve provided fair notice. For a deeper dive, check what’s allowed when charging late fees on invoices in Australia.

Email Acceptances And Purchase Orders

In practice, many deals are done by email or with a quick purchase order. It’s important your pricing and GST statements are consistent across all those touchpoints. If your quote says “ex GST,” but your email implies a total amount that seems inclusive, that’s fertile ground for confusion. Where possible, ensure your written acceptance clearly references the quoted price basis and your terms.

Legal Risks: Misleading Pricing And Australian Consumer Law

Pricing and tax labels are more than admin - they’re legal representations. Under the ACL, you must avoid misleading or deceptive conduct. Pricing presentation is a common area where businesses accidentally mislead customers.

Misleading Or Deceptive Conduct

If a reasonable customer would think a price includes all taxes when it doesn’t, that can be misleading. Similarly, if you use tiny print or bury important price qualifiers, you risk breaching the ACL. Section 29 specifically prohibits false or misleading representations about price, so clear, prominent and accurate pricing statements are essential. It’s worth reading more on how section 29 works for businesses to make sure your approach aligns with the law: section 29 of the ACL.

Advertised Price Laws

When advertising to consumers, the prominent figure generally needs to be the total price inclusive of GST (if GST applies). If you show both ex GST and inc GST amounts, the inclusive amount must be at least as prominent as the exclusive amount. Headline prices should be genuine and attainable without adding unavoidable fees later. You can review key rules around advertised price laws to help shape your website and marketing content.

Online Sales And Checkout

In ecommerce, consistency matters from product listing through to checkout and invoice. If you display ex GST prices early but switch to inclusive prices at checkout without clarity, customers may feel misled. Clear, well-structured Online Shop Terms & Conditions and a transparent checkout flow are key safeguards. If you collect customer data during checkout, make sure your Privacy Policy is up to date and easy to find.

GST Registration, Thresholds And Practical Scenarios

You must register for GST if your business has a GST turnover of $75,000 or more (or if you provide ride-sourcing or taxi travel, among other categories). If you’re under the threshold, you can choose to register voluntarily. Whether you register affects whether you charge GST and how you present prices.

If You’re Registered For GST

• You charge 10% GST on taxable supplies.
• Your posted consumer prices should be inclusive of GST where applicable.
• Your tax invoices should clearly set out GST amounts and meet tax invoice rules.

If You’re Not Registered For GST

• You cannot charge GST.
• Your prices are effectively “no GST applicable”. Avoid language like “ex GST” if GST won’t be charged - it can confuse customers or imply a higher final price.
• Your invoices should not be called “tax invoices”.

Mixed Supplies And GST-Free Items

Some items are GST-free (e.g. certain health and education supplies). If you sell a mix of taxable and GST-free products or services, make sure your price displays, checkout and invoices handle each line correctly. Where you present “ex GST” figures, be explicit about which lines attract GST and which don’t, and show a clear total.

Recipient Created Tax Invoices (RCTIs)

In some industries, your customer may issue the invoice (an RCTI). In those cases, your contract should spell out how GST and totals will be calculated. The more clarity you include upfront, the fewer reconciliation headaches later.

Make Your Pricing Clear In Your Contracts And Policies

Clarity is a legal requirement and a customer experience essential. The best way to achieve both is to bake your GST approach into your standard documents and templates, so every quote, proposal, invoice and page on your website pulls through the same rules.

Helpful Documents To Put In Place

• Terms of Trade: Set out how prices are displayed, when GST applies, how you calculate totals, when invoices are due and what happens if they’re late.
• Online Shop Terms & Conditions: Explain pricing, taxes and checkout rules for ecommerce, plus returns, shipping and warranties.
• Invoice payment terms: Make due dates, milestones and accepted payment methods clear on quotes and invoices, so there’s no ambiguity.
• Late fee rules: If you intend to charge late fees, your contracts must allow it, and your invoices should reference that term consistently.
• Privacy Policy: Required if you collect personal information, including during checkout or quotes submitted online.
• Advertised price compliance: Use internal guidelines to make sure marketing materials use inclusive pricing where required and don’t hide unavoidable costs.
• ACL consistency: Keep pricing statements accurate and consistent across your website, proposals and invoices to reduce risk under the ACL.

Documenting your approach protects your business, reduces internal confusion and gives your team a playbook to follow as you scale.

Practical Tips To Avoid Price Disputes

Even with the right formulas and legal references, business is human. These simple habits can save you time and stress.

1) Choose One Default And Stick With It

Pick a default (e.g. always show “inc GST” on your website and customer proposals) and use it everywhere. If you need to show ex GST for B2B clients, keep the inclusive total prominent.

2) Label Clearly, Every Time

“$100 ex GST” and “$110 inc GST” are short and unambiguous. Avoid vague labels like “+ tax may apply.” Clear labels reduce back-and-forth and build trust.

3) Align Templates And Systems

Make sure your quote template, checkout, invoice system and accounting settings all use the same logic and wording. Consistency beats cleverness.

4) Put It In Writing

When a customer accepts a quote, confirm the total payable (inclusive of GST) in writing. That confirmation should tie back to your Terms of Trade so you have a clean paper trail.

5) Train Your Team

Anyone who sells, quotes or invoices on your behalf should understand the difference between GST inclusive and exclusive pricing, how to calculate both, and what your default rules are.

6) Review Your Website Copy And Ads

Scan your website, ads and brochures with fresh eyes. Are the prices clear? Do you show the total amount payable (inc GST) prominently for consumer offers? If not, adjust your content to align with advertised price laws and the ACL.

Key Takeaways

• GST inclusive means the price already contains GST; GST exclusive means you add 10% GST on top where GST applies.
• For consumer-facing pricing in Australia, show the total price inclusive of GST clearly and prominently to comply with the ACL.
• Use simple formulas: ex GST × 1.10 = inc GST; inc GST ÷ 1.10 = ex GST; inc GST ÷ 11 = GST component.
• Be consistent across quotes, invoices and your website - label prices clearly as “ex GST” or “inc GST” and show a clear total payable.
• Reduce risk under the ACL (including section 29) by avoiding misleading price displays and drip pricing tactics.
• Lock in your approach through solid documents like Terms of Trade and Online Shop Terms & Conditions, and set clear invoice payment terms.
• Train your team and review your marketing so your pricing is accurate, compliant and easy for customers to understand.

If you’d like a consultation on getting your pricing, quotes and invoices set up correctly for GST in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.