GST Not Included: Pricing And Contract Drafting Rules In Australia

If you run a small business in Australia, you’ve probably seen (or used) pricing labels like “$100 + GST” or “GST not included”. It seems simple - but if you display prices the wrong way, or your contract terms are unclear, you can end up with avoidable disputes, delayed payments, and compliance headaches.

Pricing is one of the most “everyday” parts of doing business, which is exactly why it can be risky. Your customers, clients, and suppliers will often assume different things about GST - especially if you operate across both business-to-business (B2B) and business-to-consumer (B2C) channels.

This guide is general information only (not legal or tax advice). GST and price display rules can vary depending on your circumstances, so you should check current ATO guidance and get tailored accounting advice for your situation.

In this guide, we’ll walk you through what “GST not included” actually means in practice, how to display prices safely, and how to draft contracts that make GST treatment crystal clear (without overcomplicating things).

What Does “GST Not Included” Actually Mean?

When you say GST is not included in a price, you’re telling the buyer that the amount you’ve shown is exclusive of GST. In other words, GST may still be added on top of that price (usually an extra 10%) if the supply is taxable and you’re registered for GST.

For example:

• You quote: $1,000 (GST not included)
• GST (10%) = $100
• Total payable = $1,100

But in real life, the tricky parts usually aren’t the maths. The tricky parts are:

• whether you’re allowed to show GST-exclusive prices to that audience
• whether the other party understood GST would be added
• whether your contract documents match what your quote, invoice, or website said

That’s why it helps to treat “GST not included” as both a pricing issue and a contract issue.

Does “GST Not Included” Mean You Don’t Have To Charge GST?

No - not on its own.

Whether you must charge GST depends on your GST registration status and whether what you’re supplying is taxable. If you’re GST-registered and your supply is taxable, you generally need to charge GST (and report it correctly), even if the customer is another business.

“GST not included” is really about how you present the price, not whether GST applies.

When Can You Display Prices As “GST Not Included” In Australia?

This is where many small businesses get caught out: what’s “normal” in your industry isn’t always what’s “safe” for compliance.

As a general rule (and subject to exceptions), Australian Consumer Law and ACCC “component pricing” guidance mean:

• If you’re dealing with consumers, you generally need to display the total price including GST as the most prominent price.
• If you’re dealing with business customers, it’s more common to show GST-exclusive prices - but you still need to do it clearly.

From a practical perspective, if your website or advertising is publicly visible (not gated behind a “trade login”), you should assume it could be read like consumer advertising. That means a big “$X GST not included” label might not be enough if your overall display is confusing or the total price isn’t clear.

A Helpful Rule Of Thumb For Small Businesses

Ask yourself: Who is likely to see this price?

• If it’s a general public audience (social media ads, website homepage, posters, marketplace listings), displaying GST-inclusive pricing as the main price is usually the safer approach.
• If it’s a B2B quote, proposal, or tender document sent directly to another business, “GST not included” can be appropriate - provided your wording is unambiguous.

If you operate in both spaces (for example, selling to the public and also to trade customers), you’ll want consistent pricing processes and clear contract templates to avoid misunderstandings.

How To Display “GST Not Included” Prices Without Confusing Customers

Even if it’s legally permissible to show GST-exclusive pricing in your context, you still want to reduce the risk of:

• payment disputes (“we thought that was the total”)
• customer complaints
• cashflow delays
• refund arguments when the final amount differs

Best Practice Pricing Tips

Here are practical ways to display “gst not included” pricing more safely:

• State it right next to the price (not buried in a footer). For example: “$1,000 + GST”.
• Avoid vague wording like “GST may apply” if it actually will apply.
• Show the total where possible - especially for packages. For example: “$1,000 + GST (total $1,100)”.
• Keep it consistent across your quote, invoice, website and contract. Mixed messaging is where disputes start.
• Be careful with “from” pricing (e.g. “from $500”) if add-ons and GST significantly change the final total.

Common Small Business Mistakes We See

• Online store shows GST-inclusive checkout, but product pages say “GST not included”.
• Quote says “GST not included”, but the invoice later says “GST inclusive” (or doesn’t mention GST at all).
• Service agreement has no GST clause, so the parties argue about whether the quoted amount was fixed.
• Customer-facing ads are GST-exclusive, with GST only shown in tiny terms and conditions.

If you sell goods or services to customers, consistent and clear pricing also supports compliance with the Australian Consumer Law (ACL). If you’re refreshing your terms, it can help to have proper E-Commerce Terms And Conditions in place so GST and pricing mechanics line up with how you actually sell.

How To Draft Contracts And Quotes So “GST Not Included” Is Enforceable

Displaying “GST not included” on a quote or proposal is helpful - but it’s your contract terms that usually do the heavy lifting when a dispute arises.

If the other party later says “we didn’t agree to pay GST on top”, your ability to enforce the GST component often comes down to:

• what the written agreement says about GST
• how your price is defined (GST inclusive vs exclusive)
• whether the contract allows you to add GST to amounts payable
• whether the wording is consistent across all documents

For service-based businesses, it’s common to use a single umbrella document (or set of terms) that governs how you charge, when you invoice, and how tax is handled - for example, a Service Agreement.

Key GST Clauses Your Contract Should Cover

While each business is different, GST wording commonly deals with:

• Whether prices are GST-exclusive or GST-inclusive (and what happens if GST applies)
• Tax invoices (who issues them and when)
• Reimbursements and expenses (whether GST applies to reimbursed amounts)
• Adjustments (what happens if the GST treatment changes)

These clauses are particularly important for B2B engagements, longer projects, and contracts where the scope may change over time (because variations can affect price and GST).

Make Sure Your “Quote” And Your “Contract” Match

A very common scenario is:

• You send a quote that says “GST not included”
• The customer accepts by email
• You deliver the work
• You invoice with GST added
• The customer refuses to pay the GST component

To reduce this risk, it helps if your quote includes a clear acceptance mechanism and links back to your formal terms (or includes them). If you use quotations regularly, it’s worth tightening up your quotation process so the pricing and GST position is locked in from the start.

Special Scenarios: Deposits, Online Checkouts, And “GST Not Included” In Fine Print

Some pricing formats create more risk than others. Here are a few common areas where GST wording needs extra care.

Deposits And Part-Payments

If you take a deposit (for example, a 50% upfront payment), make sure you’re clear whether the deposit amount is:

• GST-inclusive; or
• GST-exclusive (and GST will be added); and
• refundable or non-refundable, and on what terms

If you describe a deposit as “non-refundable”, you need to ensure your customer terms are compliant and transparent. In many cases, it’s safer to spell out when you’ll keep the deposit (for example, where you’ve already incurred costs). Your contract wording matters here, and if you use deposits often, it may be worth reviewing your approach to non-refundable deposits.

Online Shops And Automated Pricing Displays

If you sell online, your checkout flow needs to be consistent. Problems often pop up when:

• your product pages show GST-exclusive pricing
• your cart adds GST at checkout (or doesn’t)
• shipping is added later
• discounts apply inconsistently

This is where properly drafted customer-facing website terms help, including a clear pricing clause. Depending on your setup, you might also need Shipping Policy wording that matches how total pricing is calculated and shown.

“GST Not Included” Hidden In Terms And Conditions

From a risk-management perspective, it’s rarely a good idea to rely on tiny footer text or fine print alone.

If a customer can reasonably miss the “GST not included” wording, you increase the chance of a dispute - even if you believe you’ve technically disclosed it. Clear, prominent disclosure up front is usually the more commercial (and safer) approach.

Practical Steps To Reduce GST Pricing Disputes In Your Business

If you want to use “gst not included” pricing confidently, the goal is to build a simple system so you’re not reinventing your approach for every sale.

1. Decide Your Default Pricing Position

Choose one default for each channel:

• Consumer-facing marketing: typically GST-inclusive as the headline price
• B2B quotes and proposals: either GST-exclusive (clearly marked) or GST-inclusive, but be consistent

2. Use Consistent Wording Everywhere

Pick one clear phrase and stick with it, such as:

• “$X + GST” (often the clearest)
• “GST not included” (fine, but ensure it’s close to the price)
• “GST inclusive” (if you’re including GST in the displayed price)

Then apply it to your:

• website
• proposals/quotes
• invoices
• contracts
• marketing materials

3. Put The GST Clause In Your Customer Contract (Not Just Your Invoice)

An invoice is important, but it’s usually not the best place to introduce a new pricing rule. If the deal is agreed before the invoice is issued, you want your GST terms to be part of the agreement from the start.

If you sell products, you might embed this in customer terms. If you provide services, you might include it in your service agreement. Either way, aligning your documents can also reduce broader payment and scope disputes.

4. Check Your Consumer Law And Advertising Risk

When you advertise, you want customers to understand the total price they’ll pay. If you run promotions, bundles, or “limited time” offers, make sure GST treatment doesn’t make the offer misleading.

This is one area where small businesses sometimes don’t realise that pricing presentation can raise Australian Consumer Law issues, even if the GST calculation itself is correct. For specific guidance, it’s worth checking ACCC resources on component pricing and (where relevant) getting advice for your business.

5. Use The Right Legal Documents As You Grow

Your GST pricing approach often evolves as your business grows - for example, when you move from one-off jobs to recurring retainers, from local clients to national clients, or from invoices on completion to milestone billing.

As that happens, you may also need to update the agreements you rely on, such as:

• Terms Of Trade (particularly useful if you sell B2B on account)
• customer-facing terms for online sales
• contracts with suppliers and contractors

If your internal operations change (for example, you start hiring staff to manage invoicing or customer service), it can also be worth tightening your internal policies and agreements so your team applies pricing consistently, including GST treatment.

Key Takeaways

• “GST not included” generally means your displayed price is GST-exclusive, and GST may be added on top if the supply is taxable and you’re GST-registered.
• For consumer-facing pricing, it’s generally safer to display the total price including GST as the main headline price, rather than relying on fine print (subject to limited exceptions).
• For B2B quotes and tenders, GST-exclusive pricing can be appropriate - but you need clear, consistent wording close to the price (for example “$X + GST”).
• The best way to prevent disputes is to align your price displays, quotes, invoices and contract terms so the GST position is consistent from start to finish.
• Strong contracts (with a clear GST clause) can save you time and money if a client later argues that GST wasn’t agreed.

If you’d like help reviewing your pricing terms or putting the right contracts in place for your business, reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.