Australia's Future Tax System

Final Report: Detailed Analysis

Chapter D: Taxing consumption

D2. The goods and services tax

Key points

The GST is Australia's principal consumption tax. To improve the operation of the GST there might be opportunities to make greater use of GST-free or reverse charging treatment for some business-to-business transactions. However, cases where the benefits outweigh the additional complexity are likely to be few, given the existing GST base and the GST's invoice-credit architecture.