GST

GST-Free Items Australia: Complete List 2026

15 June 2026 · 9 min read

Quick Answer

GST-free items in Australia include most fresh food, basic health services, most education, exports, and some childcare and charity supplies. You do not add 10% GST to these sales, but you can still claim GST credits on your business inputs. Always check ATO.gov.au or your BAS agent if a category is unclear.

If you are registered for GST in Australia, every sale you make is either taxable (10% GST), GST-free (0% but still a reportable supply), or input-taxed (no GST charged, no credits claimed). Most sole traders and small business owners know the 10% rule but get tripped up on the middle category — GST-free.

Getting this wrong costs you. If you charge GST on a GST-free item, you have overcharged your client and need to refund the difference. If you forget to zero-rate a taxable item, you pocket GST you have not collected and end up short on your BAS. The ATO does not treat either mistake lightly once your turnover clears $75,000 and you are registered.

This guide covers every major GST-free category under the A New Tax System (Goods and Services Tax) Act 1999, with plain-English examples for each. It is written for sole traders, freelancers, tradies, and small business owners who handle their own invoicing or BAS. Where the rules are genuinely complex — like the food boundaries — it flags that clearly so you know when to call your accountant.

What GST-Free Actually Means (And Why It Differs from Input-Taxed)

GST-free and input-taxed are not the same thing. Both result in no GST being charged to the customer, but only GST-free supplies let you claim GST credits on the business costs that produce them. Input-taxed supplies — like residential rent or most financial services — block your ability to claim those upstream credits.

For a GST-free supply, your invoice shows $0 GST or simply lists the price without a GST component. On your BAS, you report it at label G1 (total sales) but not at 1A (GST on sales). You still report the sale. You still need a valid tax invoice structure if it is over $82.50. You just do not collect or remit GST on that line.

This matters in practice when you mix taxable and GST-free supplies — common for businesses like cafes (taxable hot food, GST-free cold food), allied health clinics (taxable massage, GST-free GP-equivalent services), or exporters. Your invoicing software needs to handle both codes cleanly or your BAS will be wrong from the start.

If your invoicing software does not let you code a line item as GST-free (distinct from No GST / input-taxed), fix that before your next BAS. A wrong code is a wrong BAS.

The three supply types side by side:

GST-free: 0% GST charged, but you CAN claim input tax credits on costs
Input-taxed: 0% GST charged, and you CANNOT claim input tax credits
Taxable: 10% GST charged, and you CAN claim input tax credits

GST-Free Food: The Rules That Confuse Everyone

Food is the single biggest source of GST classification errors for small businesses. The general rule under Division 38-2 of the GST Act is that food for human consumption is GST-free — but the exceptions are substantial. Hot food, food sold in restaurants or cafes for immediate consumption, confectionery, soft drinks, savoury snacks, and food marketed as a prepared meal are all taxable at 10%.

The practical line is roughly: unprocessed, cold, and not ready to eat right now equals GST-free. Fruit, vegetables, bread, milk, cheese, meat, fish, eggs, tea, coffee (the beans or powder, not the made cup), and flour are all GST-free. A bag of lollies, a bottle of soft drink, a hot pie, or a restaurant meal are all taxable.

For food businesses specifically — cafes, catering, food trucks, meal-prep services — the ATO has a detailed food list tool at ato.gov.au. Do not rely on category logic alone. A muesli bar can be GST-free or taxable depending on whether it is classified as a food or a confectionery item. When in doubt, search the ATO food list or get a written ruling before you set your menu pricing.

Selling both taxable and GST-free food? You need a point-of-sale or invoicing system that splits the two automatically. Manual BAS allocation on mixed food sales is where most errors happen.

Food GST quick reference:

GST-free: fresh fruit and vegetables, bread, meat, fish, eggs, milk, cheese, plain water, tea leaves, coffee beans
Taxable: hot food, restaurant meals, confectionery, soft drinks, flavoured milk, savoury snacks, sports drinks, ice cream
Edge cases: muesli bars, protein powders, meal replacement shakes — check the ATO food list individually

Health, Medical and Disability Services

Most health services provided by a recognised health professional are GST-free under Division 38-7. This covers services by medical practitioners (GPs, specialists), nurses, midwives, dietitians, occupational therapists, physiotherapists, psychologists, and optometrists — where the service is directly related to treating or preventing a condition.

Dentists are included for therapeutic work, but cosmetic dental procedures with no health basis are generally taxable. Chiropractic and osteopathic services are GST-free when provided by a registered practitioner for a health purpose. Remedial massage by a qualified therapist may be GST-free if it meets the health service definition, but relaxation massage is taxable. The line is whether the service is for a diagnosed health need.

Medical aids and appliances covered by Schedule 3 of the GST Act are also GST-free — this includes wheelchairs, hearing aids, prosthetics, and certain other devices. Pharmaceuticals on the PBS (Pharmaceutical Benefits Scheme) are GST-free. Over-the-counter medicines are generally taxable unless they appear on the relevant schedule. If you run any kind of health or wellness business, the health services provisions are worth reading in full at ato.gov.au/business/gst/in-detail/your-industry/health.

Allied health practitioners billing insurance funds: double-check your GST classification. Billing the wrong rate to a health fund can trigger an audit-level discrepancy.

Health services GST status:

GST-free: GP consultations, specialist visits, physiotherapy, psychology, optometry, registered nursing
GST-free: PBS medications, hearing aids, wheelchairs, prosthetics
Taxable: cosmetic surgery, non-therapeutic massage, most gym and personal training services
Check: chiropractic, naturopathy, acupuncture — depends on registration and service type

Education, Childcare and Religious Services

Education courses provided by an approved school, TAFE, university, or registered training organisation (RTO) are GST-free under Division 38-85. This covers tuition fees, course materials supplied as part of a GST-free course, and student accommodation that is integral to the course. It does not cover purely commercial training courses, professional development workshops run by private companies, or coaching services — those are taxable.

Early childhood education and care provided by an approved childcare centre is GST-free under Division 38-140. This includes long day care, family day care, and out-of-school-hours care for children up to 13 years. Private tutoring, babysitting, and nanny services are taxable.

Religious services and goods used in religious practice — such as entry to a religious ceremony or goods sold for use in worship — are GST-free under Division 38-220. Charitable activities by registered charities can also attract GST-free or income-tax-exempt status, but the rules for charities are detailed and specific to the ACNC registration type. If you run or work for a charity, get specialist advice rather than assuming GST-free status applies broadly.

Education and care GST status:

GST-free: TAFE and university tuition, approved RTO courses, school fees
GST-free: approved long day care, family day care, OSHC
Taxable: private tutoring, personal coaching, commercial short courses, nanny services

Exports, International Travel and Cross-Border Supplies

Goods exported from Australia are GST-free under Division 38-185, provided they leave Australian territory within 60 days of payment or invoice (whichever is earlier). This is why Australian exporters can still claim input tax credits on their production costs — they make a GST-free supply, not an input-taxed one. The export evidence rule is strict: you need to hold shipping documentation proving the goods left Australia within the time limit.

International air and sea travel departing Australia is GST-free. Domestic travel within Australia is taxable at 10%. If you operate a travel business or book travel for clients, the split between international and domestic segments matters on every invoice.

For digital goods and services exported to overseas customers — software, consulting, design work — the supply is generally GST-free if the recipient is not in Australia and does not acquire the service for use in an Australian enterprise. The rules for cross-border digital services tightened significantly in 2017. If you sell software subscriptions or digital products internationally, confirm your GST-free classification with the ATO's cross-border guidance rather than assuming export = GST-free in all cases.

Exporting goods? Keep your shipping documentation on file for at least five years. If you cannot prove the goods left Australia within 60 days, the ATO can reclassify the sale as taxable and you will owe the 10% you did not collect.

Exports and travel GST status:

GST-free: goods physically exported within 60 days, international flights and cruises departing Australia
Taxable: domestic freight, domestic airfares, goods sold to overseas buyers but never shipped
Check: digital exports to overseas customers — depends on where the customer is located and how they use the service

Other GST-Free Categories Sole Traders Often Miss

There are several smaller GST-free categories that catch sole traders and small businesses off guard. The sale of a going concern — that is, selling your entire business as an operating entity to a buyer — is GST-free under section 38-325, provided both parties are GST-registered and the agreement states in writing that it is a going concern. Miss the written agreement requirement and the ATO treats it as a taxable sale. On a $500,000 business sale, that is a $50,000 GST bill.

Precious metals — specifically gold, silver, and platinum in investment form (like bullion bars or coins sold by weight) — are GST-free on the first sale in the supply chain under Division 38-385. Subsequent sales are generally taxable. If you deal in precious metals, the first-supply rule is critical to get right.

The supply of water, sewerage, and drainage by a government entity is GST-free. Certain farm inputs — like some fertilisers, seeds, and livestock — are GST-free. And the provision of certain government services — such as issuing a driver's licence or registering a vehicle — is outside the GST system entirely, meaning GST does not apply at all (not even as a GST-free supply). The practical takeaway: if your business touches any of these categories, do not assume the default 10% applies.

Less obvious GST-free supplies:

Sale of a going concern (written agreement required, both parties GST-registered)
First sale of investment-grade precious metals (gold, silver, platinum bullion)
Water and sewerage supplied by government entities
Eligible farm inputs — seeds, fertilisers, livestock (check the specific ATO schedule)
Government regulatory fees and charges — treated as outside the GST system entirely

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Frequently asked questions

Do I still need to issue a tax invoice for GST-free sales?

Yes — if the sale is over $82.50 (including any applicable GST, which in this case is $0), you must issue a tax invoice on request. The invoice should clearly show that the GST amount is nil or that the supply is GST-free. Your ABN must still appear on the invoice.

Can I claim GST credits on costs related to making GST-free sales?

Yes. This is the key difference between GST-free and input-taxed. For GST-free sales, you can fully claim input tax credits on the business costs that relate to making those sales. For input-taxed supplies like residential rent, you generally cannot.

If most of my sales are GST-free, do I still need to register for GST?

You must register for GST once your turnover reaches $75,000 regardless of whether your sales are taxable or GST-free. Even if you never charge a dollar of GST to customers, being registered lets you claim credits on your business costs — which is usually worth doing.

Is the sale of fresh food always GST-free?

No — the food rules have significant exceptions. Hot food, confectionery, soft drinks, savoury snacks, and food sold for immediate consumption in a restaurant or cafe are all taxable at 10%. Use the ATO's food classification tool at ato.gov.au to check individual items if you are unsure.

What happens if I accidentally charge GST on a GST-free item?

You have collected GST you were not entitled to, which means you must either refund it to the customer or remit it to the ATO. The ATO can also apply penalties for sustained incorrect classification. Issue a corrected invoice as soon as you identify the error and adjust your next BAS.