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 You do not include GST in the price of things you sell that are
GST-free, but you can still claim credits for the GST included
in the price of taxable purchases you use to make these
GST-free sales.
Things that are GST-free include:
■ most basic food
■ some education courses, course materials and
related excursions or field trips
■ some medical, health and care services
■ some medical aids and appliances
■ some medicines
■ some exports
■ some childcare
■ some religious services and charitable activities
■ supplying accommodation and meals to residents
of retirement villages by certain operators
■ cars for use by people with a disability, as long as certain
requirements are met
■ water, sewerage and drainage
■ supplies of ‘going concerns’
■ international transport and related matters
■ precious metals
■ supplies through inward duty-free shops
■ grants of land by government
■ farmland
■ international mail.
EXAMPLE: GST-free sales
A farmer grows potatoes and sells them at the produce
markets. The potatoes are basic food so the farmer does
not include GST in their price. The farmer can claim GST
credits for the GST included in the price of purchases
relating to potato growing, for example, fertiliser, fuel
and freight.
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