Key Differences at a Glance
| Feature | 🇦🇺 Australia | 🇳🇿 New Zealand |
|---|---|---|
| GST Rate | 10% | 15% |
| Introduced | July 1, 2000 | October 1, 1986 |
| Registration Threshold | $75,000 AUD | $60,000 NZD |
| Non-Profit Threshold | $150,000 AUD | $60,000 NZD (same) |
| Basic Food | GST-Free (0%) | Taxable (15%) |
| Education | Mostly GST-Free | Taxable |
| Health Services | Mostly GST-Free | Taxable |
| Reporting Frequency | Monthly or Quarterly | Monthly, 2-monthly, or 6-monthly |
| Return Name | BAS (Business Activity Statement) | GST Return |
| Tax Authority | ATO | IRD (Inland Revenue) |
GST Rate Comparison
🇦🇺 Australia: 10%
Example:
- $100 + 10% GST = $110
- GST Amount: $10
🇳🇿 New Zealand: 15%
Example:
- $100 + 15% GST = $115
- GST Amount: $15
Major Difference: What's Taxed
Food and Groceries
🇦🇺 Australia: Most basic foods are GST-free (bread, milk, meat, fruit, vegetables, eggs)
🇳🇿 New Zealand: All food is taxable at 15% including basic groceries
Education & Health
🇦🇺 Australia
- Education courses: GST-Free
- Medical services: GST-Free
- Childcare: GST-Free
🇳🇿 New Zealand
- Education: Taxable (15%)
- Medical: Taxable (15%)
- Childcare: Taxable (15%)
Registration Thresholds
When you must register:
- 🇦🇺 Australia: $75,000 AUD turnover (or $150,000 for non-profits)
- 🇳🇿 New Zealand: $60,000 NZD turnover (same for all entities)
Special cases:
- 🇦🇺 Australian taxi/ride-sharing: Must register immediately
- 🇳🇿 NZ has no special immediate registration requirements
Reporting and Compliance
Australia (BAS)
- File Business Activity Statements (BAS)
- Frequency: Monthly or Quarterly
- Includes GST, PAYG, and other taxes
- Due 28 days after period end (or 21 days for monthly)
New Zealand (GST Return)
- File GST Returns with IRD
- Frequency based on turnover:
- Monthly: Over $24 million
- 2-monthly: $500k-$24 million (most common)
- 6-monthly: Under $500k
- Separate from income tax
- Due 28 days after period end
System Complexity
🇦🇺 Australia
More Complex
- Multiple categories (taxable, GST-free, input-taxed)
- Many exemptions and special rules
- Complex for retail/food businesses
- Requires detailed categorization
🇳🇿 New Zealand
Simpler
- Broad-based - applies to almost everything
- Minimal exemptions
- Easier compliance
- Less categorization needed
Cross-Border Considerations
If you do business in both countries:
- Register separately in each country
- Use separate GST calculations (10% vs 15%)
- File separate returns to ATO and IRD
- Exports between countries are usually GST-free/zero-rated
- Different invoicing requirements
⚠️ Common Mistake
Businesses operating in both countries sometimes forget to register separately or use the wrong GST rate. Always use 10% for Australian transactions and 15% for New Zealand transactions.
Which System is Better?
| Aspect | Winner | Why |
|---|---|---|
| Simplicity | 🇳🇿 NZ | Fewer exemptions, easier to understand |
| Lower Rate | 🇦🇺 Australia | 10% vs 15% |
| Cost of Living | 🇦🇺 Australia | Basic food is GST-free |
| Compliance Cost | 🇳🇿 NZ | Simpler means less time/cost |
| Revenue Efficiency | 🇳🇿 NZ | Broad base raises more revenue |
Calculate Australian GST (10%)
Use our Australia calculator for 10% GST calculations
🇦🇺 Australia CalculatorCalculate New Zealand GST (15%)
Use our NZ calculator for 15% GST calculations
🇳🇿 New Zealand Calculator