GST is calculated as 1/11 of the GST-inclusive price.

(a) GST = $1,100 / 11 = $100
(b) GST-exclusive = $1,100 - $100 = $1,000

# ACC-0001 response

## Answer

For an Australian tax invoice of $1,100 that includes GST at the standard rate of 10%:

- **(a) GST amount included in the invoice: $100.00**
- **(b) GST-exclusive price: $1,000.00**

## Working

The standard Australian GST rate is 10%, applied to the GST-exclusive price. When a price is GST-inclusive, the GST component is found by dividing the total by 11 (because the total represents 110% of the base price, and 10/110 = 1/11):

- GST = $1,100 × (1 / 11) = $1,100 / 11 = **$100.00**
- GST-exclusive price = $1,100 − $100 = **$1,000.00**

Check: $1,000 × 10% = $100 GST, and $1,000 + $100 = $1,100 total. Correct.

## Approach

This uses the standard ATO method for extracting GST from a GST-inclusive amount: divide the total by 11 to get the GST, then subtract to get the GST-exclusive (net) price. This is a benchmarking hypothetical, not tax advice.