This is a straightforward GST calculation. Australian GST is 10%, applied to the GST-exclusive (net) price. For a GST-inclusive total, the GST amount is found by dividing by 11.

GST included = $1,100 / 11 = $100
GST-exclusive price = $1,100 - $100 = $1,000

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

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# ACC-0001 - GST on a $1,100 tax invoice

## Answer

- **(a) GST amount included in the invoice: $100**
- **(b) GST-exclusive price: $1,000**

## Working

This is a benchmarking hypothetical, not tax advice. Figures are as at FY2025-26 and use the Australian standard GST rate of 10%.

Australian GST is levied at 10% **on the GST-exclusive (net) price**, so the GST-inclusive total is 110% (i.e. 11/10) of the net price:

```
GST-inclusive total = GST-exclusive price x 1.10
```

When you have the GST-**inclusive** amount and need to extract the GST component, the standard ATO method is to **divide the total by 11** (because the GST is 1/11 of a tax-inclusive amount, since 0.10 / 1.10 = 1/11):

- GST included = $1,100 / 11 = **$100**
- GST-exclusive price = $1,100 - $100 = **$1,000**
  (equivalently, $1,100 / 1.10 = $1,000)

## Check

- GST-exclusive price x 10% = $1,000 x 0.10 = $100 (matches the GST amount)
- GST-exclusive + GST = $1,000 + $100 = $1,100 (matches the invoice total)

## Approach

The invoice value of $1,100 is GST-inclusive. For a 10% GST regime, the inclusive total is 11/10 of the net price, so the embedded GST is exactly 1/11 of the inclusive total ($1,100 / 11 = $100) and the GST-exclusive price is the remainder ($1,000). Both figures were confirmed by recomputing the GST forward from the net price (10% of $1,000 = $100) and checking the components sum back to $1,100.