Goods and Services Tax

(GST)
Calculating and adding it on: https://youtu.be/cy7VDmSIc6w
Working Backwards: https://youtu.be/j9V0htrX9iI

Questions: 1aef, 2, 4, 6, 7, 9
What is GST
• A tax by the federal government of 10% on top of the prices of most
goods and services in Australia.
• Must be included in the listed price of an item.
Adding GST to a price A computer has a cost price of $1200. What
will the price by including GST?

• Same as increasing by 10%

• Find 10% of the price,
• Add this amount to original price
Calculating the original cost
• An item with GST is equivalent to 110% of the original price.
• 110% can be written as a decimal as 1.1

• To find the original price, divide the total price including GST by 1.1
A plumber charges $286 to unclog a toilet.
How would the cost be without GST?
Calculating the GST
• 110% includes 100% price, plus 10% GST.
• 110% can also be thought of as 11 lots of 10% GST.

• Cost of GST can therefore be calculated by dividing the cost with GST
by 11.
A washing machine sells for $1980. How much
GST is included in this price?