Which expenses are GST-free?

When you’re running a business, it’s easy to assume every expense has GST built in — but that’s not always the case. Understanding which costs are GST-free makes your bookkeeping and BAS much clearer.

 Common GST-free expenses:

Basic food: fresh fruit, veggies, bread, milk, plain meat, eggs. (But meals from a café or processed foods usually include GST.)

Health: visits to doctors, dentists, physiotherapists, and some medicines on prescription.

Education: school fees, uni courses, TAFE, some professional training.

Exports: goods and services sold overseas (if certain rules are met).

Childcare & aged care: government-approved services.

 What’s not GST-free?

It’s important to separate GST-free from input taxed:

Input taxed expenses (like bank fees, loan interest, residential rent) also don’t include GST, but you can’t claim GST credits on them.

With GST-free expenses, you can still claim GST credits on related costs you paid to supply them (e.g. if you sell GST-free food, you can still claim GST credits on your packaging supplies).

 Tip for business owners:

Always check your receipts and tax invoices. If it says “Total GST = $0.00”, it may be GST-free or input taxed. The difference matters when reporting.

Getting this right helps avoid ATO mistakes and keeps your books clean.

 At Harbourlight Ledgers, we guide businesses through GST with accuracy and clarity — so you can focus on running your business