GST in Australia vs New Zealand: 10% vs 15%, side by side

Same three letters, two quite different experiences. Goods and services tax exists on both sides of the Tasman, but the rate, the registration point, the paperwork and the rhythm of payments all differ. If you run a business in one country and you’re eyeing the other, or you already trade in both, this is the comparison Mr wishes every owner had pinned above the desk.

What are the headline differences?

	Australia	New Zealand
GST rate	10%	15%
Must register when	GST turnover reaches $75,000	Turnover reaches (or is expected to reach) $60,000 in 12 months
Who you report to	ATO	Inland Revenue (IRD)
The form	Business activity statement (BAS)	GST return
Usual small-business rhythm	Quarterly BAS	Two-monthly or six-monthly returns
Monthly reporting required	GST turnover of $20 million or more	Sales over $24 million

A few of those rows deserve more than a table cell.

Why does 15% vs 10% matter for cash flow?

Picture an illustrative $11,500 sale in New Zealand, GST inclusive. Of that, $1,500 belongs to IRD. Now picture an $11,000 sale in Australia, GST inclusive: $1,000 belongs to the ATO. Same-ish invoice, but the Kiwi business is holding half as much again in someone else’s money.

That money sits in your account until the GST return or BAS is due. In a good month it feels like spare cash. In a tight month it’s very easy to spend, which is how many owners end up with a GST bill they can’t cover. The higher rate in New Zealand makes the trap bigger, and six-monthly filing makes it longer, because six months of GST builds up before IRD asks for it.

Mr’s habit for both countries: the moment a customer pays, shift the GST portion into its own account. Do that every time and the bill becomes a non-event.

How do registration thresholds work in each country?

Australia: the ATO says you must register when your business has a GST turnover (gross income minus GST) of $75,000 or more. Non-profits register at $150,000, and anyone providing taxi or ride-sourcing travel must register regardless of turnover. Sales not connected with Australia are left out of the GST turnover calculation, which matters for exporters.

New Zealand: IRD’s test looks backwards and forwards: registration becomes compulsory when a taxable activity has turned over $60,000 or more across the past year, or is likely to reach that level over the coming year. Charging GST on your prices also means you need to be registered.

Registering below the threshold is allowed in both countries and can make sense if you want to claim GST back on start-up costs. Talk it through with your accountant.

How often do you file, and when is it due?

Australia keeps it fairly simple for small business. The quarterly BAS is due on 28 October (July to September), 28 February (October to December), 28 April (January to March) and 28 July (April to June). Businesses on monthly BAS (compulsory from $20 million of GST turnover) lodge and pay by the 21st of the next month.

New Zealand gives you a choice. IRD lists three frequencies:

• Monthly — open to anyone, compulsory if sales go over $24 million in any 12 months.
• Two-monthly — for anyone with sales under $24 million.
• Six-monthly — only for sales under $500,000.

Each return falls due on the 28th of the month following the period, with two exceptions: a period finishing 31 March is due on 7 May, and one finishing 30 November is due on 15 January. IRD is firm that GST returns get no filing extensions.

Running both? Our side-by-side tax due dates guide lines the two calendars up month by month.

Behind on a BAS or a GST return already? Mr’s people in each country consider tax debt case by case, and asking doesn’t touch your credit file. Pick your country and see what’s possible.

What about selling across the Tasman?

Good news: both systems are designed so exports don’t carry local GST. In Australia, exported goods are generally GST-free if the supplier exports them within 60 days of receiving payment or issuing an invoice, whichever comes first. In New Zealand, exported goods qualify for zero-rating, generally when they’re exported within 28 days of the time of supply. Services have their own rules in each country.

The flip side is that importing businesses and offshore sellers to consumers can pick up GST obligations in the destination country. We cover that in detail on GST on trans-Tasman sales.

How do lenders look at GST?

Lenders in both countries read your GST history as a window into the business:

• Lodged on time, paid on time: a quiet sign of good bookkeeping.
• Lodged but unpaid: a cash flow question. Lenders will ask why, and whether there’s an arrangement with the ATO or IRD.
• Not lodged at all: the biggest worry, because nobody (including you) knows the real number.

Your BAS or GST returns also help a lender check turnover. If the bank statements say one thing and the GST returns say another, expect questions. Unsecured and cash-flow lending, usually somewhere between $5,000 and $500,000, leans heavily on that consistency. Loans backed by property (between $20,000 and $5,000,000) can be more flexible, since the property carries more of the weight.

If you want the single-country deep dives, the Australian site covers borrowing to pay your BAS and the New Zealand site covers borrowing to pay a GST bill.

Can Mr point you in the right direction?

Ten per cent or fifteen, quarterly or six-monthly, a GST bill that lands at the wrong moment is fixable. When you’re ready, Mr’s people keep the first step light: there’s no credit check attached to an enquiry, nobody bundles your details off to a dozen lenders, and someone real in your country reads it. Put the honest GST figure and any arrangement on the form and you’ll get a sensible answer straight up. Pick Australia or New Zealand to get going.