Your GST credits exceed the GST you collected, and you want that money back. You reclaim it from the Australian Taxation Office (ATO) by lodging a Business Activity Statement (BAS), the form that reports the tax you owe and the credits you claim.
This is not the Tourist Refund Scheme (TRS), which lets travelers reclaim GST on goods they carry out of Australia. This guide covers business GST refunds for both domestic and non-resident companies.
What Is a GST Refund in Australia?
A GST refund is the net amount the ATO pays you when your input tax credits exceed the GST you collected in a reporting period. Goods and Services Tax (GST) is a broad-based 10% tax on most goods, services, and items sold or consumed in Australia, according to the ATO’s guidance on how GST works. Registered businesses remit one-eleventh of each GST-inclusive sale price.
An input tax credit is the GST you paid on a business purchase. GST equals one-eleventh of a GST-inclusive price, so a $1,100 sale contains $100 of GST, per the ATO. GST is levied under the A New Tax System (Goods and Services Tax) Act 1999, current on the Federal Register of Legislation. When your credits outweigh the GST you collected, the ATO pays the difference after you lodge your BAS.
Who Is Eligible to Claim a GST Refund?
Any GST-registered business can claim input tax credits, and non-resident businesses qualify only under standard GST registration, not simplified. Two scenarios most often produce a net refund. Exporters build up credits because exports are GST-free, so they collect no GST while paying it on inputs. Businesses in a heavy setup or investment phase make large purchases before sales ramp up.
You must be registered to claim. A domestic business registers once it crosses the turnover threshold. A non-resident business registers under the standard scheme and holds an Australian Business Number (ABN).
What Are the GST Registration Requirements?
Registration is mandatory once your annual GST turnover reaches AUD 75,000, and you must register within 21 days of becoming aware you will cross it, per the ATO. You need an ABN before standard registration. Different thresholds apply to non-profits and ride-sourcing drivers, so check your category before assuming the AUD 75,000 rule applies.
| Business type | Registration trigger | Source |
|---|---|---|
| Standard for-profit business | AUD 75,000 annual GST turnover | ATO, registering for GST |
| Non-profit organisation | AUD 150,000 annual GST turnover | ATO, GST for not-for-profits |
| Taxi, limousine, ride-sourcing driver | Register regardless of turnover, before the first trip | ATO, ride-sourcing registrations |
| Below the threshold | Voluntary registration available | ATO, registering for GST |
A business that registers late may owe GST on sales made since the date registration was required, plus penalties and interest, according to the ATO.
Can Non-Resident Businesses Claim a GST Refund in Australia?
Yes, non-resident businesses can claim GST refunds, but only under standard GST registration with an ABN. Simplified GST registration is a pay-only system for B2C sales of imported services, digital products, and low-value goods of AUD 1,000 or less. It issues no ABN and allows no GST credit claims, according to the ATO’s simplified GST registration guidance.
| Feature | Standard GST registration | Simplified GST registration | Source |
|---|---|---|---|
| ABN issued | Yes | No | ATO, simplified GST registration |
| Can claim GST credits | Yes | No | ATO, simplified GST registration |
| Registrant status | Full GST registration | Limited registration entity | ATO, simplified GST registration |
| Best suited to | Non-residents reclaiming GST on Australian costs | Non-residents making B2C imported sales | ATO, simplified GST registration |
Non-residents register three ways: online through the ABN application (selecting GST-only registration), by paper form, or through a registered Australian tax or BAS agent. You supply proof of business registration in your home country and a letter from your local tax authority confirming your status. The ATO does not require your home country to offer reciprocal refund arrangements. Commenda’s guide to GST registration in Australia for foreign companies walks through the ABN route in detail.
What Expenses Are Eligible for a GST Refund?
A purchase qualifies when it is used wholly or partly for your business, includes GST in the price, and is backed by a valid tax invoice for amounts above AUD 82.50 (GST-inclusive). Below that amount, other records suffice. Common refundable categories include commercial rent, utilities, equipment, software, travel, and professional services.
Import-related costs also qualify. You can claim import GST, duties, and local freight when the goods are used in taxable business activities. For mixed business and private use, you claim only the business portion, and small businesses can simplify this with the annual private apportionment election. Confirm your supplier is registered before you claim, using ABN Lookup on the Australian Business Register, because you cannot claim GST that was never charged.
What Expenses Are Not Eligible for a GST Refund?
You cannot claim credits where no GST was charged, or where the supply is GST-free or input-taxed. The table below lists the common exclusions and the reason each one fails the test.
| Excluded purchase | Reason | Source |
|---|---|---|
| Price includes no GST | No GST paid to reclaim | ATO, claiming GST credits |
| GST-free supplies (basic food, some health, education, exports) | No GST charged on the sale | ATO, how GST works |
| Input-taxed supplies (residential rent, bank fees, loan interest) | Financial and residential supplies carry no GST | ATO, claiming GST credits |
| Purchases used to make input-taxed supplies | Inputs to an input-taxed business | ATO, claiming GST credits |
| Private-use portion of a purchase | Only the business portion is claimable | ATO, claiming GST credits |
| No valid tax invoice over AUD 82.50 | Documentation requirement not met | ATO, claiming GST credits |
| Non-deductible entertainment | Not a claimable business cost | ATO, claiming GST credits |
| Wages and salaries | Employment income carries no GST | ATO, claiming GST credits |
| Purchases from unregistered suppliers | Supplier charged no GST | ATO, claiming GST credits |
| Claims after the four-year limit | Entitlement has expired | ATO, time limits on GST credits |
How Do You Claim a GST Refund Step by Step?
You claim a GST refund by lodging your BAS with GST credits reported at label 1B. If your credits exceed the GST you owe at label 1A, the ATO pays the difference. Follow these steps to lodge a clean, refundable BAS.
- Confirm standard GST registration and hold a valid ABN.
- Set your accounting basis (cash or accrual) and reporting cycle.
- Collect and validate tax invoices, checking supplier ABN, GST amount, and description.
- Calculate GST collected against GST credits for the period.
- Lodge the BAS through ATO Online services, a registered tax or BAS agent, or Standard Business Reporting (SBR) enabled software.
- Receive the refund into your nominated account.
- Retain your records for five years.
When Should You Lodge Your BAS to Claim GST Credits?
Lodge by your BAS due date, and claim every credit within four years of the due date of the BAS for the period in which it first became claimable. The ATO has no discretion to extend this four-year limit, so a missed credit is gone. Your reporting frequency depends on turnover.
| Reporting cycle | Who it applies to | Source |
|---|---|---|
| Monthly | Mandatory above AUD 20 million turnover | ATO, business activity statements |
| Quarterly | Standard for most small and medium businesses | ATO, business activity statements |
| Annual | Option for voluntary registrants below the threshold | ATO, business activity statements |
When can you claim under cash vs accrual accounting?
Your accounting basis sets the timing. On a cash basis, you claim a credit once you make payment. On an accrual (non-cash) basis, you claim once an invoice is issued or any payment is made, whichever comes first, according to the ATO. Choosing the right basis affects which period a large credit lands in.
How Long Does a GST Refund Take from the ATO?
Electronically lodged BAS refunds are typically processed within about 12 business days, though the ATO may withhold a refund to verify your claims, per the ATO’s guidance on expecting a refund. For a BAS refund held for checking, the ATO must notify you within 30 days of lodgment, and if no notice is issued, the refund is released on day 31.
Watch one friction point as a foreign business. The ATO generally pays refunds only into a nominated bank account at an Australian financial institution branch. Set up an Australian account before your first refund is due.
What Records Do You Need to Keep for a GST Refund?
Keep your supporting records for five years from when the record was prepared or the transaction was completed, whichever is later, in physical or digital form, according to the ATO’s GST record-keeping rules. Store the following:
- Valid tax invoices for purchases over AUD 82.50 (GST-inclusive).
- Proof of payment that matches each invoice.
- Supplier GST registration details.
- Copies of every lodged BAS.
- Import and export documents where relevant.
Keep private-use apportionment calculations with your records, and adopt e-invoicing to capture required fields accurately. Commenda’s annual compliance guide for Australian companies covers what comes after your first refund.
How Commenda Helps With Australian GST Refunds
Commenda’s global indirect tax platform manages GST registration, tracks your BAS deadlines, prepares and lodges returns, and keeps audit-ready records across jurisdictions, for both Australian entities and non-resident sellers. Because BAS data flows straight from your accounting system, Commenda connects through 100+ ERP, API, and custom integrations so your figures reconcile without manual re-entry.
Book a demo to see how much recoverable GST is sitting in your Australian purchase ledger.
