01/07/2026
On this day 26 years ago, Australia changed forever when the GST was introduced.On 1 July 2000, the Goods and Services Tax kicked in across the country, adding 10% to most goods and services and replacing the old wholesale sales tax system. It was one of the biggest tax changes Australia had ever seen, brought in under the Howard Government after years of debate, arguments, TV ads, confusion and everyone trying to work out what was suddenly going to cost more, and Johnny Howard also saying that he would not introduce a GST years before under his leadership.
It was however taken to election and Australia essentially voted yes to it.
The GST covered most everyday things Australians bought, from takeaway food, clothes, electronics, toys, CDs, video games, movie tickets, furniture, haircuts, repairs and most services. But not everything got hit with it. Basic fresh food, some medical and health services, education, childcare, exports and a few other essentials were GST-free. That is why a loaf of bread or a bag of apples could be GST-free, but a hot chook, packet of chips or takeaway burger usually is not.
The idea was that GST would replace a mess of older taxes that most people never really understood, including the old Wholesale Sales Tax, plus some state taxes like bed taxes, financial institutions duties and stamp duties on marketable securities. So while we all remember prices going up at the checkout a tiny bit, part of the sell at the time was that Australia was getting rid of a clunky old tax system and replacing it with one big broad 10% tax, with some products going down, and many staying at similar prices.
For kids, it probably just meant hearing adults complain at the supermarket checkout. For teenagers, it meant your Macca’s run, movie ticket, CD single, bus fare, takeaway chips or Big M suddenly felt a tiny bit more expensive.
The year 2000 already felt weird enough. We had just survived the Y2K panic, the Sydney Olympics were coming, everyone was slowly getting the internet, and then overnight Australia had a whole new tax system. Receipts became Tax Invoices.
It was also the era of businesses putting up signs trying to explain price changes, shop assistants having to deal with confused customers, and everyone learning that the price on the shelf now had to include GST.
Love it or hate it, the GST became one of those very Australian adult phrases that kids from the 2000s remember hearing all the time. Today it is just a normal part of life.
26 years later, it is still sitting at 10%.
