Selling goods or services to clients outside Australia often means GST-free treatment — but the rules differ meaningfully between exported goods and exported services.
Last updated: June 2026
Goods you export from Australia are generally GST-free (Australia’s equivalent of zero-rated), meaning you don’t charge GST on the sale but can still claim GST credits on related costs — provided the goods are actually exported within the required time limits (generally 60 days from the earlier of receiving payment or issuing an invoice) and you retain evidence of export.
Services are treated differently. Broadly, a supply of services to a recipient outside Australia is GST-free if the recipient is not in Australia when the service is performed, and either the service isn’t connected with real property in Australia, or (for certain services) it’s not directly connected with goods physically located in Australia. This test is genuinely more involved than the simpler "export = GST-free" rule for goods.
Consulting, freelance, and professional services provided to a genuinely overseas business or consumer are commonly GST-free under this rule, but the specific facts — where the work is performed, where the client is located, whether the service relates to Australian property — all matter to the analysis.
Yes. GST-free supplies (exports) still count as part of your GST turnover for the purpose of the A$75,000 registration threshold, even though you don’t actually charge GST on them — they’re taxable supplies for turnover purposes, just taxed at a 0% effective rate.
Often not, if the client is genuinely outside Australia when the service is performed and the other GST-free export conditions are met — but the specific facts of your service matter to this determination.
Yes, GST-free exports still count as part of your GST turnover for threshold purposes, even though no GST is actually charged on them.
Documentary evidence of export (shipping documents, customer location, contract terms) supporting that the goods or services genuinely qualify — keep this in case of an ATO review.
Yes, generally goods must be exported within 60 days of the earlier of receiving payment or issuing an invoice, to qualify for GST-free treatment.
Yes, unlike input-taxed supplies, GST-free supplies still allow you to claim GST credits on related business costs — this is what distinguishes GST-free from input-taxed treatment.
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