Not all transactions—whether cash or invoice-based—require GST to be applied. Some goods and services fall under a category known as “exempt supplies.” These are not subject to GST, and therefore do not need to be included in your GST return.
Common GST-Exempt Items
Here are some of the most common examples of GST-exempt supplies:
- Donated goods or services sold by non-profit organisations
This includes items sold by charities, churches, or other recognised non-profits.
- Financial services
For example, services provided by lawyers, banks, or insurance providers are typically exempt from GST.
- Residential rent payments
If you’re paying rent for a private dwelling, GST does not apply. (Note: GST is still required for commercial property or business premises.)
- Residential accommodation under a head lease
Similar to standard rent, this does not attract GST unless used for business purposes.
- Wages and salaries
These are personal income payments and are not considered taxable supplies for GST purposes.
- Investments
Money or assets invested—whether in shares, term deposits, or other financial instruments—are not subject to GST.
Why This Matters
Understanding what’s exempt from GST helps you:
- Stay compliant with tax laws
- Avoid over-reporting or misreporting GST
- Keep your business records accurate
If you're unsure whether a transaction is GST-exempt, it's always best to double-check with a tutor or a qualified tax advisor.