The country that introduced a 10% goods and services tax on 1 July 2000 was Australia.
Australia’s GST replaced several federal wholesale sales taxes and changed how consumption was taxed. The Howard government introduced the system after a major political debate, with the tax applying broadly to most goods and services at a standard rate of 10 percent. Basic food, some health services, education, and other categories received exemptions or special treatment.
The tax is collected by businesses but administered through the Australian Taxation Office. Registered businesses generally charge GST on taxable sales and claim credits for GST paid on eligible business purchases. The net revenue is distributed to the states and territories through Australia’s federal financial arrangements.
Australia’s GST is often compared with New Zealand’s GST, which began earlier and has a broader structure. The Australian measure should also not be confused with the United Kingdom’s VAT or India’s nationwide GST, which began in 2017.