General Mathematics
Preliminary
GST & VAT
Stage 6 - Year 11
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©G Dear 2009 – Not to be sold/Free to use
GST & VAT (1/9)
The GST is a 10% tax on the purchase price of most
items.
Goods and
VAT is similar to GST and is used
Services Tax in many countries, such as the UK
Value
Added Tax
The percentage used with VAT
varies from country to country
2
GST Free (2/8)
Health and Medical Care
• Services by medical practitioners and
pathologists;
• Services by allied health practitioners such
as physiotherapists, naturopaths, nurses and
optometrists;
• Hospital treatment;
• Disability services;
• Medical aids and appliances;
• Pharmaceuticals;
• Health insurance.
GST Free (3/8)
Educational Supplies & Childcare
•
•
•
•
•
School and university fees
Certain coarse materials
Student accommodation
Professional and trade courses
Approved childcare
GST Free (4/8)
Fresh Food and Beverages
• Food and ingredients for food for human
consumption
• Beverages for human consumption and
ingredients for such beverages
• Goods to be mixed with or added to food for
human consumption (including condiments,
spicings, seasonings, sweetening agents or
flavourings)
• Fats and oils marketed for culinary purposes
• Any combination of any of the above
GST Free (5/8)
Other GST-Free Supplies
•
•
•
•
•
Sale of a "going concern”
A grant of crown land
Certain sales of farm land
Water, sewerage and drainage;
Cars for disabled people
Calculations with GST (6/8)
To find the GST multiply by 10%.
Example: Calculate the amount
of GST on a car costing $32 000.
10
GST = 0.10
10% x $32 000 = $3 200
100
Example: Calculate the amount of
GST on a tin of jam costing $1.65.
10
GST = 0.10
10% x $1.65
100
= $0.17
7
Calculations with GST (7/8)
To find the Price + GST multiply by 110%.
Example: Calculate the price +
GST on a car costing $32 000.
110 x $32 000
Price + GST = 110%
1.10
= $35 200
100
Example: Calculate the price +
GST on a tin of jam costing $1.65.
110
Price + GST = 110%
1.10 x $1.65 = $1.82
100
8
Calculations with GST (8/8)
Given the Price+GST Divide by 110% to find the
non-GST price
Example: Calculate the pre-GST
price on a car costing $35 200.
110
1.10
Pre-GST = $35 200 ÷ 110% = $32 000
100
Example: Calculate the pre-GST
price on a tin of jam costing $1.82.
110
1.10 = $1.65
Pre-GST = $1.82 ÷ 110%
100
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