List of Australian Tax Codes

If you own a UK business which has an Australian branch or subsidiary you’ll need to get familiar with all the local legal and reporting requirements. This includes understanding GST codes and reporting GST collected correctly to the Australian government.

This guide to Australian tax codes explained for a UK audience covers the basics of GST as well as a list of Australian tax codes. We also want to remind you that you can always get local professional advice in Australia if you’re still unsure about your specific business obligations.

We’ll also touch on Wise Business which offers an easy to use international account with low fees and the mid-market exchange rate - ideal for UK businesses trading with Australia.

💡 Learn more about Wise Business

What do tax codes mean in Australia?

GST¹ is a tax similar to VAT in the UK, which is applied on sales of certain goods and services in Australia. When you hear people talk about tax codes in Australia there’s a good chance they’re describing the codes used to correctly report GST on sales.

GST sales, and other tax information in Australia must be reported using the BAS system (Business Activity Statements)².

Using incorrect tax codes here is a common reason for businesses trading in Australia to discover they’re paying too much or too little GST, or incorrectly accounting for other taxes³. That means that understanding tax codes in Australia is pretty important if you’re a UK business with an Australian branch or subsidiary.

How do Australia tax codes work?

The most likely place you’ll hear about Australian tax codes is in relation to GST. Australian registered businesses with an annual turnover of 75,000 AUD or more are obliged to register for GS, so you’ll need to collect and account for this, and then pass on the money to the government as part of your reporting duties.

GST is usually set at 10%, but there are some differences, which means that picking the right code when accounting is essential. If you’re using a cloud based accounting solution for your Australian business you’ll probably be provided with a list of Australian tax codes which is compatible with the BAS system, and you’ll code transactions against this when managing your accounts.

List of Australian tax codes

Different accounting solutions use their own codes which are compliant with the Australian government BAS requirements. To give an example, here’s a look at the key Australian tax codes used in Netsuite⁵:

Rate	Description	Rate	Tax Type
UNDEF-AU	Unknown code	0.0%	GST
ADJ-AU	GST adjustment	0.0%	GST
TS-AU	Taxable supply	10.0%	GST
ITS-AU	Input taxed supply	0.0%	GST
TFS-AU	Tax free supply	0.0%	GST
EXPS-AU	Export supply	0.0%	GST
CPF-AU	Capital purchase - not subject to GST	0.0%	GST
CPT-AU	Capital purchase - GST is charged	10.0%	GST
CPI-AU	Capital purchase - input taxed	0.0%	GST
NCF-AU	Capital purchase - items which are free of GST	0.0%	GST
NCT-AU	Non-capital purchase - items on which GST is paid	10.0%	GST
NCI-AU	Non-capital purchase - input taxed	0.0%	GST
-AU	Transactions which are not for the supply of goods or services	0.0%	GST
LCT-AU	Luxury car sales	25.0%	LCT
WET-AU	Equivalent to former Sale Tax charged on wholesale value of wine sales	29.0%	WET
ABNW	ABNW	-48.5%	ABN
PAYGW-AU	Amounts withheld from Pay As You Go for employees who fail to provide a Tax File Number (TFN)	-48.5%	PAYG

Manage international business with Wise

Wise Business can be a helpful solution for UK business with Australian branches, which need to manage money across pounds, Australian dollars and more.

Wise Business accounts come with GBP account information to take payments from UK customers - but also offer local account details for a selection of foreign currencies including Australian dollars, euros and US dollars. You’ll be able to hold and exchange 40+ currencies in your Wise Business account, which also comes with easy ways to send payments to 160+ countries, and the option to order linked debit and expense cards for yourself and your team.

Best of all, for businesses managing their money across currencies, Wise offers mid-market exchange rates and low transparent fees whenever you convert, send or spend. That can keep down your overall operating costs and mean you keep more of your profits, in the UK and in Australia.

Get started with Wise Business 🚀

If you trade in Australia you’ll need to learn about GST, how to account and pay, so you can stay on the right side of the law and fulfil all your legal obligations. As with all tax requirements - at home and abroad - GST can be a little complicated. That means it’s worth getting professional advice from a local tax accountant so you’ll know you’re doing everything needed. Use this guide to get you started, and check out Wise Business to make it easier to pay and get paid in AUD as well as many other global currencies.

Sources used in this article:

1. Australian government - GST
2. Australian government - BAS
3. Australian government - BAS tips
4. Netsuite tax codes for Australia

Sources last checked March 26, 2024