How to Work Out GST in Australia (And the Mistake Nearly Everyone Makes)
AustraliaAustralian GST is 10%. Adding it is easy — pulling it back out of a total is where people go wrong, and the error costs real money on every invoice.
The calculators give you the answer. These explain the maths behind it — including the mistakes that cost people money.
Australian GST is 10%. Adding it is easy — pulling it back out of a total is where people go wrong, and the error costs real money on every invoice.
Adding tax is one multiplication. Pulling it back out of a total is where the errors live — and the method is the same whatever your rate happens to be.
Stacked discounts multiply, they do not add. The combined saving is always smaller than the two numbers suggest — and retailers know exactly how good that looks.
A 50% markup is a 33% margin. Businesses that treat them as the same number price their products too low and cannot work out why the money never arrives.
These sound identical and are not. One finds the percentage, the other finds the new value — and mixing them up is the most common percentage error there is.
A rate moving from 2% to 3% rose by one percentage point — or by 50%, depending on which you mean. Reporting picks whichever sounds better.
Four tricks that cover almost every percentage you will ever need to do mentally — including the reversal trick that makes hard ones trivial.
You know the price after a discount and want the price before it. Subtracting the percentage back gives the wrong answer, and it is wrong in a predictable direction.
The maths takes five seconds. The awkward parts are uneven orders, tipping on tax, and rounding — which is where the table usually ends up short.
Divide the part by the total and multiply by 100. The whole difficulty is knowing which number is the part — get that backwards and the answer is confidently wrong.
Percentages are not symmetrical. Up 50% then down 50% leaves you 25% below where you started — and the same asymmetry quietly distorts every set of figures you read.