Most travel and tourism activities within Australia, such as domestic air travel, accommodation and car hire, attract GST. However, activities related to international travel and tourism are generally GST-free:
- passenger transport to or from Australia or between destinations outside Australia
- domestic air travel where the passenger is a non-resident and the travel was purchased while the passenger was outside Australia
- some domestic travel within Australia connected with international transport
- transport insurance connected with the international transport of passengers
- purchasing a service that is used or enjoyed outside Australia.
Where a travel or tourism service is GST-free, any insurances, arrangement fees or commissions associated with it are also GST-free.
To and from Australia
International transport is GST-free if you sell it to passengers travelling to or from Australia (by air or sea) and:
- their last place of departure in Australia is to a destination outside Australia
- it is from a place outside Australia to the first place of arrival in Australia
- it is from a place outside Australia to the same or another place outside Australia.
Transport booked within Australia for travel outside Australia is GST-free. This covers activities such as coach tours, train transport, hire-cars and ferry passages.
Domestic travel - Australian residents
You can sell domestic air transport GST-free to Australian residents if it:
- is part of an itinerary or arrangement leading to international air transport
- formed part of, or was cross-referenced to, a ticket for international air transport when the arrangement was made.
Domestic sea transport is wholly GST-free for Australian residents if it is part of a journey from:
- Australia to a destination outside Australia, and the transport is provided by the same supplier who transports the passenger from Australia.
- a destination outside Australia to Australia, and the transport is provided by the same supplier who transports the passenger to Australia
If the transport is wholly GST-free, the insurance is also GST-free. This covers international passenger transport and wholly GST-free domestic transport.
If you are a travel agent, you may receive fees – such as travel agents' commissions – for arranging transport and land content. A travel agents' commission can be any type of payment for agency services.
If the sale is for GST-free travel, the commission is also GST-free. This applies to registered travel agents and other tourism enterprises, such as: