Inclusive or exclusive: the decision everything else follows from
Australian consumers expect to see the price they pay, which means entering prices inclusive of tax. That single choice changes how WooCommerce stores every price, how it rounds, and what your reports mean. Switching it later on a store with existing products is not a toggle: it silently reinterprets every price already in the catalogue.
Which WooCommerce tax settings matter for GST?
Six settings decide whether GST is right, and most of them live under WooCommerce > Settings > Tax. Prices entered with tax: yes, for a GST-inclusive catalogue. Calculate tax based on: normally the customer shipping address, not the shop base address. Shipping tax class: usually based on cart items. Rounding: rounding at subtotal level rather than per line, chosen to match how your accounting software calculates. Display prices in the shop and in the cart: including tax. Then the standard rates table itself: country AU, a 10% rate named GST, priority 1, compound off and shipping ticked. Taxes also have to be enabled under the general settings, which is surprisingly often the thing that is off.
A 10% rate is not the same as a GST configuration
Adding a 10% standard rate is the part everyone gets right. What breaks is everything around it: whether the rate applies to shipping, whether it compounds, which customer address the calculation is based on, and what happens for a customer outside Australia who should not be charged GST at all.
GST-free products and why they need their own tax class
Basic food, many health and medical products and exports are GST-free. In WooCommerce they belong in their own tax class with a 0% rate scoped to Australia, applied per product, rather than left in the standard class or switched to a tax status of none. A dedicated class keeps GST-free sales identifiable in reports and in the export to your accounting software, which is what your accountant needs when total sales and GST-free sales are reported separately. Which of your products are actually GST-free is a question for your accountant; configuring the store to match their answer is ours.
How does WooCommerce charge GST on shipping?
WooCommerce taxes the shipping charge using the shipping tax class setting, and with it set to follow cart items it does not split shipping across a mixed cart. If any item in the cart is in the standard class, the whole shipping charge is taxed at the standard rate; a cart containing only GST-free goods takes the GST-free treatment. For most stores that is acceptable. If yours sells a lot of mixed carts and your accountant wants shipping apportioned instead, that needs custom handling, and it is worth agreeing the rule with them before anything is built.
Common GST mistakes we find in WooCommerce stores
The same handful turn up again and again. A GST rate row with the country left blank, so it applies to every customer in the world. The 10% rate entered under the reduced-rate class instead of the standard one, so most products carry no tax at all. Prices typed ex-GST while the store is set to treat them as inclusive, so customers are charged the ex-GST figure and the business quietly absorbs the GST on every sale. Tax calculated on the shop base address, so overseas orders are charged GST. Rounding per line in WooCommerce and per invoice in the accounting software, producing one-cent differences on hundreds of orders. And refunds entered as a single amount rather than against the order lines, which records money going back without reversing the GST in it.
Making the numbers reconcile at BAS time
The test of a GST setup is not the checkout, it is whether your quarterly figures match. We check the tax report against the order data, look for orders that recorded tax at a rate no longer configured, and make sure refunds and partial refunds reverse the GST correctly, which is where a surprising number of stores quietly drift.
Fixing a store that has been wrong for a while
If the configuration has been wrong for several quarters, changing it going forward is straightforward; the historical orders are the real question. We can produce a corrected report of what was actually collected versus what should have been, so your accountant has something to work from rather than a guess. Once the setup is right, a monthly website care plan keeps updates and backups looked after, so a plugin update does not quietly undo it.