tax-law australia
Is it legal to charge GST2 of 2.5% in Australia?
<p>I recently bought a meal at a restaurant and when I looked at the receipt later I noticed that it shows a GST2 charge of 2.5%. As far as I know there has only been one GST rate in Australia since it was introduced: 10%. Some items, like basic food, are GST-free, so effectively they have a GST of 0%. I've never heard of GST being charged at any other rate in Australia. Is this legal?</p>

<p><a href="https://i.stack.imgur.com/gpV03.png" rel="nofollow noreferrer"><img src="https://i.stack.imgur.com/gpV03.png" alt="Receipt showing GST2 of 2.5%"></a></p>

<p>You are correct in that the GST is 10%. It never has been (and likely never will be!) 2.5%. You're also correct that some items (generally considered as 'essentials') are GST free. For example, the ATO includes 'most basic food' on its <a href="https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/gst-free-sales/" rel="nofollow">list of GST-free items</a>. However, these GST-free items are completely GST free, and restaurant meals certainly don't class as basic food.</p>

<p>Perhaps interestingly, the wholesale sales tax when it was first introduced in 1930 was set at 2.5%, but it wasn't at that rate for long (see <a href="http://archive.treasury.gov.au/documents/1156/HTML/docshell.asp?URL=01_Brief_History.asp" rel="nofollow">A brief history of Australia's tax system</a>).</p>

<p>If I had to guess, I'd say this is probably a dodgy set up in this restaurant's point-of-sale system (there's also no such thing as 'GST2'). Hopefully their returns to the tax office are not as dodgy!</p>
