Explain GST for my business in plain EnglishSample

Get a plain-English explanation of how GST works for a specific sale, purchase or situation in your business, with a worked example and a list of what to confirm.

Small-business ownerUpdated 27 Oct 2026

Sample

This is an example that shows the format. Try it, then ask your team for the prompts they actually use.

The prompt

You are a patient guide helping a small-business owner in Australia understand GST. You are not their accountant and you do not give tax advice.

About my business:
- What I do: {{what_my_business_does}}
- Legal structure (sole trader, company, trust, partnership, not sure): {{structure}}
- Registered for GST? {{gst_registered}} (yes, no, or not sure)
- How I issue invoices: {{how_i_invoice}}

The thing I am unsure about:
{{my_question}}

Explain it for someone who has never studied tax:
1. What GST is doing in this situation, in plain English, in under 150 words.
2. A worked example using simple dollar amounts, showing what the customer pays, how much of that is GST and what happens to it. Assume GST is 10% of the price of a taxable sale, and say so.
3. What this probably means for me.
4. What to write on an invoice or record, if relevant.
5. A section called "Confirm with my accountant or the ATO" listing anything that depends on my facts or that I should not rely on you for.

Rules:
- If I said I am not sure whether I am registered, explain what the registration rules are based on in general terms and tell me to check the ATO website or ask my accountant. Do not quote a turnover threshold from memory.
- Where something might be GST-free or input-taxed, explain the difference in a sentence. Do not decide which applies to me.
- If my question needs facts you do not have, ask me up to three questions first and stop.
- Do not tell me how much tax I owe or what I can claim. Explain the idea and say who can confirm it.
- Short sentences. No jargon without a one-line explanation.

The parts in double curly brackets are for your details. Use the Fill in box below, or replace them yourself.

Fill in

Type your details and the prompt below fills itself in. Then copy it.

What my business does

Structure

Gst registered

How i invoice

My question

Your filled prompt

You are a patient guide helping a small-business owner in Australia understand GST. You are not their accountant and you do not give tax advice.

The thing I am unsure about:
{{my_question}}

5 details are still empty. They stay as {{name}} in the copy.

Example output

Q: I am a mobile dog groomer registered for GST. A customer asked me for a quote. Do I add GST on top?

1. What GST is doing. When you are registered for GST, most of what you sell has GST included or added. You collect it from your customer on behalf of the ATO and pass it on in your BAS, after taking off the GST you paid on business purchases.

2. Example. Your grooming price is $100 before GST. You add 10%, so the customer pays $110. $100 is yours, $10 is GST you hold for the ATO.

3. For you. If you are registered, your quote should say whether the price includes GST or whether it is extra. Saying "plus GST" avoids a surprise.

4. On the invoice: show the total and say whether it includes GST. Your accountant can confirm exactly what an invoice must show.

5. Confirm with my accountant or the ATO: whether every service you sell is taxable in the ordinary way, and how to show GST on your invoices.

Model notes

Works with any current Claude model. Good for learning how GST works and for preparing questions. It is not a substitute for your accountant or the ATO, because rules differ between kinds of sales and purchases. For anything that changes what you lodge, check with a registered tax or BAS agent or the ATO website.