GST & Fuel Tax Credits for Farmers: The 2026 Primary Producer Guide

Key Takeaways

Consulting services provided to clients outside Australia are generally GST-free (known as an "Exported Service").
Your foreign client must be "outside Australia" and not have a permanent establishment (office) in Australia that benefits from the work.
Even if the service is GST-free, you can still claim back global GST (Input Tax Credits) on your business expenses used to produce that work.

In 2026, the consulting market is global. An Australian management consultant might have a client in Singapore, another in the UK, and another in the US. While this diversification is great for growth, it creates a unique bookkeeping challenge: When do you charge GST?

If you incorrectly charge GST to an overseas client, you're making your services 10% more expensive than they need to be. If you forget to charge GST to an Australian client, it's 10% that will come out of your own profit margin. Here is how the rules stand in 2026.

1. The "Exported Services" Rule

Under Australian law, if you provide a service to a client who is not in Australia at the time the service is performed, that service is GST-free.

The Condition: The "supply" of your expertise must be for use outside Australia. For example, if you are a management consultant performing a remote strategy audit for a London-based company, you do not charge GST.
Invoicing: Your invoice should clearly state that the supply is "GST-Free Exported Services."

💡 Note: If your client is a US-based company but they have an Australian subsidiary, and you are performing the work for that Australian branch, you must charge GST. The identity of the payer isn't enough; the *benefit* of the service must be exported.

2. Overseas Payments & Currency Fluctuations

When billing in USD, Euro, or GBP, your Xero must correctly handle the conversion. The ATO requires you to report your income in AUD based on the exchange rate on the date the invoice was issued (or when the payment was received, depending on your accounting method). Using an automated tool like Xero's Multi-Currency package is essential for consultants in 2026 to avoid manually calculating "Foreign Exchange Realized Gains/Losses."

3. Claiming Expenses While Exporting

This is the best part of being an exporter. Even if 100% of your revenue is GST-free (meaning you owe the ATO $0 in GST), you can still claim back 100% of the GST you paid on your Australian startup costs—like your office rent, your new iMac, and your professional indemnity insurance. This often results in a GST refund from the ATO every quarter.

4. The "Connection with Australia" Test

If you are physically traveling to the overseas client to perform the work, the rule is even simpler: the work is performed outside Australia and is therefore GST-free. However, if the client is overseas but they send their team to *your* office in Sydney for a workshop, that service is "performed in Australia" and GST may apply. This is a complex area of tax law and you should seek specialist advice if your delivery model is "mixed."

Billing Overseas Clients?

Our accountants help professional service firms set up multi-currency Xero systems and ensure their GST-free reporting is ATO-compliant. Expand your global consulting practice with confidence.

Talk to a Global Consultant Accountant