Difference between FRE & NT Tax codes?

This is a very good question and people often get them confused as they are both equivalent to 0% tax.

The tax code "FRE" means the item or service is GST Free whereas the tax code "N-T" means that it is Not Reportable (still a 0% rate).

In Australia, most goods and services attract the GST but in some cases you will notice that some products and services are not subject to GST and are classified as GST FREE. Things such as most foods, healthcare services and water for example are GST Free items and you would use this tax code alongside these.

In some instances, items or services will not attract GST at all and this is where a NT code will or may be used. Things such as general cash transfers between bank accounts and depreciation should be allocated the tax code of NT.

The difference between the two is that the FRE code is still required to be reportable on your BAS and you will see a section specifically for it, whereas the NT code is not required on the BAS however is still relates to a transaction that moves between your bank accounts etc.