average cost structure of australian clothing prices

GST 9%*
Profits of 2% to 6%

RETAIL GROSS
MARGIN 45%
“Cost of doing business”

WHOLESALE GROSS
MARGIN 10%
Tariffs and freight 3%

Materials 23%

COST OF
GOODS 36%

Overhead and profit 6%
LABOUR COST 4%

Note: *GST is 9% because the 10% GST is added to the pre-GST cost of an item. This means, as part of the total retail price of an item, GST usually makes up 9%.
Source: Deloitte Access Economics for Oxfam Australia, “A Living Wage in Australia’s Clothing Supply Chain”.