In Australia GST applies to Goods and Services at the rate of 10%.  

Since GST applies to Services it means that it also applies to Shipping.

No tax applies to any goods exported outside Australia.

Tax is always included in the price.

Exceptions exist so if you are unsure visit  www.ato.gov.au  for more information.

This is how you set it up in ShopFactory.

1. Open your shop in ShopFactory , click -> Central -> Tax 

2. Follow the steps in the diagram below

3. On the next screen make sure "Prices include tax" is ticked

"Allow customers with sales tax exemptions to remove sales taxes from charge" is unticked (there may be exceptions)

Text displayed with Product : "inclusive" or something descriptive

4. Click the Finish Button

5. Make sure "Apply tax on products to shipping and handling charges" is ticked. and Click Ok

6. That's it your GST is setup.   It will now apply 10% GST to all products & shipping for anyone in Australia and remove tax from the Product price for any other country.