I wonder why Australians seem to have a problem with setting up their GST while it doesn't seem to be a problem for Europeans, who use the same "Value Added Tax" system
...maybe it's just the naming. GST = VAT in Europe, and since the VM2 default language is en-GB, the british abbreviation VAT is used instead of the australian GST.
Anyway, the 'normal' setup for price/tax calculations would be the way a merchant usually calculates his prices. A simple example:
Cost price (what you pay to your supplier)
+ Profit margin (you have to define that in the VM2 calulation rules and assign it to the product, when you create a new product)
+ Goods and Services Tax (+10% in your case)
= Final Price
However, if you for some reason prefer to enter other prices, you might have to use one of the price overrides. VM2 stores only whatever is shown in the cost price field into the database. All other prices are calculated.
Your 10% GST tax rule needs to be set as:
Type of Arithmetic Operation: VAT tax per product
Math Operation: +%
Currency: Austrailian dollar
Visible for Shopper: Yes
Visible for Vendor: Yes
After you've set up this tax, the GST needs to be assigned to the product from the 'Pricing rules overrides' Tax dropdown list in the 'Product Edit' view.
In VM2 configuration 'Pricing' tab, you should also select the required tax display options.