Setting Up Tax in Australia

I'm setting up a site that only sells within Australia, and the tax rate is a 10% GST tax.
1) What are the step-by-step procedure for setting up the default tax rate so that 10% is calculated for item sold?
2) Do I need to calculate 10% for every product that I create on the price I charge?

Thanks

Hi,

Thanks for the steps below. I just wanted a few clarifications:

1. Go in System->Taxation, click on "manage rates" and create a new rate at 10%.Go in System->Taxation, click on "manage rates" and create a new rate at 10%.
OK
Then, go back to System->Taxation and create a new tax rule and select your country, the tax rate, the tax category and save.
In Tax Category, there is only None & Default Tax category which was already setup by the system. Do I need to set one up i.e "GST" or use the Default Tax category?
In my case I used the Default Tax Category, is this correct?
What is the default tax category anyway?

Then, in your configuration make sure that the default tax zone is your country and then in each products, you need to select the default tax category. Then the tax should be applied automatically to products prices on your front end.
Great!

Thanks