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Claiming GST credits

Employers can claim a credit for any GST included in the price of any goods and services they buy for their business.

To claim GST credits, business owners must be registered for GST and must meet the following conditions:

  • intend to use the purchase solely or partly in carrying on their business and the purchase does not relate to making input-taxed supplies
  • the purchase price included GST
  • provide, or are liable to provide, payment for the item purchased
  • keep a tax invoice from the supplier (for purchases more than $82.50).

If your activity statement is delayed, it may have been to check that you have not claimed a personal expense as a business expense.

Business owners must remember to only claim a GST credit for goods and services used in the business; only claim the business portion of goods and services that are also used for personal purposes, and to keep track of the business portion using the logbook method.

Some typical expenses that are used for personal and business purposes include motor vehicles, domestic air travel or taxi travel, mobile phone or internet use and home-office furniture.


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