You can claim GST credits for most business purchases. However, there are some things that are GST-free or that you can’t claim for various reasons.
Here are a few things to watch out for:
➡️ If your suppliers aren’t registered for GST, you can’t claim GST credits (this applies even if your supplier gives you a tax invoice with an ABN and GST amount on it)
➡️ You can use the ABN Lookup online tool to check if your suppliers are registered for GST
➡️ Things such as basic foods, some medical goods or services and other items are GST-free
➡️ Check your tax invoices and only claim the amount of GST shown
➡️ If you use an item for both personal and business use, you can only claim the business portion
➡️ There is no GST on wages you pay to staff
As part of your record keeping, remember to keep your tax invoices.
If you need any assistance with your tax, please don’t hesitate to reach out to ARA!