Claiming GST credits: A simple guide from the ATO

Tips to keep GST credits simple this end of financial year

GST credits can seem confusing, but a few simple tips can help you get it right.

The best way to ensure you don’t miss out on any credits you can claim is to lodge your activity statements on time. You have up to four years from the due date of an activity statement in which the GST credits and fuel tax credits could first be claimed, to claim them – otherwise your entitlement to claim those credits is lost.

When you submit your BAS this quarter remember that:

  • you can’t claim the full amount of GST credits for a purchase that you use partly or wholly for private purposes – you can only claim the business portion of the purchase
  • some items are GST-free and a GST credit can’t be claimed (such as fresh food and some medicines)
  • if you account for GST on a cash basis and you’ve only partly paid for the purchase, you can only claim a GST credit on the paid portion
  • if you purchase a car and the price is more than the car limit, then the maximum GST credit you can claim is 1/11th of that limit. The car limit for 2017-18 and 2018-19 is $57,581, making the maximum GST credit you can claim $5,234.

If you lodge your activity statement but forget to claim a GST or fuel tax credit, you can still claim it provided that:

  • it is included in an activity statement lodged or an assessment within the four year time limit, and
  • you have the required supporting documentation.

Remember, registered tax agents and BAS agents can help you with your tax.

Find out more:

Australian Taxation Office (ATO)

The Australian Taxation Office (ATO) is the principal revenue collection agency of the Australian Government.

Our role is to effectively manage and shape the tax and superannuation systems that support and fund services for Australians.