Can I Claim the GST on That?
Welcome to the “Can I Claim the GST on That?” page! This is a resource for business owners (or their bookkeepers/BAS Agents) who prepare their own accounts and BAS. More specifically, it is a list of common business purchases and whether or not they are subject to GST. This list answers the question, “does this purchase include GST or not?”. It is to be used to assist in better accounts preparation and subsequent BAS preparation. We suggest that you bookmark this page for future reference.
We hope you find this resource helpful. Please share it with fellow business owners or even your BAS Agent or bookkeeper. If there is an item or scenario missing from this list or one you would like to see included, please add it to the comments below. It would be great to make this a “live” resource that is updated regularly and therefore made more useful over time. Over to you!
ITEM | CLAIM THE GST? | YES & NO | NOTES |
Apportioned expenses (home-based business) |  | Only claim GST on the business percentage your tax agent has worked out for you. For example, if your business percentage is 30%, then you can only claim 30% of the GST of the purchase. | |
ASIC filing fees |  | Fees associated with ASIC are not subject to GST | |
ASIC other fees | | Fees associated with ASIC are not subject to GST | |
ATO general interest | | GST free | |
Bad debts | | ||
Bank dishonoured cheque fee | | GST free | |
Bank fees | | GST free | |
Bank interest | | GST free | |
Bank merchant fees | | This includes American Express merchant fees | |
Business name registration | | As with any ASIC charges, this is not subject to GST | |
Capital purchases | | ||
Child care fees | | Not tax deductible, therefore GST not claimable | |
Client gifts | | ||
Commercial rent | | ||
Compression socks | Compression socks are only GST-free if they're specifically designed for people with an illness or disability, and not widely used by people without an illness or disability. GST applies to compression socks when they’re designed for, or widely used by, people in the general community to: prevent illness or disability, or prevent legs and feet from getting tired or swollen from prolonged standing. This will include products such as travel socks, general-purpose compression socks, sports or athletic compression socks and maternity socks. | ||
Council rates | | Generally no, but if your landlord is registered for GST, he may charge GST on these rates | |
Credit card repayments | | GST exempt | |
Credit card surcharge | | The surcharge is considered to be form part of the supply of goods and services. | |
Depreciation | | GST exempt | |
Digital subscriptions | Depends on the supplier. Here is a great list of digital suppliers and whether or not GST applies to their subscriptions. (thanks to Avers.com.au | ||
Digital Currency | If you use digital currency to pay for goods and services or accept it as payment in your GST-registered business, it’s just like using money and the normal GST rules apply. You must report your sales & purchases on your BAS. | ||
Director fees | | Directors' fees are compensation paid for services performed as a company director. They can take the form of salary, fees and dividends. | |
Dogs | No, if the dog is a pet; Yes if the dog is used in the running of business such as a guard dog or a working dog used to muster stock. | ||
Domain name renewal | | Yes generally, but not if the supplier is based overseas. | |
Donations | | No GST claimable and for it to be tax deductible, the organisation you donated to must have the status of Deductible Gift Recipient. | |
Driver's Licence | | Not tax deductible, therefore GST not claimable | |
Ebay fees | | GST free | |
Education general | | All recognised pre, primary, secondary and tertiary courses are GST free. | |
Educational/training courses for your business | | Generally yes if the tax invoice indicates that GST has been charged, however there are exceptions so always check the tax invoice first. | |
Electricity and/or gas | | Yes, to the extent of your business usage percentage. | |
Entertainment | If your business has elected to use the 50/50 split method for FBT, only claim 50% GST on all purchases | ||
Export of Goods for consumption and use outside of Australia | | Under section 38-190, a supply of a service is GST-free if the: recipient of the service is outside Australia, and | |
Eyewear | Reading glasses - no! Protective-wear like sunglasses or safety glasses, yes! | ||
Food & drinks | To work out if food or drink is taxable or GST-free, use this flow chart created by the ATO - very useful! https://bit.ly/3ZuXvcp | ||
Gift cards | | GST free | |
Going concern | | ||
Haircuts and makeup | | Not tax deductible, therefore GST not claimable | |
Health & medical services, aids & appliances | | Most medical-related supplies are GST free. However, to check if GST applies, see this ATO guide. | |
Insurance | The premium, broker fees and administrative fees include GST. Stamp duty is exempt. | ||
Insurance excess | No, if you are paying the excess directly to the insurer. Yes, if you are paying the excess to someone other than your insurer. Note, this party must not be acting as an agent for the insurer and you must receive a tax invoice. | ||
Internet | | Yes, to the extent of your business usage percentage. | |
Land tax | | GST exempt | |
Legal fees | | Yes, if the supplier is registered for GST. | |
Loan repayments | | Remember, you can only claim GST on the purchase of the item at the time of the purchase. You cannot claim GST in each loan repayment related to the original purchase! | |
Loans | | Loans are financial supplies, therefore GST does not apply. They are input taxed. | |
Meals at a restaurant/cafe | Yes if employees or associates but not claimable for clients. See the ATO entertainment table. | ||
Meals while you are travelling | | Yes, but not for clients. See the ATO entertainment table. | |
Mobile phone monthly charges | | Yes, to the extent of your business usage percentage. | |
Mobile phone prepaid recharge cost | | No, not subject to GST. Only the individual calls, SMS and data are subject to GST. | |
Mortgagees in possession | | ||
Motor Vehicle Registration | Not on the registration fee, but claimable on the TAC charge (Victoria). See here for how charges apply in other states. | ||
Motor Vehicle Purchase | | If you use a motor vehicle solely in carrying on your business and you're registered for GST, you’re generally entitled to claim a credit for the GST included in the price of the vehicle, provided you have a tax invoice. There are rules for luxury car purchases, leased vehicles and purchasing second-hand. | |
Motor Vehicle Sale | | You need to account for GST when you dispose of a motor vehicle if the disposal is a taxable sale. There are rules for luxury cars, trade-ins, disposal to an associate and disposal by a charity. | |
Payments to overseas suppliers | | Generally not but this depends on whether the supplier is required to be registered for GST e.g. Google.The policy underlying GST is that it is intended to be a tax on consumption in Australia and therefore, goods and services which are not consumed in Australia should not be subject to GST. | |
PayPal fees | | GST free | |
Postage | Yes, for postage within Australia but no, if the fee is for postage outside of Australia. | ||
Private health insurance | | GST exempt | |
Private purchases and/or loans | | GST exempt | |
Property - Commercial | Yes, if you sell shops, factories, or offices. No, if you are selling the property as part of a GST-free sale of a going concern. You may be able to treat the sale as a GST-free supply of going concern if the property is being leased at the time of sale. | ||
Purchase that is both for private & business use | Only claim GST on the business use portion. | ||
Reimburse Employees | | You may be entitled to claim GST input tax credits for payments you've made to reimburse employees for a taxable expense that's directly related to your business activities. | |
Residential rent & expenses | | ||
Secondhand goods sold by a charity | In general these will be GST free, however, if the goods have been altered in any way prior to sale, then GST applies. | ||
Stamp duty | | GST exempt | |
Storage fees | |
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Stripe fees | |
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Superannuation | | GST exempt | |
Suppliers not registered for GST | | Definitely not! But if you need to check if a supplier is registered for GST, go the ABN Lookup site. We recommend that this is done for all new suppliers in your business. | |
Tax payments | | GST exempt | |
Traffic fines | | Not tax deductible, therefore GST not claimable | |
Travel - flights, accommodation, taxi, parking | | Yes, to the extent that the travel is related to your business activities. | |
Uniforms | | ||
Vouchers | | GST is only claimed when the voucher is redeemed. The voucher purchase itself is GST free | |
Wages & payroll payments | | GST exempt | |
Waste disposal | | ||
Water rates | | GST free | |
Website hosting | | Yes generally, but not if the supplier is based overseas. | |
Work clothing | | ||
Workcover insurance | | ||
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2 thoughts on “Can I Claim the GST on That?”
As a limousine driver required to wear a suit. Is the costs of the suit and dry cleaning claimable ?
Hi Joseph, as a BAS Agent, I cannot give advice relating to questions about income tax deductions. You need to seek advice from the ATO or your Tax Agent.