Here are common GST mistakes we see:

  • Government fees
    ASIC, business name registration, vehicle registration (remember CTP may have GST)
  • Food
    Fresh fruit, vegetables and milk for the office
  • Banking
    Bank fees are GST free; merchant/eftpos fees are subject to GST. Interest doesn’t attract GST either
  • Insurance
    No GST on the stamp duty and fire levy component; also insurers pay the GST directly to the ATO for successful claims that involve a payout
  • Small Businesses
    Remember some small suppliers or contractors may not be registered for GST
  • Entertainment
    Where a business has elected the 50/50 split method for FBT, only 50% of credits can be claimed. Remember – travel is not entertainment, and all credits can be claimed
  • Travel
    International airfares do not attract GST, as they are regarded as an export service
  • Private expenses (sole traders and partnerships)
    When apportioning private and business use expenses, only claim GST on the business proportion
  • Government grants and awards
    Most grants and awards are GST, but worth making sure