Common GST mistakes

INSURANCE 

Majority of insurance policies have a stamp duty component which is GST exempt – so not a full 10% of the expense will be GST.

MOTOR VEHICLE REGISTRATION 

Motor Vehicle Registration is GST free.  Only the Compulsory Third Party Insurance (CTP) part of the payment has a GST component HOWEVER as it is an insurance it also has a stamp duty component so again, not a full 10% of the CTP amount will be GST.

BANK AND MERCHANT FEES 

Bank fees and annual credit card fees are GST free. 

Merchant fees contain GST. 

STAFF AMENITIES

Staff amenities (coffee, tea, milk) - these are all GST free! 

HOWEVER, you need to check your receipts carefully for the GST split to ensure you enter it correctly and therefore claim the correct amount of GST.  To work out the GST inclusive amount (split of GST inclusive and GST free) you times the GST amount on the receipt/invoice by 11. 

LOAN REPAYMENTS

There is no GST on loan repayments.

When purchasing an asset under a loan you need to ensure the initial purchase and borrowing is set up correctly in your accounting system. The GST on the total purchase price of the asset is claimed at that point, rather than when payments are made towards the loan.