Private versus business use (partial GST credits)

If you purchase goods or services that you intend to use for both your business and privately, you will need to apportion your claim. You can only claim a GST credit for the portion that relates to your business use.

Let’s look at some examples.

Haruto is a florist and runs his own business in the city. He purchases a laptop for $1,200 which includes $109.90 for GST. Haruto has a separate computer set-up at home which he keeps for personal use and his kids use for their schoolwork. Haruto plans to use the new laptop solely for his business, which is 100% of the time. In this case, Haruto can claim the full GST credit of $109.90.

Aisha is a full-time university student and hosts a successful video series on social media platforms, Instagram and YouTube. She has voluntarily registered for GST.

Aisha has a laptop which needs upgrading, so she purchases a new laptop for $1,200 which includes $109.90 for GST. Aisha plans on using her new laptop for university assignments, emails, and her work as a social media influencer. Aisha estimates that 80% of the time she will use the laptop for personal/private tasks (including uni) and 20% of the time for her video series. In this instance Aisha can only claim 20% of the GST amount included in the price of the laptop, which is $21.98.

Goods and services tax (GST)

Steps Progress

Introduction to the Goods and services tax (GST)

4 mins

Registering for GST

4 mins

Protecting yourself and your business

7 mins

Collecting GST on sales

6 mins

Claiming GST on purchases (GST credits)

8 mins

Claiming GST on imports and exports

3 mins

Record keeping and GST

5 mins

Accounting for GST

4 mins

BAS lodgment and payment options

6 mins

Completing your BAS

5 mins

Managing errors and making adjustments

5 mins

Getting support when you need it

2 mins

Related courses

1 mins

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