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.