Even though we have had the Goods and Services Tax here in Australia since July 2000 there are some GST rules that are harder to remember than others – particularly if we aren’t entering these transactions on a regular basis. Included here are some of the more common errors.
- Claiming all of the GST of an expense that is part personal – you can only claim that portion of the expense relating to the business.
- Claiming GST credits for contractors or suppliers not registered for GST
- Claiming GST credits for residential rental property expenses
- Claiming GST on the total of business insurance policies – GST cannot be claimed on the stamp duty component of the premium. For more info on GST and stamp duty, click on the link to my previous article Entering Transactions with GST.
- Claiming GST credits for bank fees and charges.
- Not claiming GST credits for credit card merchant fees
- Claiming GST credits for wages and superannuation
- Claiming GST credits for fines
If in doubt about the way you are entering any of your GST transactions, it is a good idea to speak to a BAS agent, accountant or to refer to the ATO publications on GST, which can be viewed online or sent out to you via post.