GST Refresher For Your Business

GST is paid at each step in the supply chain, and registered businesses charge GST in the price of goods, services or anything else they supply. GST collected on the sale of goods and services made by registered businesses must be remitted to the ATO via the business’s Business Activity Statement. The end consumer merely pays the GST at time of purchase to the supplier, and the supplier is responsible for paying it back to the ATO. If an entity is registered for GST, it can claim input tax credits from the ATO for any GST included in the price paid for goods, services or anything else bought for the business.

GST issues to keep in mind

You may want to keep some of these GST issues in mind:

Second Hand Goods

Buying second-hand can often be cheaper. However, in most cases they are purchased from a non-GST registered seller. Unless the seller is registered for GST you will not be able to claim the GST on the purchase. If you are registered for GST, don’t forget to charge GST when you sell your business assets regardless of whether the purchaser is registered for GST or not.

Deposits

The purchase of a significant asset often requires a deposit to be paid. Suppose you report GST on a cash basis. In that case, you will not be entitled to claim a GST input tax credit on the deposit at the time of paying. If you haven’t claimed GST when paying the deposit, make sure to claim GST on the total purchase price, including the deposit, when the deposit is later applied towards the asset’s cost (which may occur in a later BAS reporting period).

Purchasing a car for more than the car limit

Your GST input tax credit will be limited if you purchase a car with a cost that exceeds the tax car cost limit for depreciation. The car cost depreciation limit is the maximum you can claim as depreciation deductions for income tax purposes ($69,674 in 2024-25). Where the cost of your car exceeds this value, your GST claim is limited to 1/11th of the car limit.

Small but not insignificant

Bank Fees

Ordinary monthly bank account charges won’t include GST, but merchant fees do, so check your accounting system is set up to capture the GST on those merchant fees.

Insurance Policies

Insurance policies often include a small stamp duty component, which does not attract GST. You may be overclaiming GST if your accounting software is set up to claim a full 10% GST (or 1/11th of the premium cost).

Registrations

In Victoria, the vehicle registration is broken up into 3 parts: Registration Fee, TAC Charge and Duty Insurance. Only the TAC Charge includes GST; the other 2 components are GST Free.

Remember, the best way to maximise your GST claims is by checking your tax invoices for GST paid (you have four years to claim the GST) and then keeping those and other GST records for five years.

< Older Post

Newer Post >

Making Electronic Signing Easier for You

By Cogger Gurry • August 29, 2025

We’re excited to share that we’ve upgraded our client signing experience—now powered by FuseSign! This intuitive, secure platform lets you sign documents in minutes (not days), straight from any device, and is simple to use. There’s no need to download apps or remember passwords - just click the link, review your documents, and sign. With industry-leading security and a smooth, hassle-free process, signing important documents has never been faster or easier. You can find out more about FuseSign Here

Understanding The 20% HECS-HELP Debt Reduction

By Cogger Gurry • August 29, 2025

As part of its re-election commitment, the Federal Government has passed legislation to reduce all outstanding HECS-HELP debts by 20%. The Bill passed the Senate on 31 July 2025 and will come into effect once it receives Royal Assent. The reduction will be applied retrospectively to student loan balances held as at 1 June 2025. While many borrowers have recently seen their loan balances increase due to the 3.2% annual indexation, the Government has confirmed that the 20% discount will be calculated based on the loan amount before indexation was applied. How the Reduction Will Work: Once the legislation is in effect, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to eligible student loan accounts. Indexation will also be recalculated using the reduced loan balance, delivering further relief for borrowers. This change builds on previous reforms that now link indexation to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), rather than CPI alone, an approach designed to ease the financial pressure on graduates. Lodging Your Tax Return: If you’re getting ready to lodge your tax return, you don’t need to delay. The ATO will automatically apply the discount in the coming months. If you’ve fully repaid your student loan since 1 June 2025, you may be eligible for a refund equivalent to the 20% discount (subject to any other outstanding tax liabilities). Other Changes to Student Loan Repayments: The legislation also introduces changes to repayment thresholds. From 1 July 2025, the minimum income threshold for compulsory student loan repayments will increase from $54,435 to $67,000, making repayments more equitable. If you have any questions about how these changes may affect you or your tax return, please get in touch with CoggerGurry today, we’re here to help. Tel: 03 5571 0111

Division 296 Tax Update

By Cogger Gurry • August 29, 2025

Parliament has resumed, and we are watching closely for the introduction of the Division 296 tax Bill to the lower house. While the Government is managing a number of priorities, the extra time provides us with the opportunity to continue planning with clients who may be affected and to ensure we are ready when the legislation is finalised. Although no update has been given on whether the 1 July 2025 start date will be deferred, we’ll keep you informed as soon as there is more clarity. In the meantime, rest assured that we are monitoring developments carefully and will provide guidance and advice as soon as the position becomes clearer.