The Australian Taxation Office has published brief guidance on claiming GST credits, including when credits cannot be claimed.
Tips for claiming GST credits
If your organisation is registered for goods and services tax (GST), you can claim GST credits for most purchases. Check your tax invoices and only claim the amount of GST shown.
However, there are some things that are GST-free or that you can't claim.
- If your suppliers aren't registered for GST, you can't claim GST credits. This applies even if they give you a tax invoice with an ABN and GST amount on it. Use the ABN Lookup online tool to check if your suppliers are registered for GST. It's also available in the ATO app.
- Things such as basic foods, some medical goods or services and other items are GST-free.
- If you use an item for both personal use and in your organisation, you can't claim the personal portion.
- There is no GST on wages you pay to staff.
- There are also some property transactions where you can't claim GST credits. For example, you can't claim GST credits when buying a property using the margin scheme or build-to-rent developments.
As part of your record keeping, remember to keep your tax invoices.