Sam Greco & Co News, Oct 2012

COMMON GST MISTAKES

Thursday 25th October, 2012 (6:02 am)

COMMON GST MISTAKES

  • GST claimed on loan repayments, including Chattel Mortgages, credit cards, HPs.
    These items are NOT included at G11
  • Drawings included at G11 – these should be excluded & don’t have GST.
  • Merchant Fees have GST
  • Bank Fees don’t have GST
  • Insurance has GST but it isn’t 1/11. Stamp Duty portion has no GST.
  • There is no GST on income protection.
  • Registration for MV. Can only claim GST on the CTP if you have already stated that it is a business vehicle.
  • GST in not 100% of the purchase price of a motor vehicle e.g. Government fees, registration are GST Free.
    Purchase goes in G10.
  • Assets costing more than $1,000 need to go in G10 not G11.
  • GST claimed on GST free supplies
    -e.g. rates, stamp duty, water,
    -some staff amenities e.g. milk, sugar
    -ATO payments and fines (N-T)
  • Government Licencing does not have GST e.g. ASIC fees, BSA, Business Registration
    (BSA insurance has GST)
  • Residential properties – cannot claim GST
  • Sale of any business equipment (including motor vehicles) need to have GST on the sale and is included at G1
    G1 includes ALL income including those without GST e.g. Grants, interest, overseas
    sales but does not include ATO Refunds, bank loan funds, capital contributed by directors.
  • Entertainment expenses – generally only 50% of the GST is claimable
  • Wages & Superannuation do not have GST on them and are not reported at G11.
  • Protective and logoed clothing is deductible and has GST. Underwear and socks are not protective and are unlikely to have your business name on them.