G10 Capital purchases
Capital purchases are 'capital' items you purchase, including:
- business assets you purchase such as machinery, cash registers, computers and cars (these items are also referred to as plant and equipment)
- land and buildings.
These assets can be brand new or second-hand, and may be imported.
Things that aren't capital items include:
- trading stock
- normal running expenses such as stationery and repairs
- equipment rentals or leases.
What to report at G10
At G10 you need to report amounts for capital items, such as:
- machinery and equipment
- cash registers
- office furniture
- computers
- cars.
You also need to report the GST-inclusive market value of any capital item you receive from your associate for no payment or for less than the GST-inclusive market value at G10, if the following applies:
- you haven't received the thing wholly or partly for your business
- the thing received is wholly or partly of a private or domestic nature
- the thing received relates wholly or partly to making sales that would be input taxed
- if you are specifically entitled to quote an Australian business number (ABN) for the amount paid or payable for a purchase or importation of a car exceeding the car limit for the relevant financial year.
If your item isn't mentioned in this list, check what to do at other labels. Otherwise you may need to include it on another type of return.
Don't report at G10:
- purchases and importations that are not related to your business
- the stamp duty component of any capital purchases
- the amount paid or payable for a purchase or importation of a car that exceeds the car limit for the relevant financial year
- anything that is constituted by an insurer settling a claim under an insurance policy, or by an operator of a compulsory third-party scheme settling a claim under a compulsory third-party scheme (if you are not an operator of such a scheme).
Remove GST from the amount you report at G10 if you are using the accounts method and have chosen to show your amounts as GST-exclusive.
If you have imported capital items for your business, refer to Purchases and importations with special rules for information about other amounts to report at G10.
See also
- Additional instructions
- GST and motor vehicles
- GST and the disposal of capital assets
- Claiming GST credits
- Luxury car tax
Purchases for $1,000 or less
G10 (and G11) require you to separately report your capital and non-capital purchases.
If you:
- record these purchases separately in your records, use this existing breakdown to fill in the G10 and G11 labels
- if you don't record capital and non-capital purchases separately and your GST turnover is expected to be less than $1 million then
- you need to record capital items costing more than $1,000 at G10 (capital purchases)
- capital and non-capital items costing $1,000 or less can be recorded at G11 (non-capital purchases).
G11 Non-capital purchases
Non-capital purchases may include:
- trading stock
- normal running expenses, such as stationery and repairs, equipment rentals or leases.
See also
What to report at G11
At G11, you need to report all of your business purchases relevant to the reporting period (other than those reported at G10), such as
- most business purchases, including services and stock bought for resale
- the price of any insurance premiums related to your business (except for third-party motor insurance premiums relating to a period of cover starting before 1 July 2003) less the amount of stamp duty
- purchases paid for by an employee, agent, officer or partner that you have reimbursed in specified circumstances
- capital items costing $1,000 or less that haven't been reported at G10
- intangible supplies purchased from off-shore that are of a non-capital nature.
You also need to report the GST-inclusive market value of any non-capital item you receive from your associate for no payment or for less than the GST-inclusive market value, if any of the following apply:
- you haven't received the thing wholly or partly for your business
- the thing received is wholly or partly of a private or domestic nature
- the thing received relates wholly or partly to making supplies that would be input taxed.
If your item isn't mentioned in this list, check what to do at other labels. Otherwise you may need to include it on another type of return.
See also
- GST and employee reimbursements
- GSTB 2000/2 How to claim input tax credits for car expenses
- GSTB 2001/3 Simplified calculation of input tax credits for caravan park operators
Purchases and importations with special rules
Importations
For non-taxable importations, report at G10 or G11 (depending on whether the goods are capital or non-capital items) the amounts you have paid, or are liable to pay, for all of the following:
- the goods imported
- the international transport of the goods to their place of consignment in Australia
- insurance of the goods for that transport.
For taxable importations, report at G10 or G11 (depending on whether the goods are capital or non-capital items) any of the following:
- the sum of the following
- the Customs value of the goods imported
- the amounts you have paid or are liable to pay for international transport of the goods to their place of consignment in Australia (if not included in the Customs value) insurance on the goods for that transport (if not included in the Customs value)
- any Customs duty you are liable to pay in relation to the importation of the goods, including
- any wine tax for the local entry of the goods
- GST on the taxable importations
- the GST you are liable to pay on the imports multiplied by 11.
If you pay additional GST to Department of Home Affairs because it was underpaid on a previous importation of a capital or non-capital item, report the amount of GST paid, multiplied by 11 at G10 or G11. This also applies if the additional GST is deferred under the deferred GST scheme.
See also
Purchases of excisable goods in bond
If you purchase excisable goods in bond, report them at G10 or G11 (depending on whether the goods are capital or non-capital items).
Don't report the actual price you paid or are liable to pay for the purchase if any of the following occur – your purchase:
- was not wholly or partly for your business
- relates wholly or partly to making sales that would be input taxed
- is wholly or party of a private or domestic nature.
Instead, you must:
- work out how much GST you are liable to pay on the goods you have purchased
- multiply this amount by 11
- report this amount at G10 or G11.