Claiming GST credits
Generally, if you do not exceed the financial acquisitions threshold you can claim full GST credits on purchases you use to make financial supplies.
You may also be able to claim full GST credits on your purchases if you use them to make GST-free supplies of shares to non-residents.
However, you cannot claim full GST credits if both of the following apply:
- your purchases relate to making financial supplies
- you exceed the financial acquisitions threshold.
In this situation, you may be able to claim reduced GST credits on certain purchases if they are reduced credit acquisitions.
Reduced credit acquisitions
Reduced credit acquisitions are certain types of purchases listed in the GST regulations that you can claim a reduced GST credit on when you use them to make financial supplies.
Generally, you can claim 75% of any GST included in the purchase price of a reduced credit acquisition.
You can claim reduced GST credit on reduced credit acquisitions that relate to floating your company. Some examples are listed in the following table.
See also:
- A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 1)External Link
- GSTR 2004/1 Goods and services tax: reduced credit acquisitions for a complete list of items that are reduced credit acquisitions