GST rebates

Hey Wilko K

You can claim the full Get Stuffed Tax on a used car, provided that you have an ABN and claim Get Stuffed Tax.

If you are financing the car you must get a Chattle Mortgage loan.

All my trucks are second hand and I have always been able to claim full Get Stuffed Tax, The worst part was I bought a car before Get Stuffed Tax and wasn't able to claim it, when I sold it I had to pay the Get Stuffed Tax on it, Thanks very much Johnny.

Cheers Steve.

Offer the dealer cash as in crispies and ask for 10% price reduction. That way every one wins except little Johnney

"If you are financing the car you must get a Chattle Mortgage loan. "
unless something has changed recently, I have never heard of that?

It must only be that the loan is directly and obviously for the purchase of the vehicle. As in apply for the loan and transfer the money to the seller. Dont get the loan then use some of it for a holiday and some for the purchase etc.

If you buy the vehicle privately you dont need to pay GST, only if you buy it off someone who
A; is registered for GST and
B;is claiming the car as a business deduction.

You can only claim the GST back if you are
A; registered for GST
B; using it for a business purpose.

The simple answer is, if you buy a vehicle new or used 10% GST applies. If you are claiming back the GST ( that is you have an ABN or ACN) the tax invoice which you should have when you made the purchase should show the amount of GST.

Thomo

GST a lose-lose for us, and a win-win for the Govt.

We bought privately at a price similar to what car yards were asking, but can't get any GST back because there is none, whereas if we'd bought through a car yard, we would have claimed it back. When we sell privately, we have to give 1/11th as GST to Costcutto and gang of thieves.

Prior to GST, the wholesale tax on vehicles was i recall 22% at wholesale level; that came off when 10% GST at retail level came in. It did result in an effective drop in prices of cars, hence at the time, there was a phasing in period so as not to de-stabilise the car industry too much. Therefore cars should be more affordable, at the lower price level.

GST is 10% on everything (except exempt goods such as fresh foods, most medical services and a selection of mainstream education), so long as it is 100% business use to your GST registered business. Regardless of new of second hand, as pointed out above.

Luxury tax kicks in if selling above the specified figure of around $57,000, although there are exemptions, again only applying to businesses.

By your question, i suspect you are either very new to business, in which case you would be well advised to consult a taxation accountant before making any major purchases, as pre-planning is critical on saving yourself tax now and in the future, or you are not GST registered business at all, in which case GST becomes just part of your purchase price.

I will try again.

If I don't own a business and I buy a car, It doesn't matter who I buy it from, I don't claim GST when I buy it, I don't pay GST when I sell it.

If I own a business and have an ABN but not registered for GST, It doesn't matter who I buy the car from, I cannot claim GST, but if I sell it I have to pay 10% GST.

If I own a business and have an ABN and am registered for GST, I can buy a car from someone who isn't registered for GST, Then I can't claim GST on it, When I sell it I have to pay 10% GST.

If I own a business and have an ABN and registered for GST and I buy a car from someone that is also registered for GST I can claim 10% as a tax credit, when I sell it I pay 10 % GST.

I just bought a car for $44.500 I am registered for GST, I can claim $4045.45 as a tax credit.

If I sell it next year for $30.000 I will have to pay $2727.27 in GST

This is why I call it the GET STUFFED TAX.

If you think that was confusing, You might want to follow this link: Site Link

Cheers Steve.

Found out recently that if you are able to salary sacrifice, GST on vehicles can also be included.

Cheers.........Lionel.

if you pay FBT...f bullshiet tax? i think the full GST is claimable as an input tax for business is it not?

I have both chattle mortgage's and used to have other types of leases(really just a loan). The purpose of a chattle mortgage is so you can claim 100% of the GST back in the first installment, instead of over the life of the lease. This free's up your money quicker than getting gst it back each quater for 3 years, less paper work as well.
Any type of lease / loan / hire purchase can be claimed if it is business related, the only thing that varies is how much you can claim. Full comercial such as utes and vans are 100% without log boks etc, other cars need log books or you can only claim around 30%. This is just my experience. Cheers

If you lease a vehicle, you can claim 1/11th of the lease repayment, you are not buying the vehicle outright so cannot claim the GST on the 'purchase' price as you haven't bought it.
If you buy on HP and account for GST on a non-cash (or accruals) basis you can claim the GST straight away, if you are cash accounting (for GST purposes) as most businesses are you can claim the GST on the capital component only of each HP repayment. The capital component starts quite small and gets larger during the term of the contract (like a home loan you don't pay much back at all in the first few years) so you get back the GST in little bits.
That is why a chattel mortgage or secured loan is sometimes recommended over HP because you pay in full for the vehicle and can claim all of the GST on the day you buy the vehicle.
Mike.

The GST has created 3 levels of doing business

1. ABN and registered for GST: Will generally want to only do business with others registered for GST.

2. ABN and non GST registered: Best only to deal with similar businesses - group 1 won't want to deal with you.

3. The growth industry created by the GST: The cash economy. These do business only with private people, who normal would have to pay the GST, so get a bargain. The downside - the Govt still gets something - this 'business' pays GST of the bricks or whatever he buys for the jobs. They don't get income tax from him though, because he can't afford to reveal he's in business. He can probably get the dole too!

Hi Wilko,
Here is the gospel,
You can claim the GST charged by the vendor if
1. You are registered for GST
2. The vehicle is for busines use
3. You hold a valid tax invoice.
(If the vendor is not registered for GST you have not paid GST and will not get a tax invoice)
If the vehicle is not fully for business, you can only claim that percent of business use only and you must validate this percent by keeping log books for three months.
If you buy with a loan or chattel mortgage you can claim on your next BAS but if using HP you can only claim GST bit by bit on each payment, see my other follow up post hereabouts.

If you claim GST when you buy the vehicle you must charge GST when you sell it.

If in doubt ask your accountant. There has been some misinformation on this post so beware.

Re chattel mortgage
If you do GST on the cash imput you need to have chattel mortgage to claim gst imput as lump sum.

If you do gst on the accrual imput you do not need a chattel mortgage, as imputs and payments are claimed or paid up front. Before goods need to be paid for, but gst is paid before you may received the money for goods sold.
Cheers
Charlie