Whether you're an individual or you’re a business owner, it’s important to know how much GST is being charged on your purchases and how much you should be claiming back. There are a few things you can do to make sure that the amount of GST charged on your purchases is correct. Here are a few tips to make sure your GST is correct.

Motor vehicle registration - Not all of the money you spend on your motor vehicle registration in your business will be subject to GST. GST is only applied to the insurance portion. Make sure that the Department of Transport invoice you are submitting is placed in the separate line items that are itemized at the bottom of the registration papers to ensure that your GST is correct before you press the approve button and save that bill in your system. Get the GST on your motor vehicle registrations right. The actual registration doesn't include GST, and neither does stamp duty.

Insurance - Make sure you split up the difference between the insurance premium and the stamp duty when you enter your data in your bookkeeping program because the stamp duty is GST free and you can't claim GST. Most insurance policies, with the exception of one insurance policy that doesn't have it, will have a stamp Duty component to them that is GST free. Therefore, when it comes to paying your insurance, it's not entirely GST.

Rent - It is always a good idea to ask your landlord if they are registered for GST because rent for a residential property is always GST-free because it is clearly stated in the law. However, if you have a commercial property, your landlord may be charging you GST if they are registered for GST.

ABN lookup website - go to the ABN lookup page and type the Business Name or ABN into the search bar. This website will inform you whether or not your supplier or the person you're paying is registered for GST or not.  If they aren't registered for GST, you can't claim GST on what they're selling you.

Receipts - the general rule is that if something costs more than $75 plus GST, or $82.50 including GST, you must have a receipt to claim the GST. If you are unlucky and are audited for a GST audit, make sure you have all of your receipts for everything you buy especially if it's over $75 plus GST.

Keeping track of your GST can also be a great record-keeping strategy. Being able to refer to your purchase records will help you stay organized, and if you need to make a claim on any input tax credits at the end of the year, it'll save you some time and hassle. Our team here is an expert in organizing and is happy to help you keep track of your GST and take care of it.

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