If your activity statement is delayed it may have been to check that you haven’t claimed a personal expense as a business expense.
When claiming GST credits remember:
- you can only claim a GST credit for goods or services used in your business
- if you have goods or services you also use for personal purposes, you can only claim the business portion
- you need to keep track of the business portion using the logbook method
- for purchases over $82.50 including GST you will need to keep tax invoice
Some typical expenses that can include business and personal use are:
- motor vehicles
- domestic air travel or taxi travel
- mobile phone and internet communication
- home-office furniture.
Portion expenses
To complete your activity statement correctly, make sure you portion your expenses. For example, if you use your mobile phone 80 per cent of the time for business and 20 per cent for personal purposes, then you can only claim 80 per cent of the GST you pay on your mobile phone bill.
Article taken from ato.gov.au/newsroom
