GST and financial supplies - completing your activity statement

Financial acquisitions threshold

There are two tests you can use to see if you exceed the financial acquisitions threshold. You may exceed the threshold under either test. Both tests are based on financial acquisitions you make. A financial acquisition is an acquisition that relates to the making of a financial supply (other than a borrowing).

Both tests take into account all the financial acquisitions you make over a 12 month period:

• current financial acquisitions mean financial acquisitions you make over the whole of the current month plus the previous 11 months
• future financial acquisitions mean financial acquisitions you make over the whole of the current month plus the following 11 months (you must estimate this amount).

To test whether you exceed the financial acquisitions threshold in a particular month, you must assume that the financial acquisitions you have made, or are likely to make, are not used:

• to make input taxed sales
• partly for a private or domestic purpose.

You exceed the financial acquisitions threshold for a particular month if the GST credits you could claim for current or future financial acquisitions are more than either of the following:

• $50,000 (before 1 July 2012) or $150,000 (on and after 1 July 2012) in the relevant 12-month period
• 10% of the total amount of GST credits you could claim for all your purchases (including financial acquisitions) during the relevant 12-month period.

For more information about the financial acquisitions threshold, refer to: GSTR 2003/9 Goods and services tax: financial acquisitions threshold section 7 of Financial services - questions and answers.