GST and financial supplies - completing your activity statement

Borrowing

Borrowing can be secured or unsecured and includes raising funds by issuing a:

• bond
• debenture
• discounted security
• other document evidencing indebtedness.

You may be able to claim GST credits on purchases you make that relate to you making a financial supply (consisting of a borrowing), to the extent that the borrowing relates to you making supplies that are not input taxed.

From 1 July 2012 this concession does not apply if you are an Australian authorised deposit taking institution, such as a bank, building society or credit union, and the purchase relates to you making a financial supply consisting of a borrowing made through a deposit account.

If you are the lender purchases that relate to loans you make are financial acquisitions.