Show download pdf controls
  • GST and the disposal of capital assets

    A capital asset is an asset retained by an enterprise for the purpose of earning revenue. A capital asset is not intended for sale in the ordinary course of business.

    Capital assets include things like:

    • motor vehicles
    • manufacturing machinery
    • office equipment
    • land and buildings.

    If you sell, transfer or otherwise dispose of a capital asset, and you're registered or required to be registered for GST, it's generally a taxable sale and you need to account for GST on the sale.

    You must report the payment (or other consideration) you receive at G1 (total sales) on your activity statement for the relevant tax period.

    Find out about:

    See also:

    • GSTR 2001/7 Goods and services tax: meaning of GST turnover, including the effect of section 188-25 on projected GST turnover, paragraphs 31-36
      Last modified: 24 May 2017QC 16711