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When you cannot claim a GST credit

Check when you are not eligible to claim GST credits.

Last updated 5 August 2019

You cannot claim a goods and services tax (GST) credit:

  • if you are not registered for GST
  • for purchases that do not have GST in the price, including
    • where the sale to you is GST-free (such as basic foods)
    • where the sale to you is input-taxed (such as residential accommodation, bank fees and loan interest)
    • purchases from a supplier that is not registered or required to be registered for GST (and therefore cannot charge GST)
  • for wages you pay to staff (there is no GST on wages)
  • if you do not have a valid tax invoice for purchases that cost more than A$82.50 (including GST) when you lodge your activity statement, however, there are specific circumstances where GST credits can be claimed without a tax invoice.

You also cannot claim GST credits for some purchases (even if GST is included in the price), including:

  • to the extent that a purchase is for a private or domestic purpose
  • to the extent that a purchase is for making an input-taxed supply (such as those associated with providing residential accommodation)
  • for real property purchased under the margin scheme
  • for some purchases that you cannot claim as an income tax deduction (such as entertainment expenses)
  • for the part of the purchase price of a car that is over the car limit amount for the relevant financial year
  • where the time limit for claiming a GST credit for the purchase has ended.

See also