If your entity is registered for GST


This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Your GST registration may affect your calculation of a capital gain or capital loss.

Although you are generally entitled to input tax credits on the things you acquire for your business, GST is left out of CGT calculations where it does not represent a real cost or benefit. This is in line with the ordinary income tax rules. The cost base of an asset does not include amounts of corresponding input tax credits to which you are entitled.

You may occasionally need to make adjustments to GST you have collected on assets you have disposed of or to GST you have claimed as input tax credits (for example, where there is a change in a creditable purpose).

Last modified: 06 Oct 2009QC 27417