Insights & News

Purchasing a Motor Vehicle - Can you claim 100% GST on the cost?

Generally, if you purchase a car and the price is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of that limit. For 2021–22, the maximum GST credit you can claim is $5,521 (that is, 1/11 × $60,733). This limit also applies to cars which are fuel efficient.


In certain circumstances you can claim a GST credit for the full amount of GST included in the price of a car even if the car costs more than the car limit. The car must be used in carrying on your business and at least one of the following conditions must be met:

  • you hold the car solely as trading stock, other than holding the car for hire or lease
  • you carry out research and development for the manufacturer of the car
  • you export the car in circumstances where the export is GST-free
  • it is an emergency vehicle
  • it is a commercial vehicle that is not designed for the principal purpose of carrying passengers
  • it is a motor home or campervan
  • it is a vehicle specifically fitted out for transporting disabled people seated in wheelchairs (unless the sale of the car was GST-free).
Related Articles
businessman and wooden blocks with the word stamp 2023 11 27 05 34 47 utc 1080x675
19 April 2024
Commercial & Industrial Property Tax Reform

Commercial & Industrial Property Tax Reform: Bill Introduced

Read full article
Screenshot 2024 04 04 162514
5 April 2024
ATO chases debt

ATO chases small businesses for $34b in debt

Read full article
How to communicate a price increase
12 March 2024
Contribution caps

  Contribution caps to increase from 1 July 2024 

Read full article
Looking to Learn How We Can Help?

Our discovery sessions are a chance to assess market opportunities for your business – advising you on the best pathways to achieving your long-term financial goals.

Book Your Discovery Session