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.

Exceptions

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).
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