Getting your GST back on purchase of Equipment under Finance
If you are in business and are planning to buy a new car or plant and equipment on finance, you could receive back all the GST paid on that purchase up front.
Firstly this will depend on whether you are registered for GST and which method you are accounting for your transactions. If you are taking out a mortgage or receiving finance under the Credit Act or Chattels Act, then a claim for the full amount of GST can be made. If the finance is received under the Hire Purchase Act or Lease Act, then a claim for a partial amount of GST can be made with each instalment over the period of the facility.
Not all finance companies will automatically offer this type of finance. You may have to ask for the finance to be provided under the Credit Act or Chattels Act. If you have any doubts, get our advice before you commit to the purchase.
Give Ross Wadeson Accountants Pty Ltd a go, (03 9580 9866)