Hi I would just like some clarification.
I currently work occasionally as a Sole Trader, and I am not registered under GST.
I would like to make a purchase for both a laptop and phone via an online sellers, but some sellers do not offer GST or a tax invoice for the purchase.
If I am to make a deduction for business purposes, would I need to purchase the phone/laptop with GST + ABN Invoice in order to make the deduction.
Cheers
medical advice
No insurance after an accident advice -> In the wrong but want to get out of fine avoidance -> buying a drone and making false claims to the ATO advice
Who knew there was a guide in OzB Wiki on using MS Paint.
If you have an ABN, you can claim the full cost of phone. Need a tax invoice though or at least a receipt of some kind showing amount
You don't need to supply receipts but need to keep records for several years in case ATO asks for them
You need an ABN to charge GST and claim input credit. If you don't have ABN it doesn't stop you claiming full price of the purchase as cost. Get a good accountant.
Pretty sure if it's under $300 you can claim the full cost of the item that financial year. Otherwise you need to do the depreciation. ATO website is surprisingly helpful with stuff like that! :)
Not too sure about actual tax invoice. I'm sure any kind of purchase receipt would be okay. Don't quote me on that, though.
What is the instant write-off limit of $30,000?
I thought you can claim capital expenses using that.
You are right. $300 is not for sole traders. My bad. It's $20,000 for sole traders - big difference! I was way off.
Quick google came up with this:
https://www.onlinetaxaustralia.com.au/everything-need-know-c…
Obvs that's focused on tools for trades but the rule is the same.
You need to apportion between personal/business use but you can use the bank account transaction and the ebay listing as substantiation.
Speak to your accountant however I have claimed items bought OS (used 100% for work) so not only no GST but no Australian receipt period.
You have said that you are not registered for GST, therefore it doesn't matter if you purchase from someone registered or not registered for GST (apart from a higher cost to you theoretically).
You will need an invoice or receipt for the purchase, once again regardless of GST.
Apportion the cost of the laptop/phone based on business use and personal use.
You will be able to fully depreciate (claim all in one go) the business percentage.
For example. $1,000 laptop + $100 GST = $1,100 x 50% business use = $550
For example. $1,200 phone with no GST = $1,200 x 40% business use = $480
You will be able to claim $1,030 as a deduction in your business section of your tax return.
Side note, the benefits of the deduction vary depending on whether or not you have business income to offset the deduction against.
Hope that helps :)
Thanks for the help. I really appreciate it!
Ozbargain over the last 12 months
Accident advice > fine avoidance advice > tax advice