Goods and services tax: how to claim input tax credits for car expenses

GSTB 2006/1 explained how to claim input tax credits for car expenses and how to determine the extent of creditable purpose, including using certain income tax deduction methods.

Two of the income tax methods included in GSTB 2006/1 were repealed as of 1 July 2015: • 12% of original value method, and • one-third of actual expenses method.

The remaining two income tax methods are still available for the 2015-2016 financial year onwards. These are: • cents per kilometre method, and • logbook method.

Information about determining the extent of creditable purpose, including for car expenses, is available in Goods and Services Tax Ruling GSTR 2006/4 Goods and services tax: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose . Consequently, a replacement ruling will not be issued.