Joanne is GST registered, so collects GST on the sales of her bags, and claims it back on purchases like:
- materials and supplies for making her bags
- her new sewing machine.
She can also claim:
- taxi fares to business meetings
- a laptop she bought to manage her business finances
- the accounting software she uses
- food and drink bought when entertaining clients.
Mike's just started his building business. He's not sure if he'll earn more than $60,000 in his first year, but he's registering for GST straight away because he has big expenses — he'll claim GST back on:
- the ute he bought for work
- his work tools
- tools he bought for his apprentice
- the computer, printer and mobile phone he bought for business use only
- the GST portion of his work mobile phone bill
- his accountant's fees.