Should GST be deducted from a lease and repayments? : AssetAccountant

Should GST be deducted from an Australian lease repayment and amount financed? Print

Modified on: Thu, 14 Dec, 2023 at 12:05 PM

For an Australian lease, if you have the situation where the entire cost of the lease can be claimed on GST, when using AssetAccountant, should you deduct GST (Goods and Services Tax) from both the repayments and the amount financed value?

The answer is that it depends on the lease agreement with your financier.

In many cases the financier will have the lease cover the cost inclusive of GST and then that factors into your repayments.

This is notwithstanding you claim back the GST in your next BAS.

(so in effect you are getting a loan for the value of the GST)

In this case, use the GST inclusive numbers.

If GST is not factored into the agreement you have with your financier, then use the ex-GST numbers.

Did you find it helpful? Yes No

Should GST be deducted from an Australian lease repayment and amount financed? Print

Related Articles