Skip to main content

Can You Claim GST on Business Insurance?

 When you're running a business, every dollar counts—especially when it comes to taxes. One of the common questions we receive at Auswide Insurance Brokers in Seven Hills is:

"Can I claim GST on my business insurance premiums?"

The short answer is: Yes, in most cases, you can claim GST on business insurance premiums—but there are a few important details to consider.



Understanding GST on Business Insurance

In Australia, most business-related goods and services are subject to Goods and Services Tax (GST), and business insurance is no exception. When you purchase an insurance policy for your business—such as public liability, professional indemnity, commercial property, or vehicle insurance—the premium often includes GST.

If your business is registered for GST, you're generally entitled to claim a GST credit (input tax credit) for the GST included in the premium. This credit can then be used to offset the amount of GST you owe to the ATO in your Business Activity Statement (BAS).

What Kind of Insurance is GST-Claimable?

Here are a few examples of business insurance types where you can usually claim GST:

  • Public Liability Insurance

  • Professional Indemnity Insurance

  • Business Interruption Insurance

  • Commercial Vehicle Insurance

  • Property and Contents Insurance

  • Cyber Insurance

The key condition is that the insurance must be used solely or primarily for business purposes.

Important Considerations

  • Private Use Adjustments: If the insurance policy also covers personal use (e.g., a vehicle used for both business and personal use), you'll need to apportion the GST credit accordingly. You can only claim the business-use portion.

  • Insurance Payouts: If you receive an insurance payout, GST may be applicable to the amount received, especially if the payout is related to a claim on a GST-creditable asset. This can affect your GST reporting, so it’s best to speak with your accountant.

  • Non-GST Registered Businesses: If your business is not registered for GST, you cannot claim input tax credits—even if the insurance premium includes GST.

How to Claim the GST Credit

To claim the GST on your business insurance:

  1. Ensure your business is registered for GST.

  2. Check your tax invoice – it should clearly show the GST amount included in the premium.

  3. Include the GST credit in your BAS under the appropriate section.



Speak to a Professional

Insurance and tax can both be complex, and the right answer often depends on your specific situation. At Auswide Insurance Brokers, we help Seven Hills businesses navigate their insurance needs with expert advice and tailored coverage options.


While we can help you choose the right insurance policies to protect your business, we always recommend speaking to your accountant or tax adviser to ensure you’re claiming GST credits correctly.

Need help with your business insurance?


 Contact the team at Auswide Insurance Brokers in Seven Hills today. We’ll help you find the right cover—and ensure your business stays protected, compliant, and financially efficient.

Comments

Post a Comment

Popular posts from this blog

Do I Need Public Liability Insurance as a Sole Trader in Australia?

  Introduction If you're operating as a sole trader in Australia , you're likely juggling everything from sales and service to admin and invoicing. But one area many sole traders overlook is insurance —specifically, public liability insurance . So the question is: Do you really need it? The short answer is: Yes, in most cases—it's highly recommended, even if not always mandatory. This guide will explain everything you need to know— in plain English —about public liability insurance and how it protects you and your business. What Is Public Liability Insurance? Public liability insurance is designed to protect your business if your activities cause: Injury to a member of the public Damage to someone's property It covers legal fees, compensation claims, and settlement costs—expenses that can quickly run into tens or hundreds of thousands of dollars .  Example: You're a mobile mechanic and accidentally damage a customer's car. Example: A client trips over your...
Post a Comment
Read more

Who Offers the Best Professional Liability Insurance in Australia?

  When you're a professional offering advice, services, or expertise — mistakes can happen , and unfortunately, those mistakes can cost you more than just your reputation. That's where professional liability insurance (also known as Professional Indemnity Insurance ) becomes essential. But the big question remains: Who offers the best professional liability insurance in Australia? At Auswide Insurance Brokers , we’re proud to help professionals like you find the right coverage at the best price — tailored to your industry, risk level, and business needs. What Is Professional Liability Insurance? Professional liability insurance protects professionals from claims of: Negligence or errors in your work Incorrect or misleading advice Failure to deliver services as promised Breach of professional duty This cover helps pay for legal costs , compensation payouts , and ongoing claim expenses , even if you’re not at fault. It’s commonly required by: Consultants and contractors Acco...
Post a Comment
Read more

Are Insurance Brokers Worth It in Australia?

  Introduction When it comes to securing insurance in Australia, many people find themselves overwhelmed by the multitude of options available. With a wide range of policies, premiums, and providers to choose from, it can be difficult to know where to begin. This is where insurance brokers come in. But the question remains: Are insurance brokers worth it? At Auswide Insurance Brokers , we’ve helped thousands of clients find the best insurance solutions to suit their needs. In this blog, we’ll break down what insurance brokers do, how they can save you time and money, and whether you should consider hiring one for your insurance needs in Australia. What is an Insurance Broker? An insurance broker acts as an intermediary between the client (you) and the insurance companies. Instead of purchasing insurance directly from a provider, a broker works on your behalf to find a policy that suits your specific needs. They assess your individual circumstances, compare various products, and r...
Post a Comment
Read more