What is the GST treatment of rubber tyred construction equipment (eg mobile cranes) which is purchased by a contractor in the carrying on of its business?
ATO Position Each of the following rubber tyred construction equipment are not considered to be “motor vehicles” for the purpose of section 20 of the GST Transition Act where they are designed to perform a function unrelated to public road use and their ability to travel on a public road is merely incidental to that design: • Motor Graders • Backhoe/ Loaders • Skidsteer/ Loaders • Telescopic Materials Handlers • Rubber Tyred Loaders • Mobile Cranes GST input taxed credits are available for a purchase or importation of plant and equipment on or after 1 July 2000 for creditable purposes provided that the company is registered for GST. However, if you buy the construction equipment after 1 July 2000, you will pay a 10% GST of the value of the construction equipment. Where you import plant and equipment, its value is the sum of the customs value, the amount paid for transport and insurance, and the customs duty paid or payable. No credit is allowed for sales tax paid on the purchase of pla
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