Who claims the GST and deductions on a private vehicle used in a partnership?

 Author: JayATO(Community Support)Community Support

28 Apr 2026

Hi @Marina5,

For question 1, the partnership claims the motor vehicle expense deductions, not you personally. When you use your privately owned vehicle for partnership business purposes, the partnership should reimburse you for the business-related running costs. The partnership then claims these expenses as business deductions in the partnership tax return.

The partnership must use the actual cost method to claim motor vehicle expenses. This means the partnership can only claim the percentage of actual costs that relate to business use of the vehicle. You'll need to separate private from business use and keep records that allow you to work out the business use percentage (90% in your case).

For question 2, the partnership can claim GST credits for the GST included in the vehicle running expenses, provided the partnership is registered for GST. The GST credits are claimed in proportion to the business use of the vehicle. The partnership would claim these GST credits in its business activity statement.

You'll need to keep all receipts and records to substantiate the claims. A logbook or diary recording private versus business travel is important for proving the business use percentage.

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