Goods and services tax (GST) reporting on the business activity statement (BAS) is getting easier for small business. This is due to a change to GST reporting called Simpler BAS.
From 1 July 2017 small businesses with an annual GST turnover of less than $10 million will have less GST information to report on their BAS. The only GST information required will be:
- G1 Total sales
- 1A GST on sales
- 1B GST on purchases
- The following GST information will no longer be required:
- G2 Export sales
- G3 GST-free sales
- G10 Capital purchases
- G11 Non-capital purchases
- The GST cycle that you report on (monthly, quarterly or annually) will not change.
If you are eligible, you don’t need to do anything to access Simpler BAS reporting. If you lodge online the ATO will automatically send you a BAS requiring less GST information. If you are a paper lodger you will only need to complete G1 Total sales, 1A GST on sales and 1B GST on purchases.
The ATO may have already sent you correspondence regarding this.
Simpler BAS will not affect how other taxes are reported (eg PAYG income tax instalments or PAYG tax withheld), or how often you submit your BAS.
You still need to keep records, such as invoices, as proof of any claims you make in your BAS and income tax return lodgements.
How can Simpler BAS help me with my bookkeeping?
As there will be fewer GST classification codes that need to be reported to the ATO, if you choose, you can simplify your bookkeeping and only have two GST codes in your software – GST or No GST