You can download a printable version of GST and progressive or periodic sales and purchases - completing your activity statement (PDF, 84KB) in Portable Document Format (PDF).
When we say:
- sales we are referring to the GST term supplies
- purchases we are referring to the GST term acquisitions
- GST credits we are referring to the GST term input tax credits
- reporting period we mean the tax period that applies to you
- payment received or paid we mean the GST term consideration.
If you account for GST on a non-cash basis, there are special rules about when to account for sales or purchases that are made and paid for progressively or periodically. For example, where you lease a property to someone and they pay rent monthly.
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If you account for GST on a cash basis, this fact sheet does not apply to you.
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For more information on cash and non-cash accounting, refer to:
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A progressive or periodic sale or purchase may include one made under a lease or hire agreement, a property maintenance agreement or a construction contract, but does not include one made under a hire purchase agreement.
You may use either the accounts method or the calculation worksheet method to complete the relevant GST labels on your activity statement for the reporting period. For information on each method, refer to GST - completing your activity statement (NAT 7392).
For sales, you account for the GST as if each component of the progressive or periodic sale is a separate sale. This means you report each progressive or periodic payment you receive at G1 (GST on sales) in the reporting period you receive it. However if you issue a separate invoice for a component of a progressive or periodic sale before you receive payment, you report the amount for that component of the sale at G1 in the reporting period in which you issue the invoice.
Do not report the whole amount you are due to receive for the sale when you receive the first payment, even if you issue a single invoice for the entire sale.
You may need to reduce the amount shown at G1 for any part of these sales that are not connected with Australia.
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For an explanation of the term 'connected with Australia', refer to:
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If you use the accounts method to work out the amount of GST you are liable to pay on your sales, report the GST included in the price of each component of the sale at 1A (GST on sales) for the relevant reporting period.
If you use the calculation worksheet method, use the worksheet to calculate how much to report at 1A.
For purchases, you claim GST credits for each component of the progressive or periodic purchase separately.
This means you report the amount of each progressive or periodic payment at G10 (capital purchases) or G11 (non-capital purchases) in the reporting period in which you make the payment. However, if you receive an invoice for a component of the progressive or periodic purchase before you make payment, you report the amount for that component of the purchase at G10 or G11 in the reporting period in which you receive the invoice.
Do not report the whole amount you are liable to pay for the purchase when you make the first payment, even if you have received an invoice for the entire purchase price.
If you use the accounts method to work out the amount of your GST credits, report the amount of the credits at 1B (GST on purchases) for the relevant reporting period.
If you use the calculation worksheet method, use the worksheet to work out how much to report at 1B.
For more information, refer to:
- Goods and Services Tax Ruling GSTR 2000/35 Goods and services tax: Division 156 - supplies and acquisitions made on a progressive or periodic basis
- Goods and Services Tax Ruling GSTR 2000/12 Goods and services tax: attributing GST payable and input tax credits for supplies and acquisitions under lay-by sale agreements.
If you do not speak English well and need help from us, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone us through the National Relay Service (NRS) on the numbers listed below:
- TTY users, phone 13 36 77 and ask for the ATO number you need
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the Tax Office number you need
- internet relay users, connect to the NRS on www.relayservice.com.au and ask for the Tax Office number you need.
Last Modified: Wednesday, 30 June 2010