We have listened to the concerns of small businesses, tax professionals, industry associations and software providers, and are working towards reducing GST compliance costs for small businesses.
We are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements.
A simpler BAS will give small businesses significant time and cost savings by simplifying account set up, GST bookkeeping and BAS preparation. Businesses will be able to more easily classify transactions and prepare and lodge their BAS.
From 1 July 2017, small businesses will only need to report the following GST information on their BAS:
- GST on sales (1A)
- GST on purchases (1B)
- Total sales (G1)
The requirement to report Export sales (G2), other GST free sales (G3), Capital purchases (G10) and Non-capital purchases (G11) will be removed.
A simpler BAS will support greater use of existing automation functions and potential digital solutions as they evolve.
We have commenced testing the proposed changes with small businesses, tax professionals and software developers to ensure we get it right. The Phase 1 Alpha testing report outlines the findings and recommendations from the testing. View the full report on the simpler BAS software developerExternal Link webpage.
We are working on ways to simplify the business activity statement for small business.