• Simpler BAS eligibility and GST reporting methods

    Eligibility for Simpler BAS

    All businesses with a GST turnover of less than $10 million are eligible for Simpler BAS

    If you are eligible, you have been automatically transitioned to Simpler BAS reporting from 1 July 2017.

    However, if your GST turnover is $10 million or more, you are required to use the full reporting method.

    The GST cycle you report on (monthly, quarterly or annual) is not affected by Simpler BAS. So if you reported GST annually in the past, you continue to report annually after 1 July 2017.

    Simpler BAS does not affect how other taxes are reported (eg PAYG income tax instalments or PAYG tax withheld).

    GST reporting methods

    From 1 July 2017 you no longer elect your GST reporting method, including GST instalments, on your BAS. Your GST turnover determines your GST reporting method.

    • If your GST turnover is $10 million or more, you report GST using the Full reporting method.
    • If your GST turnover is less than $10 million, you report GST using the Simpler BAS reporting method.
    • If your GST turnover is less than $10 million and you currently use the GST instalment method, you generally continue to use it – if the instalment method is available to you, a GST instalment amount will show on your BAS.

    The GST turnover figure we use to determine your GST reporting method is obtained from your ATO records. It was previously advised by you (at GST registration or subsequently).

    Your GST reporting method will generally be rolled over at the end of each financial year based on your GST turnover. Contact us on 13  28 66 to update your GST turnover and change your reporting method.

    Find out about:

    If your GST turnover changes

    If your GST turnover reaches $10 million or more you should call us on 13 28 66 to update your turnover. We will move you to full reporting from the start of the next financial year.

    If your GST turnover falls below $10 million, you should call us on 13 28 66 to update your turnover. In this case we will:

    • move you to Simpler BAS reporting from the start of your next tax period, or
    • move you to GST instalments if you are eligible for and elect to use GST instalments (quarterly reporters only) – the start date depends on when you make your election.

    See also:

    Full reporting method (≥ $10 million GST turnover)

    If your GST turnover is $10 million or more, you report using the full reporting method.

    On your monthly or quarterly BAS, you must report the following GST information:

    • G1 Total sales
    • G2 Export sales
    • G3 Other GST-free sales
    • G10 Capital purchases
    • G11 Non-capital purchases
    • 1A GST on sales
    • 1B GST on purchases

    You remain on full reporting while your GST turnover is $10 million or more.

    Simpler BAS reporting method (< $10 million GST turnover)

    If your GST turnover is less than $10 million you report using the Simpler BAS reporting method.

    On your monthly or quarterly BAS, or your annual GST return, you must report the following GST information:

    • G1 Total sales
    • 1A GST on sales
    • 1B GST on purchases

    GST information is no longer required for:

    • G2 Export sales
    • G3 Other GST-free sales
    • G10 Capital purchases
    • G11 Non-capital purchases

    If you use any of our electronic lodgment options, you will only be asked to give us amounts for those three labels, excluding lodgments made through electronic commerce interfaceExternal Link (ECI) and electronic lodgment service (ELS) which require a 0 inserted at G10 Capital purchases and G11 Non-capital purchases.

    If you lodge a paper BAS or annual GST return, sections where information is no longer needed can be left blank.

    Under Simpler BAS reporting you no longer need to complete the GST calculation worksheet.

    If you were previously a streamlined quarterly reporter (option 2), you no longer need to complete the GST annual information report.

    For annual reporters, your annual GST return for 2016–17 will have the additional GST information requirements. You have the option to leave these sections blank if you have already configured your accounting software for Simpler BAS.

    GST instalment method (< $10 million turnover, and pay GST instalments and report annually)

    If your GST turnover is less than $10 million and you currently pay GST instalments and report annually, you generally continue to use it. If the GST instalment method is available to you, a GST instalment amount will show on your BAS.

    On your annual GST return, you must report the following GST information:

    • G1 Total sales
    • 1A GST on sales
    • 1B GST on purchases
    • 1H GST instalment amounts reported in your quarterly instalment notices for the period shown on the annual GST return.

    GST information is no longer required for:

    • G2 Export sales
    • G3 Other GST-free sales
    • G10 Capital purchases
    • G11 Non-capital purchases

    If you use any of our electronic lodgment options, you will only be asked to give us amounts for those three labels, excluding lodgments made through ECI and ELS which require a 0 inserted at G10 Capital purchases and G11 Non-capital purchases.

    If you lodge a paper annual GST return, sections where information is no longer needed can be left blank.

    You no longer need to complete the GST calculation worksheet for your annual GST return

    Your annual GST return for 2016–17 will have the additional GST information requirements. You have the option to leave these sections blank if you have already configured your accounting software for Simpler BAS.

    If you do not currently use the GST instalment method but would like to, you need to call us on 13 28 66. You must report GST quarterly to use this method.

    If you would like to report your actual GST amounts instead of paying GST instalment amounts, you can switch to the Simpler BAS reporting method by contacting us on 13 28 66. This will remove the need to lodge an annual GST return at the end of the year.

    See also:

    Newly registered small businesses with a backdated GST registration start date

    If you are an eligible newly registered small business and you register for GST with a start date earlier than 1 July 2017, with Simpler BAS you have the option to report less GST information for tax periods prior to 1 July 2017.

    To take advantage of this option, you will need to do the following for your tax periods prior to 1 July 2017:

    • If you selected a quarterly GST reporting cycle when registering for GST, select Option 2: Calculate GST quarterly and report annually on your first BAS. We will not seek the additional GST information or annual GST information report.
    • If you selected a monthly GST reporting cycle at GST registration, you can insert 0 at G2, G3, G10 and G11 on your BAS (or for paper lodgers, leave those labels blank).
    • if you selected an annual GST reporting cycle at GST registration, you can insert 0 at G2, G3, G10 and G11 on your annual GST return (or for paper lodgers, leave those labels blank).
    Last modified: 30 Jun 2017QC 52114