Step 1: Sales
Step 1 includes information about:
- G1 total sales
- G2 export sales
- G3 other GST-free sales.
G1 total sales
If you are using the calculation worksheet method, you report at G1 total sales, all:
- GST-free sales you make
- input taxed sales you make
- taxable sales you make (including the GST).
If you are using the accounts method, you report at G1 total sales all:
- GST-free sales you make
- input-taxed sales you make
- taxable sales you make.
Include the GST on the taxable sales only if you have chosen to report amounts that include GST. If you have chosen to report GST-exclusive amounts, you do not report the GST component on your taxable sales at G1.
You can choose to exclude GST from G1 only if you are using the accounts method. You must include GST in amounts you report at all labels on your activity statement if you are using the calculation worksheet method.
The amount you report can vary depending on which accounting basis you use to complete your activity statement.
Before completing G1:
- check if you need to obtain any of the additional instructions that apply to your sales
- write ‘0’ at G1 if you have no sales in the reporting period.
What you do and do not report at G1
Report at G1:
Total amounts for sales including:
- goods or services you sell or supply
- sales of trading stock
- the sale of business assets such as office equipment or motor vehicles (including trade-ins)
- the sale, lease or rental of land and buildings
- memberships you have provided
- earnings from financial supplies you make (for example, interest from bank accounts or lending money, but not including the loan principal)
- goods and services provided in return for government grants and some private sector grants
- cancelled lay-by sales
- forfeited customer security deposits
- employee contributions for fringe benefits you have provided
- the sale of a debtor property that was made to satisfy the debt owed to you (if the debtor otherwise would have had to pay GST on the sale)
- creating, granting, transferring, assigning or surrendering a right (for example, royalties received)
- entry into, or release from, an obligation to
- do anything
- refrain from an act
- tolerate an act or situation (for example, agreeing as part of the sale of your business to not operate a similar business within a certain area).
- providing goods or services in return for sponsorship
- the GST-inclusive market value of goods and services (or other things) you receive in barter transactions
- the GST-inclusive market value of anything you supply to an associate
- for no payment or sell to an associate for less than the GST-inclusive market value if
- your associate is not registered, or required to be registered, for GST
- your associate has not received the thing either partly or wholly for their business
- the thing received by your associate relates partly or wholly to making sales that would be input taxed
- the thing supplied is partly or wholly of a private or domestic nature.
Do not report at G1:
- dividends you receive
- donations and gifts you receive
- private sales that are not related to your business, for example, selling your home or furniture from your home
- salary and wages you receive
- government pensions and allowances
- amounts you receive from hobby activities
- trust and partnership distributions you receive
- tax refunds
- receipts for services provided under a pay as you go (PAYG) voluntary agreement – unless it is made to a business that cannot fully claim GST credits for the services
- business loans you receive
- the amount on the sale of a luxury car that is the luxury car tax (LCT) paid or payable by you
- taxes, fees and charges you have received that don’t include GST
- amounts received for sales not connected with Australia, unless a special rule makes the sales taxable, GST-free or input taxed
- anything that is constituted by an insured settling a claim under an insurance policy or in settling a claim under a compulsory third-party scheme (if you are not an operator of such a scheme), for example, if you supply goods to an associate as part of settlement of a claim under an insurance policy.
Remove GST from the amount you report at G1 if you are using the accounts method and have chosen to show amounts as GST-exclusive.
If you have made a GST-free sale of exported goods and show the free on board value (this is the value for Customs and Border Protection purposes) of the export at G2 together with the amount received for freight and insurance relating to that export at G3, then report at G1 the amount equal to the sum of the amounts shown at G2 and G3 for that export.
Sales with special rules
Sales of excisable goods in bond
If you have made a sale of excisable goods in bond, report the sale at G1.
However, you should report at G1 the sale price plus 110% of the excise duty that would have applied if the goods had been entered for home consumption if you make a sale to a purchaser who is either:
- not registered or required to be registered for GST
- registered or required to be registered for GST but the purchase
- is not wholly or partly for their business
- is wholly or partly of a private or domestic nature
- relates wholly or partly to making sales that would be input taxed.
For assistance with sales of goods in bond, contact us by phone.
If you conduct the following types of sales, there may be special rules you need to consider when you report an amount at G1 on your activity statement:
- hire purchase sales
- sales made through an agent
- sales made as agent for a non-resident
- coin-operated machine sales
- sales for which part of the payment is received before the total payment is known
- sales made under a conditional contract or a contract subject to retention clause.
G2 Export sales
This section describes what you do and do not report at G2. Special rules apply in some circumstances.
All amounts reported at G2 should also have been reported at G1.
What you do and do not report at G2
Report at G2:
The free-on-board value of export goods (that is, the value used for Customs purposes) if the export is GST-free because:
- you export the goods from Australia within 60 days after either
- the day you receive any payment for the sale
- you issue an invoice for the sale before you receive any payment (there are some circumstances in which the purchaser can export the goods instead of you).
- you sell goods and the payment was to be provided as instalments under a contract that requires the goods to be exported and you exported them before or within 60 days after the day
- on which you received any of the final instalment
- you issue an invoice for the final instalment before you receive any of the final instalment (there are some circumstances in which the purchaser can export the goods instead of you).
- you sell an aircraft or ship that was paid for in instalments under a contract that requires the aircraft or ship to be exported, but only if the purchaser exports it from Australia within 60 days after the earliest day in which at least one of the following occurs
- you receive any of the final instalment of payment for the sale
- you issue an invoice for that final instalment
- you deliver the aircraft or ship to the purchaser or (at the purchaser’s request) to another person.
- you sell an aircraft or ship, but only if the purchaser exports it from Australia under its own power within 60 days after taking physical possession of it
- you sell a ship, but only if
- the ship is a new recreational boat
- you or the purchaser export the ship within 12 months
- the ship is used only for recreational/non-commercial purposes while it is in Australia.
- you sell aircraft or ships stores or spare parts for use, consumption or sale on international flights or voyages, whether or not part of the flight or voyage involves a journey between places in Australia.
Amounts for the:
- sale of goods used in the repair, renovation, modification or treatment of other goods from outside Australia and their destination is outside Australia. The goods must be attached to (or become part of) the other goods or become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the other goods
- repair, renovation, modification or treatment of goods from overseas whose destination is outside Australia after the repair, renovation, modification or treatment
- sale of goods that satisfy certain criteria and are exported by travellers as accompanied baggage.
Do not report at G2:
- GST-free services – unless they relate to the repair, renovation, modification or treatment of goods from overseas and their destination is outside Australia
- freight and insurance to transport the goods outside Australia or other charges imposed outside Australia in the free-on-board value
- international transport of goods or international transport of passengers.
All G2 items should all be reported at G3 if they are GST-free.
Contact us by phone for information on how to apply to extend the 60-day limit for export of your goods, ships or aircraft (12 months for new recreational boats).
- GST-free sales of new recreational boats – suppliers
- GSTR 2002/6 Goods and services tax: exports of goods, items 1 to 4 of the table in Subsection 38-180(1) of the New Tax System (Goods and Services Tax) Act 1999
- GSTR 2003/4 Goods and services tax: stores and spares for international flights and voyages
- GSTR 2005/2 Goods and services tax: supplies of goods and services in the repair, renovation, modification or treatment of goods from outside Australia whose destination is outside Australia
G3 Other GST-free sales
Report at G3 your other GST-free sales as listed in the tables below. If you haven’t already done so, check the list of supplementary activity statement instructions to see if you need any that apply to your sales.
All amounts reported at G3 should also have been reported at G1.
Food retailers may be eligible to use a simplified accounting method to estimate their sales and purchases that are GST-free.
What you do and do not report at G3
Report at G3:
Report all GST-free sales you have made, including:
- basic food, including food for human consumption
- most health and education services
- beverages (including water) for human consumption listed in Schedule 2 of A New Tax System (Goods and Services Tax) Act 1999
- eligible childcare services
- certain sales by eligible charities, gift deductible entities or government schools where specific conditions are satisfied, including sales for a token amount of payment and raffles and bingo
- sales made to a resident of a retirement village by an eligible charity of accommodation in a retirement village or services relating to the supply of that accommodation and the provision of meals
- religious services provided by religious institutions that are integral to practicing that religion
- sales of going concerns – certain conditions must be satisfied including that you and the purchaser have agreed in writing that the sale is of a going concern and you supply all things necessary for the continued operation of the business
- the first sale of precious metal after its refining by or on behalf of the seller, and
- it was refined by a precious metal refiner
- the sale was made to a dealer in precious metal.
- sales of water (except if it is provided in, or transferred into, containers with a capacity of less than 100 litres)
- certain sewerage services including emptying of septic tanks and storm water draining
- international transport and mail that meets certain criteria (contact us by phone for more information)
- certain services in arranging international travel.
Do not report at G3:
- export amounts – show these at G2
- basic food, including food for human consumption that is
- for consumption on the premises from which it is sold (for example, cafes and restaurants)
- hot takeaway food
- a food type listed in Schedule 1 of A New Tax System (Goods and Services Tax) Act 1999 (certain prepared food, confectionery, savoury snacks, bakery products, ice-cream foods and biscuits) or foods that are a combination of foods where at least one food type in the combination is listed in Schedule 1.
- sales of water that is provided in, or transferred into, containers with a capacity of less than 100 litres.