If you make financial supplies, you need to report information about those supplies on your BAS, including the amounts you:
- earned from the sales of financial supplies
- paid, or were liable to pay, from purchases you used to make financial supplies.
A supply you make is a financial supply only if it is listed in the GST regulations. Examples of financial supplies include:
- lending or borrowing money
- providing your customers with goods on credit for a fee
- creating, maintaining and closing your customer's bank account
- life insurance
- dealing in debt, equity, unit trusts, partnership interests or futures contracts.
You can make financial supplies even if you are not a financial institution. For example, even though a department store is not a financial institution, it can provide customers with credit and charge interest on that credit. This is an input-taxed financial supply.