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  • Simpler BAS

    Goods and services tax (GST) reporting on the business activity statement (BAS) is getting easier for small business.

    If your GST turnover is less than $10 million, you will report GST using Simpler BAS.

    With Simpler BAS, the only GST information small businesses need to report on their BAS is G1 Total sales, 1A GST on sales and 1B GST on purchases.

    Small businesses no longer need to report G2 Export sales, G3 GST-free sales, G10 Capital purchases and G11 Non-capital purchases.

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

    You still need to keep records, such as invoices, as proof of any claims you make in your BAS and income tax return lodgments.

    Simpler BAS will reduce the complexity of GST bookkeeping and reporting, and in doing so will reduce compliance costs. GST account set up, ongoing bookkeeping, and BAS preparation and lodgment are easier.

    To access the full bookkeeping benefits, your accounting software needs to support Simpler BAS. For users of accounting software, it is easier to classify and code GST transactions and prepare and lodge the BAS.

    There is no change to the paper BAS form. Sections where information is not needed can be left blank.

    If you use a manual bookkeeping system, you may consider switching to digital accounting software to access the full benefits of Simpler BAS.

    Not everyone is eligible for Simpler BAS. Your estimated GST turnover determines your GST reporting method.

    • If your GST turnover is $10 million or more, you will report GST using the full reporting method.
    • If your GST turnover is below $10 million, you will report GST using Simpler BAS.
    • If your GST turnover is below $10 million and you currently report GST using instalments, you will continue to use the instalment method.

    If you rely on a tax professional for BAS assistance, you may consider discussing the changes with them. They will help you take advantage of the bookkeeping and reporting benefits associated with the Simpler BAS

    For more information visit Simpler BAS.

      Last modified: 27 Jun 2017QC 52681