Choosing a GST reporting option (quarterly payers)
Most businesses report and pay their GST quarterly. Your first quarterly business activity statement (BAS) of each financial year allows you to choose the way you will calculate, report and pay for the year.
Your BAS will display the options available to you.
Option 1: Calculate and report GST quarterly
This is available to all quarterly businesses. This option allows you to calculate and report all the GST labels in your BAS and pay your actual GST amounts quarterly.
Option 2: Calculate GST quarterly and report annually
This is available to all businesses with a turnover of less than $20 million. This option allows you to calculate and pay your actual GST amounts quarterly but report only the GST collected and paid and total sales for each quarter.
Amounts for exports, other GST-free sales, capital purchases and non-capital purchases are reported on an Annual GST information report, which can be lodged at the same time as your annual income tax return.
Option 3: Pay GST instalment amount and report annually
This is available to all businesses with a turnover of $2 million or less. This option allows you to pay a pre-determined GST instalment amount quarterly and to report your actual GST information annually. To be eligible, you need to have reported actual GST amounts for at least four months (for example, two quarterly business activity statements) and you can't be in a net refund position.
Most businesses report and pay their GST quarterly and have a choice each year about how they do this. If your business activity statement shows that you have options available, you need to choose one.