4. Simplifying BAS
Feedback has been received from BAS Agent Association Group members around the communications strategy of Simplifying BAS. The information will be used to shape ATO communications in relation to this matter. Recent information obtained from BASAAG members in an April 2016 out of session will further assist in shaping Simplifying BAS.
Part of the communications strategy is to include messaging around businesses considering engaging with registered tax agents in order to effectively and efficiently understand the GST system and the implementation of the simplified BAS.
A simpler BAS will be the standard reporting option for small businesses. The benefits of these changes include:
- Reduced record keeping costs
- Time saved classifying the GST on your sales and purchases
- Simplified account set up, book keeping and BAS preparation.
Small businesses will benefit from changes to simplify BAS reporting requirements. From 1 July 2017, small businesses with less than $10 million turnover will be able to easily report transactions, and prepare and lodge their BAS.
This concept is being tested with 2,000 small businesses to validate the impacts on small business, BAS/tax agents, software developers and other stakeholders and will provide valuable information on how best to transition all small business to the simpler BAS.
Part of the Budget announcement will take small businesses from 2.2 million GST registered to 2.34 million, an extra 120,000 businesses. The ATO will be looking at the draft legislation in relation to the definition of small business and how that may or may not change. The definition around G1 will also be revisited as it has the potential to create confusion in the taxpayer community and the option to including the BAS or tax agent number on the form is being considered as part of the form redesign.