The information provided here is for use as a general GST bookkeeping guide only. If you are unsure about any of this content you should seek advice from a tax professional or refer to this guide’s links to more information.
Find out about:
- Taxable sales
- GST-free sales
- Purchases with GST in the price
- Purchases with no GST in the price or where no GST credits can be claimed
- Mixed purchases (both GST and GST-free components)
- Items not reported on the BAS for GST purposes
See also:
More GST bookkeeping and reporting information.
Taxable sales
Taxable sales are sales where GST is payable. When completing your BAS you must report taxable sales at:
G1 Total sales
1A GST on sales
Table 1 below contains a list of taxable sales and their descriptions. You can use this information to identify your taxable sales.
Table 1: Taxable sales
| Transaction | Transaction description | GST tax code | Completing your BAS |
| Goods and services | Sales of goods and services in the course of your business or enterprise (ie trading stock) | GST | G1 Total sales |
| 1A GST on sales | |||
| Assets | Sale of business assets such as office equipment, machinery and motor vehicles, including trade-ins and transfers of ownership | GST | G1 Total sales |
| 1A GST on sales | |||
| Property* | If you are dealing with property (eg you sell, lease or develop) you may have to pay GST on the sale or lease of the property. | GST | G1 Total sales |
| The GST amount on property sales may be calculated on the full value of the sale or on the margin for the sale. You should seek advice , or for more information see GST and property | 1A GST on sales |
* Transactions with common GST mistakes
GST-free sales
GST-free sales are sales where GST is not payable but you may claim GST credits for business inputs.
When completing your BAS you must report GST-free sales at G1 Total sales.
Table 2 below contains a list of GST-free sales and their descriptions. You can use this information to identify your GST-free sales.
Table 2: GST-free sales
* Transactions with common GST mistakes
Purchases with GST in the price
When completing your BAS you must report purchases with GST in the price at 1B GST on purchases.
Table 3 below contains a list of purchases with GST in the price and their descriptions. You can use this information to identify
your purchases with GST in the price.
Table 3: Purchases with GST in the price
| Transaction | Transaction description | GST tax code | Completing your BAS |
| Goods and services | You can generally claim a credit for GST included in the price of any goods and services you buy or import for your GST registered business. Examples include: | GST | 1B GST on purchases |
| capital purchases such as motor vehicles, plant and equipment. Check to ensure capital purchases are allocated to the appropriate capital account. | |||
| inventory purchases (ie trading stock) | |||
| normal running expenses such as leases, equipment rentals, stationery and repairs. | |||
| For more information see Claiming GST credits | |||
| Imported goods (>$1,000) | Imports of most goods where customs value is greater than $1,000 and GST was paid. For more information see GST and imported goods | GST | 1B GST on purchases |
| Second-hand goods from GST registered business OR ≤$300 value* | If you purchase a second-hand item from a GST-registered business (excluding charitable organisations), GST credits may be claimed. | GST | 1B GST on purchases |
| Where second-hand items $300 or less are purchased from a private seller or non-registered business for resale (ie trading stock), GST credits may be claimed even though the price did not include GST. For more information see Purchases for $300 or less | |||
| Business expenses for entertainment subject to fringe benefits tax (FBT)* | You may claim GST credits for entertainment expenses you incur in providing entertainment that is subject to FBT. For more information see FBT and entertainment for small business | GST | 1B GST on purchases |
| If you have elected to use the 50/50 split method for FBT purposes, then GST may be claimed on 50% of the expenses only | |||
| Hire Purchase* | GST may be claimed on all components (including associated fees and the credit component) for hire purchase agreements entered into on or after 1 July 2012. Treat a hire purchase agreement as a standalone purchase in a tax period. Do not treat it as a purchase you make on a progressive or periodic basis. For more information see GST – Hire purchase and leasing | GST | 1B GST on purchases |
| Lease agreements* | Lease agreements are generally subject to GST. How you claim GST credits depends on whether you account for GST on a cash or non-cash (accruals) basis. For more information see GST – Hire purchase and leasing | GST | 1B GST on purchases |
| Domestic business-related travel* | GST credits for business-related domestic travel may be claimed, but must be apportioned between your business and private use. Expenses include: | GST | 1B GST on purchases |
| airfares | |||
| taxi fares | |||
| fares for ride-sourcing services. | |||
| For more information see Business travel expenses |
* Transactions with common GST mistakes
A valid tax invoice for purchases over $82.50 is required to claim a GST credit.
Purchases with no GST in the price or where no GST credits can be claimed
Table 4 below contains a list of purchases with no GST in the price or where no GST credits can be claimed. You can use
this information to identify your purchases with no GST in the price or where no GST credits can be claimed.
Table 4: Purchases with no GST in the price or where no GST credits can be claimed
| Transaction | Transaction description | GST tax code | Completing your BAS |
| GST-free goods and services | Purchases of GST-free goods and services. These include: | ||
| most basic foods and beverages subject to certain exceptions. For more information and a detailed food list see Detailed food list | |||
| most medical, health and care services, medicine and eligible medical aids and appliances, For more information see GST and medical services. | No GST | Not reported on BAS for GST | |
| Check your invoice if in doubt. For more information see GST-free sales | |||
| Purchases from business not registered for GST | Goods and services purchased from a business that is not GST-registered. Generally a business is only required to register for GST if their GST turnover is over $75,000 ($150,000 for not-for-profit organisations), although they may voluntarily register | No GST | Not reported on BAS for GST |
| Life and health insurance | Insurance premiums for life insurance (input taxed) and health insurance (GST-free) | No GST | Not reported on BAS for GST |
| Motor vehicle private sale | Purchase of a motor vehicle from a private seller not registered for GST | No GST | Not reported on BAS for GST |
| Imports ($1,000 or <)* | Imports of goods where the customs value is $1,000 or less and no GST was paid. For more information see GST and imported goods | No GST | Not reported on BAS for GST |
| Business expenses for FBT-exempt employee benefits* | Some employee benefits are exempt from FBT and, even though the price of related business expenses may include GST, GST credits cannot be claimed. Exempt benefits include: | No GST | Not reported on BAS for GST |
| minor benefits <$300 that satisfy five factors | |||
| food or drink provided to current employees on a working day on business premises | |||
| taxi travel to or from an employee’s place of work to an external venue (eg home or restaurant). | |||
| For more information see Minor benefits exemption | |||
| Second-hand goods from charity OR >$300 value* | Purchase of a second-hand item from a charitable organisation is GST-free. | No GST | Not reported on BAS for GST |
| Where second-hand items over $300 are purchased from a private seller or non-registered business for resale (ie trading stock), GST credits may be claimed even though the price did not include GST. However, you must wait until you sell the item you have purchased to claim the GST credit. | |||
| If you are eligible to use the global accounting method, GST credits may be accumulated but you cannot claim these GST credits directly at 1B. Instead, use them to cancel out the GST you would otherwise pay to us on the items you sell. For more information see The global accounting method | |||
| International travel* | International travel, including domestic leg of an overseas trip, is GST-free | No GST | Not reported on BAS for GST |
| Purchases for input- taxed sales * | Even if GST is included in the price, you cannot claim GST credits for purchases you intend to use to make input-taxed supplies (eg those related to providing residential accommodation). You should seek advice from a tax professional, or for more information see When you cannot claim a GST credit | No GST | Not reported on BAS for GST |
| Property* | Where you buy: | No GST | Not reported on BAS for GST |
| an existing residence | |||
| property as a private sale (see ‘Items not reported on the BAS for GST purposes’ for appropriate GST tax code. | |||
| new residential property for rental purposes | |||
| GST-free farmland, property or land under the margin scheme (even if GST is included in the price) | |||
| residential premises such as a room, unit or an apartment to lease to a business that supplies it as hotel accommodation with other facilities. | |||
| You should seek advice from a tax professional, or for more information see Common GST errors and property |
* Transactions with common GST mistakes
Mixed purchases (both GST and GST-free components)
Mixed purchases contain both GST and GST-free components. When completing your BAS you need to report the GST component
in these transactions at 1B GST on purchases. You do not need to report the GST-free component.
Table 5 below contains a list of mixed purchases and their descriptions. You can use this information to identify and correctly
report your mixed purchases for GST purposes.
With mixed purchases there is an option to enter the total amount of an invoice and manually override the GST amount if
it is not 1/11th. This option is subject to accounting software having the functionality to override the GST amount.
Table 5: Mixed purchases (both GST and GST-free components)
| Transaction | Transaction description | GST tax code (GST/No GST OR manual override option) | Completing your BAS | |
| Utility bills: | GST credits may be claimed on: | GST | GST – option to manually override GST amount for entire transaction | 1B GST on purchases |
| electricity | connection fees | |||
| telephone | supply and usage charges | |||
| internet | domestic mobile and landline call usage | |||
| Utility bills: | GST credits cannot be claimed on: | No GST | GST – option to manually override GST amount | Not reported on BAS for GST |
| electricity | interest charged on late payments | |||
| telephone | international and roaming calls | |||
| internet | ||||
| Government rates and water | In some localities a commercial rubbish collection fee may be applied. GST credits may be claimed on this component only | GST | GST – option to manually override GST amount | 1B GST on purchases |
| Government rates and water | Government (council) rates and water supply charges are BAS- exempt. GST credits cannot be claimed on: | No GST | GST – option to manually override GST amount | Not reported on BAS for GST |
| interest charged on late payments | ||||
| ambulance levy (some states and territories only) | ||||
| Mixed private and business use* | For the proportion of business expense related to your business, GST credits may be claimable. | GST | 1B GST on purchases | |
| You must accurately apportion your expenses between private and business use. You need to be able to substantiate your claims – keeping a logbook and accurate records are important | ||||
| Mixed private and business use* | For the proportion of private expense not related to your business, GST credits are not claimable | Out of scope/GST exempt. No option to manually override GST amount. | Not reported on BAS for GST | |
| Purchase motor vehicle from GST- registered dealer or other business* | GST credits may be claimed on the price of the vehicle and insurance components (eg compulsory third party, motor injury or transport accident charge). | GST | GST – option to manually override GST amount | 1B GST on purchases |
| Purchase motor vehicle from GST- registered dealer or other business* | GST credits are not claimable on the following components not subject to GST: | No GST | GST – option to manually override GST amount | Not reported on BAS for GST |
| stamp duty on car | ||||
| stamp duty on motor vehicle insurance | ||||
| government registration fee | ||||
| Motor vehicle registration* | GST credits may be claimed on the insurance component of the registration (eg compulsory third party, motor injury and transport accident charge). | GST | GST – option to manually override GST amount | 1B GST on purchases |
| Motor vehicle registration* | GST credits are not claimable on the following components not subject to GST: | No GST | GST – option to manually override GST amount | Not reported on BAS for GST |
| stamp duty on motor vehicle insurance | ||||
| government registration fee | ||||
| Insurance for business use* | GST credit is claimable on the insurance premium component only. | GST | GST – option to manually override GST amount | 1B GST on purchases |
| Insurance for business use* | GST credits are not claimable on the following components of insurance for business use: | No GST | GST – option to manually override GST amount | Not reported on BAS for GST |
| stamp duty component | ||||
| any settlement payouts as they are not to be reported on your BAS | ||||
| private use portion | ||||
* Transactions with common GST mistakes
Items not reported on the BAS for GST purposes
Table 6: Items not reported on the BAS for GST purposes
| Transaction | Transaction description | GST tax code | Completing your BAS |
| BAS-exempt transactions for GST | Private expenses unrelated to your business* | Out of scope/GST exempt | Not reported on BAS for GST |
| Depreciation | |||
| Dividends received | |||
| Interest paid | |||
| Fines | |||
| Most Australian government taxes | |||
| Bank fees and charges | |||
| Principal payments on finance and loan interest | |||
| Stamp duty | |||
| Sale of your home (main residence) | |||
| Superannuation | |||
| Salary and wages | |||
| Non-deductible entertainment expenses | |||
| Donations | |||
* Transactions with common GST mistakes
More GST bookkeeping and reporting information
Simpler BAS – Find out about Simpler BAS eligibility and where to find support for your transition to Simpler BAS
Issuing tax invoices – Outlines what tax invoices must include
Cash vs non-cash accounting – Your GST accounting method is important when completing a BAS as it affects when different amounts should be reported
Due dates for lodging and paying your BAS
Correcting GST errors – Explains how to correct GST errors you made on an activity statement
Time limits on GST refunds – Time limits apply for claiming outstanding indirect tax refunds and GST credits for purchases
Adjustments – Explains how to increase or decrease the net amount of GST a client pays or is refunded in a reporting period (ie they change labels 1A and 1B)
