Simpler GST

Goods and services tax (GST) reporting on the business activity statement (BAS) is getting easier for small business.
This is due to a change to GST reporting called Simpler BAS – a partnership between the ATO, software developers, tax professionals and small business associations.
With Simpler BAS, from 1 July 2017 small businesses will have less GST information to report on their BAS. The only GST information required will be:

  • G1 Total sales
  • 1A GST on sales
  • 1B GST on purchases

 

The following GST information will no longer be required:

  • G2 Export sales
  • G3 GST-free sales
  • G10 Capital purchases
  • G11 Non-capital purchases

If your annual GST turnover is less than $10 million, you will be transitioned to Simpler BAS reporting from 1 July 2017.
Simpler BAS will 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 lodgements.
Subject to eligibility, small businesses registering from 19 January 2017 have the option to use Simpler BAS immediately.
Simpler BAS was co-designed and user tested with 2,000 participants throughout 2016–17.
This short video provides an overview of Simpler BAS.

 

Simpler BAS GST bookkeeping

How will Simpler BAS help me with my bookkeeping?
There will be fewer complex GST classification codes, and your bookkeeping will move closer to a simple question of ‘does it have GST or not?’
Purchases with both GST and no GST will be easier to capture as a single bookkeeping entry.
There will be no requirement to split purchases into capital and non- capital for GST.
Set up of accounting software and automation options will be simpler.
While Simpler BAS will become the default GST reporting method for small business, moving to Simpler BAS bookkeeping settings is optional. If your business benefits from detailed GST classifications you may wish to keep using your accounting software in its current format. This is a decision for you and your tax professional.
Am I still required to keep records?
Yes, you still need to keep records such as invoices, as proof of any claims you make in your BAS and income tax return lodgements.

 

Simpler BAS GST bookkeeping guide

The Simpler BAS GST bookkeeping guide is designed to assist small business with the classification of sales and purchases for GST, and to help clarify the most common and confusing GST transactions.
The guide was developed in conjunction with the Institute of Certified Bookkeepers (ICB) and the BAS Agent Association Group (BASAAG).
Check this guide regularly for updates as we will incorporate feedback from our design partners.
Next steps:
View the Simpler BAS GST bookkeeping guide

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