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

Tip 1 – Merge Tax Codes

To merge two tax or GST codes to remove any unused codes or codes you no longer need particularly handy if you are moving to Simpler BAS (Australia). You can only combine tax or GST codes that:

  • use the same rate
  • have the same linked accounts.

Tip 2 – Combine Tax Codes

When you combine codes, you’ll select a code to delete, and which code to move this history to. All cards, accounts and other records update to the new code. Make a backup before combining tax or GST codes.

  1. Go to the Lists menu and choose Tax Codes (Australia) or GST Codes (New Zealand).
  2. Click Combine Tax Codes (Australia) or Combine GST Codes (New Zealand).
  3. Select the tax or GST code you want to keep from the Move transaction history to list. This is the code the deleted code’s history moves to.
  4. Select the code to delete from the Delete this tax code (Australia) or Delete this GST code (New Zealand) list.
  5. Click Combine Tax Codes (Australia) or Combine GST Codes (New Zealand). A confirmation window appears.
  6. Click OK.

That’s it, done.  You have simplified your tax codes.

Note – 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.

Visit the ATO website to view a small video for further information.

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/Simpler-BAS/

The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.