Goods and services tax (GST) reporting on the business activity statement 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 it.
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 it immediately
Visit the ATO website to view a small video for further information.
Contact us today to learn more.
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.
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