From 1 July 2017, small businesses now have less GST information to report on their Business Activity Statement (BAS). Let’s take a look at how BAS reporting is about to get a whole lot simpler.
What is simpler BAS?
As a result of listening to the concerns of small businesses, tax professionals, industry associations and software providers, the Australian Taxation Office (ATO) is working towards reducing GST compliance costs for small businesses.
The ATO is reducing the amount of GST information required for the Business Activity Statement (BAS) to simplify GST bookkeeping and reporting requirements.
What stays on the simpler BAS?
From July 1 2017 you’ll only need to report:
- Total sales
- GST on sales
- GST on purchases
What is removed from BAS?
From July 1 2017 you’ll no longer need to report:
- Export sales
- GST-free sales
- Capital purchases
- Non-capital purchases
Does this apply to my business?
If your business is registered for GST, and you have an annual GST turnover of less than $10 million, you’re eligible for simpler BAS.
Do I still need to keep records?
Yes. You need to keep records, such as invoices, as proof of any claims you make in your BAS lodgements.
How often do I need to report GST?
However frequently you report now (e.g. monthly, quarterly or yearly) is how you’ll continue to report after July 1 2017.
Simple BAS means simpler GST?
Simpler BAS will make it easier for businesses to do their bookkeeping to classify and code GST transactions. To help you gain the most benefit from simpler BAS, QuickBooks Online is introducing simplified GST classification. This simplified method allows you to code your GST transactions as:
- GST
- GST Free
- Out of Scope
These codes are no longer required for GST transactions:
- Export Sales
- Input Tax
- GST on capital purchases
- GST on non-capital purchases
- GST Free capital purchases
- GST Free non-capital purchases
This change will reduce the complexity to run your business day-to-day and enable you to be compliant with BAS reporting requirements.
