Tax Basics for Your Business - Goods and Services Tax (GST) (Australia)

How do I report GST on the Business Activity Statement?

1. Calculate and report GST quarterly

Choose this method only if you have an accounting system that accurately provides the details of the amount of GST you have to pay and the amount of Input tax credits you are entitled to claim.

You will need to fill out the following labels on you BAS:

G1 - Your total sales for the quarter including GST (you also include her all your GST free sales in case you have any).
You include here amounts received from sales, commissions, fees and charges for services, supplies of goods and services, the monetary value of payments that are in a non-monetary for (barter - including the GST inclusive market value of goods), Do not include her salary and wages, loans received, gifts.

G2 - Your export sales
You need to complete this label only if you have made export sales.

G3 - Your GST free sales
You only complete this label if you have made GST free supplies other than export sales. All amounts included at this label should also been included at label G1.

G10 - Your capital purchases
You need to include here all your capital purchases and capital importations. Capital items include: Plant and equipment, land and buildings, trademarks, business assets you buy for your business (computers, desks, machinery). Business assets can be brand-new or second hand. Trading stock and normal running expenses are not considered to be capital. The amount you show here must include GST.

G11 - Your non-capital purchases
At this label, you should include all amounts you paid for your non-capital business purchases (GST inclusive) such as: phone bills, fuel expenses, rent, stationery, electricity, etc.

1A - GST you have to pay to the Tax Office

1B - GST you are entitled to receive from the Tax Office

Label 9 - final amount of GST you need to pay or you will receive as a refund.

2. Calculate GST quarterly and report annually

You can use this option if your business has an annual turnover below $20,000,000.

When using this option you will need to fill out labels G1, 1A and 1B each quarter on your BAS and labels G2, G3, G10 and G11 on your GST information report you will need to submit once a year.

3. Calculate GST instalment amount

You can use this option only if you fulfil all the following criteria:

• You report GST quarterly
• Your annual turnover is below $2,000,000.
• You are up to date with all your GST obligations.
• You have lodged at least 2 Business activity statements before applying for this option.
• You cannot be in a net refund position (it means the result of your BAS each quarter is an amount you have to pay to the Tax Office, not a refund you are entitled to receive).



Once you choose this option, you will have to use it for the remaining quarters in the financial year.

The Tax Office will offer this option to you automatically on the first BAS you fulfil all the criteria above. If you want to select this option you will need to do it on that first BAS otherwise it will not appear on the following one.

Once you choose this option, you will also need to fill out an annual GST return where you will need to report the correct GST figures for the entire financial year.

4. Calculate and report GST annually

You can use this option only if your annual turnover is below $50,000 and you have registered for GST voluntarily. In this case, you will need to submit only one annual BAS where you will need to report the figures for the entire financial year.

What accounting method should I use for GST purposes?

1. Cash method

You can choose this method if you annual turnover is below $1,000,000.

GST payable

You have to report GST payable in the same tax period that you receive the payment for the supply. It does not matter when you receive the invoice. If you receive only a part of the payment, then the proportion of GST applicable to the part payment is payable in that period.

Input tax credits you can claim

You can claim Input tax credits only after you paid for the acquisition and you have a valid tax invoice.

If you make a part payment, you can only claim the proportion of input tax credit applicable to the part payment providing you hold a tax invoice.

2. Non-cash (accrual) method

GST payable

You have to report GST payable in the earlier of:


• The tax period in which you receive any payment for the supply;
• Or, the tax period in which you issue an invoice for the supply.



The impact to your business is that you may have to account for GST before receiving payment.

I Input tax credits you can claim

You can claim Input tax credits in the earlier of:

• The tax period in which you made any payment for the acquisition;
• Or, the tax period in which you receive an invoice for the acquisition.



However, you must also hold a tax invoice at the time of lodging your BAS.

Changing from non-cash to cash

Changing from cash to non-cash