From 1 July 2017, the Australian Taxation Office (ATO) is reducing the amount of information required for the business activity statement (BAS) to simplify GST reporting. Simpler BAS will be the default GST reporting method for Small Businesses Entities (SBE’s) with a GST turnover of less than $10 million. From 1 July 2017, SBE’s will only need to report:
– Total sales
– GST on sales
– GST on purchases.
The following GST information is no longer required:
– Export sales
– GST-free sales
– Capital purchases
– Non-capital purchases.
This however, will not change their reporting cycle, record keeping requirements, or how they report other taxes on their BAS.
The ATO’s goal for Simpler BAS is to make it easier to classify transactions, make it easier to lodge your BAS and to reduce the time spent on form-filling and making changes that don’t impact the final GST amount. Simpler BAS will reduce the complexity of GST bookkeeping and reporting, and in doing so will reduce compliance costs and make GST account set-up, ongoing bookkeeping, and BAS preparation and lodgment simpler.
From 1 July 2017 you will no longer elect your GST reporting method including GST instalments, on your BAS. Your GST turnover will determine your GST reporting method:
– If your GST turnover is $10 million or more, you report GST using the Full reporting method.
– If your GST turnover is less than $10 million, you report GST using the Simpler BAS reporting method.
– If your GST turnover is less than $10 million and you currently use the GST instalment method, you will generally continue to use it. If the instalment method is available to you, a GST instalment amount will show on your BAS.
The GST turnover figure used to determine the GST reporting method to be used will be obtained from ATO records and will be rolled over at the end of financial year based on your current year’s reported GST turnover.
The ATO will automatically transition eligible SBE’s GST reporting methods to Simpler BAS from 1 July 2017. You don’t need to do anything to access Simpler BAS reporting. If you lodge online and are eligible for Simpler BAS, the ATO will automatically send you a BAS requiring less GST information. To access the full GST bookkeeping benefits of Simpler BAS, SBE’s may be able to also look at changing their GST bookkeeping software settings to reduce the number of GST tax classification codes.
Source: Australian Taxation Office
Contact Solve Business Accountants located on the Gold Coast, Qld Australia if you need help with your business tax.