GST or Not Included
The ATO has simplified the GST reporting system to make it simpler for a business to conduct its trading with less complexity in applying the GST law.
To trade in Australia a business must:
- Obtain an ABN.
- Decide whether to register for GST, (compulsory once your turnover is more than $75,000pa for a business, or $150,000 for Not-for-Profit entities. Transport providers must register regardless of turnover).
- Understand what sales the business makes and how GST is to be applied to those sales.
- Understand what GST the business pays on its expenses and know how much GST it is allowed to claim back.
Tax Codes and Reporting Fields
It will no longer be required to report export sales, GST free sales, capital purchases or non-capital purchases on the BAS.
You will still need to report PAYG Withholding, PAYG Instalments, Wine Equalisation Tax, Fringe Benefits Tax, Fuel Tax Credits and Luxury Car Tax if required for your business.
Who Does it Apply to?
Under the new “Small Business” definition, any business with turnover below $10m will lodge the new Simpler BAS.
When?
Simpler BAS system starts on 1 July 2017.
