If you’re keeping your books on your own, you can use accounting software to make it easier to record transactions.
Contact the bank where you already have business accounts and ask about GST products and services they offer. Make a habit of transferring GST from your regular account to your GST account on a regular basis. For example, if you own a retail shop or restaurant, you may want to make those transfers on a daily basis.
To use the accounts method, your records must be set up so that you can easily identify GST amounts, and separately record GST-free items. If you are a smaller business and use Simpler BAS reporting or pay installments, you don’t need to choose a reporting method. You will automatically use the accounts method.
If you are a small business with less than $10 million in turnover per year, you can choose either basis. Larger businesses must ask the ATO for permission to use cash basis accounting. If you later want to change your accounting basis, you must contact the ATO. The change won’t take effect until the first day of the next full tax period.
The sales you report at G1 include basically everything, with the exception of dividends or distributions, donations or gifts, and refunds or proceeds from loans. If you’re unsure whether something should be included, consult a tax professional. The export sales you include at G2 are GST-free sales. Show the value provided to Customs and Border Protection, as well as any amount you received for shipping and insurance. GST-free sales reported at G3 include all sales of basic food and beverages. If you are a food retailer, you may be eligible to use a simplified accounting method to estimate GST-free sales.
The worksheet allows you to report income received from the sale or short-term lease of residential property. Subtract this amount from your total sales, along with your export and GST-free sales, to get your taxable income.
Capital purchases and non-capital purchases should be reported separately at G10 and G11. Business purchases, such as inventory bought for resale, should not be included here. You also can’t include insurance premiums related to your business, or salary and wages you pay to your employees.
Include purchases made that relate to making sales of input-taxed sales, such as the sale or short-term lease of real estate.
If you pay using the quarterly installments method, you’ll enter the amount of your installment that was pre-printed at G21 on your BAS. If you’ve had to adjust this figure, you’ll use the amount at G23 instead. If you use the accounts method, use the number shown at 1A in your account records. If you use the calculation worksheet method, this amount is the amount shown at G9.
When you’re satisfied with your BAS, sign and date it so that you can lodge it. Make a copy of it for your records before you lodge it with the ATO.
Individuals and sole traders can also lodge their BAS and pay online through a myGov account that is linked to the ATO. If you submit your BAS online, your next BAS will be delivered to you electronically through the same service.
If you’ve misplaced your envelope, mail your paper forms to Australian Taxation Office, Locked Bag 1936, Albury NSW 2460.
Call 13 72 26 to lodge a “nil BAS. " This line operates 24 hours a day, 7 days a week.
There are separate worksheets for sales, purchases, bad debts, and creditable purposes. There is also a worksheet to provide a summary of all the adjustments you made. You can download the worksheets at https://www. ato. gov. au/uploadedFiles/Content/ITX/downloads/QC17537_Worksheets_js32842_w. pdf. Use the overall adjustment amount you calculated on your worksheet, then multiply it by 11.
The installments are based on the previous year’s tax liability. If your actual tax liability differs from the estimate, you’ll make the adjustments directly on your Business Activity Statement.
If you’ve not yet registered your business for online services, you can call the ATO at 13 28 66. Operators are available between 8:00 a. m. and 6:00 p. m. Monday through Friday.
