Information current as of 16 June 2017
The ATO has been working with software developers, tax professionals and small business associations to make the reporting of BAS simpler for small business.
What are the changes with the introduction of Simpler BAS ?
The ATO recently announced that from 1 July 2017, small businesses will only need to report the following GST information on their BAS:
- GST on sales (1A)
- GST on purchases (1B), and
- Total sales (G1).
The requirement to report Export sales (G2), other GST free sales (G3), Capital purchases (G10) and Non-capital purchases (G11) will be removed.
What are the changes to my reporting method?
Your GST reporting method is determined by your estimated annual GST turnover.
- If your annual GST turnover is $10 million or more, you will report GST using the full reporting method
- If your annual GST turnover is below $10 million, you will report GST using Simpler BAS
- If your annual GST turnover is below $10 million and you currently report GST using instalments, you will continue to use the instalment method
Simpler BAS will not affect how other taxes are reported (e.g. PAYG income tax instalments or PAYG tax withheld) or how often you submit your BAS. Your record keeping requirements will also remain unchanged.
How does Simpler BAS Impact Agrimaster?
There is no impact on the Agrimaster software because it already produces the full BAS version which provides you with the three components required by the Simpler BAS.
What are the Potential Benefits of Simpler BAS?
Because the complexity of GST bookkeeping and reporting will be reduced, your compliance costs may decrease. GST account set up, ongoing bookkeeping, and BAS preparation and lodgement will be simpler. Please refer to your accountant/bookkeeper to discuss the changes and potential benefits.
For full details on Simpler BAS, visit the ATO website.