From 1 July 2017, a Simpler BAS is available for reporting to the ATO for small businesses with a GST turnover of less than $10 million.
The ATO will have contacted you to let you know if you are eligible and you will be automatically transitioned to this. If you are unsure please contact us.
A simpler BAS means they are fewer fields to complete on your BAS.
Small businesses now only need to report on:
- G1 Total sales
- 1A GST on sales
- 1B GST on purchases
The following GST information is no longer required:
- G2 Export sales
- G3 GST-free sales
- G10 Capital purchases
- G11 Non-capital purchases
These tax codes no longer need to be used.
Other taxes on the BAS still need to be reported ie PAYG income tax instalments or PAYG tax withheld), and you still have to lodge monthly or quarterly.
The ATO states ” that the simpler BAS reduces the complexity of GST bookkeeping and reporting, and in doing so reduces compliance costs. GST account set-up, ongoing bookkeeping, and BAS preparation and lodgment is simpler.”
The reality is that while there are now fewer fields to complete on the BAS form and a few tax codes have been deleted it still means your accounts have to be reported in the same way there are still the same number of transactions to report on albeit with fewer tax codes.
You still need to keep the same documentation.
Software
Your existing software has been updated for these changes and you will be asked to change to the Simpler BAS reporting method – most of our clients use Xero or MYOB – and they have incorporated this update into their software. Please ensure your software or version complies.
Always back up your software prior to any major change .
This short ATO video provides an overview of Simpler BAS.