All business registered for GST use the business activity statement (BAS) to complete their GST returns. Your reporting and payment period is shown on your BAS and will be monthly, quarterly or annually.
You use a BAS to report and pay the GST your business has collected, and to claim GST credits.
Choosing a GST Reporting Option (quarterly payers):
Most businesses report and pay their GST quarterly. Your first quarterly business activity statement (BAS) of each financial year allows you to choose the way you will calculate, report and pay for the year.
Your BAS will display the options available to you.
Option 1: Calculate and report GST quarterly
This is available to all quarterly businesses. This option allows you to calculate and report all the GST labels in your BAS and pay your actual GST amounts quarterly.
Option 2: Calculate GST quarterly and report annually
This is available to all businesses with a turnover of less than $20 million. This option allows you to calculate and pay your actual GST amounts quarterly but report only the GST collected and paid and total sales for each quarter.
Amounts for exports, other GST-free sales, capital purchases and non-capital purchases are reported on an Annual GST information report, which can be lodged at the same time as your annual income tax return.
Option 3: Pay GST instalment amount and report annually
This is available to all businesses with a turnover of $2 million or less. This option allows you to pay a pre-determined GST instalment amount quarterly and to report your actual GST information annually. To be eligible, you need to have reported actual GST amounts for at least four months (for example, two quarterly business activity statements) and you can't be in a net refund position.
Completing the GST Labels on your BAS:
You must complete the goods and services (GST) tax section of your business activity statement (BAS) if your business is registered for GST.
The GST labels you complete depend on the GST reporting option you have chosen:
G1 - Total sales
Total sales to report at G1 means all of the following:
your GST-free sales
your input-taxed sales
your taxable sales
Most businesses can choose whether to include or exclude the GST component when reporting their taxable sales - select the yes or no at label G1.
If you have no sales for the reporting period, enter '0' at G1.
G2 - Export sales
Export sales to report at G2 are:
The free on-board value of exported goods that meet the GST-free export rules payments for the repairs of goods from overseas that are to be exported.
Payments for goods used in the repair of goods from overseas that are to be exported.
All amounts reported at G2 should also have been reported at G1.
You do not need to report at G2 any of the following:
Amounts for GST-free services, unless they relate to the repair, renovation, modification or treatment of goods from overseas whose destination is outside Australia.
Amounts for freight and insurance for transport of the goods outside Australia, or other charges imposed outside Australia in the free on-board value.
Amounts for international transport of goods or international transport of passengers.
If these items are GST-free, they should be reported at G3.
G3 - Other GST-free sales
GST-free sales include things such as:
Most basic foods
Health and education services
Certain childcare services
Report at G3 all GST-free sales (other than export amounts shown at G2) that you've made.
Amounts reported at G3 should also have been reported at G1.
G10 - Capital purchases
Capital purchases include things such as:
Land and buildings
G11 - Non-capital purchases
Non-capital purchases include trading stock and normal running expenses, such as:
Stationery and repairs
You need to separately report your capital and non-capital purchases at G10 and G11. If you don't record capital and non-capital purchases separately and your GST turnover is expected to be less than $1 million, then you only need to record capital items costing more than $1,000 at G10 and non-capital items costing $1,000 or less at G11.
G21-G24 - (Option 3: pay GST instalment amount)
If you have chosen option 3 to report your GST (pay instalment amount quarterly and report annually), the pre-determined GST instalment amount is shown at G21. Simply copy this to 1A.
If you think that the total of your advised instalment amounts will be more (or less) than your actual GST liability for the year, you can vary your instalment amount.
To vary your instalment amount you need to:
Calculate your estimated annual GST liability and enter this at G22
Calculate your instalment amount for the quarter - this depends on the number of quarters remaining in the year and the amount of instalments you've already paid; enter this amount at G23
Indicate your reason for varying by entering the appropriate reason code at G24
1A - GST on sales or GST instalment
Report at 1A the total amount of GST (including any relevant adjustments) you're liable to pay us for the reporting period.
If you have no GST on sales or adjustments for the reporting period, enter '0'.
If you report and pay GST quarterly using option 3 (the instalments option), report at 1Ayour GST instalment amount displayed at G21. If you've varied this amount, take the figure from G23 and report this amount at 1A.
If you use option 3, you must also lodge an Annual GST Return at the end of the financial year and account for any difference between the following:
Your total GST instalments for the year
Your actual GST liability
In your Annual GST Return, report the total amount of GST on your sales plus any relevant adjustments at 1A.
1B - GST on purchases
You report at 1B the total amount of GST credits (including any relevant adjustments) you're eligible to claim from us.
If you have no GST on purchases or adjustments for the reporting period, enter '0'.
If you use option 3 (the instalments option), you won't need to complete 1B on your quarterly BAS.
However, you must complete this box on your Annual GST Return at the end of the financial year.
Your GST net amount is GST on sales (label 1A) + WET (label 1C) + LCT (label 1E) minus GST on purchases (label 1B) + WET refundable (label 1D) + LCT refundable (label 1F).
If you are a GST instalment payer, the total GST instalments paid by you (label 1H) are taken into account when calculating your GST net amount.
Setting up Allocation Columns to match the BAS:
Cashflow Manager has been designed with a unique column format that enables the GST section of the Business Activity Statement to report automatically saving you hours of time in reconciling your records to lodge your return.
The following GST Category Checklist will help you set up your columns to ensure your records are correct.
This document provides a simple checklist for most businesses that are not in the business of making financial supplies. Special rules may apply to some businesses.
Cashflow Manager Pty Ltd expressly disclaims any liability from use of this information. For more detailed advice and information, please refer to the Business Activity Statement Instructions issued by the Australian Taxation Office and seek the services of a financial advisor.