Simpler BAS

The term “simpler” refers to the less GST number of figures required to be reported on BAS. Simpler BAS service benefits GST registered small businesses to be focused more on their business affairs as it significantly reduces the time and money to be spent on their BAS returns.

 

Simpler BAS is available from 1 July 2017 to be used by taxpayers, registered tax agents, and tax professionals in Australia. However, only the businesses with the *GST turnover of $10 million or lower are allowed to use the service.

 

*GST Turnover= Gross Business Income – {Output GST+ Exempt Sales (Not business connected or not for payment sales) +Input tax+ foreign sales}

 

How Does It Work?

 

Before Simpler BAS introduction, all GST registered businesses were obliged to fully report all GST components of their BAS including G1, G2, G3, G10, G11, 1A, and 1B.

 

But, the entities who meet Simpler BAS GST turnover threshold ($10,000 per year) are allowed to only fill up G1, 1A, and 1B which are total sales, GST on sales, and GST on purchases respectively.

 

Consequently, all bookkeeping transactions are simplified to have either with GST or without GST transactions.

 

 

 

 

Frequently Asked Questions:

 

  • How about entities paying GST by installment yet meeting Simpler BAS threshold?

 

Answer: If GST is reported in installment, Simpler BAS does not affect your terms, meaning that the installment method must be followed up. However, since the annual GST turnover is still below $10 million, the Simpler BAS can be applied and solely the figures of total sales (G1), GST on sales (1A), GST on purchases (1B), and GST installment (1H) must be reported in BAS.

 

 

  • How Can Simpler BAS be used?

 

Answer: From the service commencement date, all online BAS reports on ATO website will be adjusted with the Simpler BAS service according to the taxpayer total GST turnover.

 

In case GST reports are generated by accounting software, the provider will guide the taxpayer how to include the Simpler BAS into your software. But, some accounting software which definitely supports the Simpler BAS service can be found on the software partner of ATO (ABSIA).

 

Caution:

Simpler BAS does not mean that the documents are not to be maintained. In the contrary, preserving the supporting documents and pieces of evidence for all the GST figures, either using the service or not, is obligatory and the taxpayer must present them if asked by ATO.