[The ATO has] listened to the concerns of small businesses, tax professionals, industry associations and software providers, and are working towards reducing GST compliance costs for small businesses.
[The ATO] are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements.
A simpler BAS will give small businesses significant time and cost savings by simplifying account set up, GST bookkeeping and BAS preparation. Businesses will be able to more easily classify transactions and prepare and lodge their BAS.
From 1 July 2017, small businesses will only need to report the following GST information on their BAS:
The requirement to report Export sales (G2), other GST free sales (G3), Capital purchases (G10) and Non-capital purchases (G11) will be removed.
A simpler BAS will support greater use of existing automation functions and potential digital solutions as they evolve.
For more information and to watch the ATO's 'Simpler BAS' video click here.
[The ATO] are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements.
A simpler BAS will give small businesses significant time and cost savings by simplifying account set up, GST bookkeeping and BAS preparation. Businesses will be able to more easily classify transactions and prepare and lodge their BAS.
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)
- 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.
A simpler BAS will support greater use of existing automation functions and potential digital solutions as they evolve.
For more information and to watch the ATO's 'Simpler BAS' video click here.
Our Comments
Although there are fewer areas to report on for your BASes it is still necessary to keep complete records for income tax purposes and to capture the required GST figures.
Interestingly the BAS figures will no longer be used for benchmarking purposes which is good news given that they were never an accurate representation of the businesses trading.
Interestingly the BAS figures will no longer be used for benchmarking purposes which is good news given that they were never an accurate representation of the businesses trading.
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