From 1 July 2017, Simpler BAS will be the default GST reporting method for small businesses with a GST turnover of less than $10 million. What does this mean? Quite simply, the ATO is reducing the amount of information needed for the business activity statement (BAS) to simplify GST reporting.
You will only need to report:
o Total sales
o GST on sales
o GST on purchases
This will not change your reporting cycle, record keeping requirements, or how you report other taxes on your BAS.
Simpler BAS will:
o make it easier for classifying transactions
o reduce the time spent on form-filling and making changes that don’t impact the final GST amount.
The ATO will automatically transition eligible small business’ GST reporting methods to Simpler BAS from 1 July 2017. To help the transition, they will email us as your BAS Agent to advise if your business will be.
Small businesses can choose whether to change their GST bookkeeping software settings to reduce the number of GST tax classification codes.
If you would like further training on what these changes mean for your business and require assistance with making the changes to your Chart of Accounts, contact your account manager talk to your https://solde.com.au/contact-us/. We would be happy to help you decide whether reduced or detailed GST tax code settings are best for your business bookkeeping needs.