In this edition:

  Welcome

  Car and travel deductions

  Simpler BAS

  Business structures and asset protection

  The Alternative Board Sydney Hills

From 1^st July 2017, small businesses with a GST turnover of less than $10 million no longer need to report the following items on their BAS:

• G2 Export Sales
• G3 GST-Free Sales
• G10 Capital Purchase
• G1 Non-Capital Purchase

Small businesses only need to report:

• G1 Total Sales
• 1A GST on Sales
• 1B GST on Purchases
• PAYG Income Tax Instalment (if applicable)
• Wages and PAYG Tax Withheld (if applicable)

You will still need to keep records as proof of any claims you make.

Simpler BAS does not affect how often you lodge your BAS, i.e.: monthly; quarterly or yearly.

Simpler BAS reduces the complexity of GST bookkeeping and reporting and compliance costs. GST account set-up, ongoing bookkeeping, BAS preparation and lodgement are simpler.

It is now easier for businesses to do their bookkeeping for transactions that have both GST taxable and non-taxable items.

For users of accounting software, it is easier to classify and code GST transactions and prepare and lodge the BAS.

• There are fewer complex GST classification codes, and your bookkeeping moves closer to a simple question of 'does it have GST or not?'
• Purchases with both GST taxable and non-taxable items are easier to capture as a single bookkeeping entry.
• There is no requirement to split purchases into capital and non-capital for GST reporting.
• Set-up of accounting software and automation options is simpler

From 1 July 2017 you no longer elect your GST reporting method, including GST instalments, on your BAS. Your GST turnover determines your GST reporting method.

• If your GST turnover is $10 million or more, you report GST using the Full reporting method.
• If your GST turnover is less than $10 million, you report GST using the Simpler BAS reporting method.
• If your GST turnover is less than $10 million and you currently use the GST instalment method, you generally continue to use it – if the instalment method is available to you, a GST instalment amount will show on your BAS.

Please contact our office for more information.