Insight Accounting Pty Ltd is a CPA Practice

Beaconsfield (03) 9707 0555

Cranbourne (03) 5995 2700

Pakenham (03) 5940 4555

The ATO’s “GST-light” offer for new small businesses

The ATO says that it has “listened to the concerns of small businesses, tax professionals, industry associations and software providers”, and is working towards reducing GST compliance costs for small businesses.

“We are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements,” it says. “A simpler BAS will give small businesses 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.

It has therefore announced that, from January 19, 2017, newly registered small businesses will be provided with the option to report less GST information on a simpler BAS.

To take advantage of this option, your small business clients that register for GST from January 19 will need to do the following:

– If a quarterly GST reporting cycle is selected when registering for GST, they will need to select “Option 2: Calculate GST quarterly and report annually” on their first BAS. The ATO says it will not be seeking the additional GST information or lodgment of the “annual GST information report”. This will provide your small business client with a simpler BAS reporting solution.

– If a monthly GST reporting cycle is selected at registration, you can insert “0” at G2, G3, G10 and G11 on your client’s BAS.

– If an annual GST reporting cycle is selected, you can leave G2, G3, G10 and G11 blank on your client’s annual GST return.

Note also that from July 1, 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 also be removed.

“We have commenced testing the proposed changes with small businesses, tax professionals and software developers to ensure we get it right,” the ATO says. “The Phase 1 Alpha testing report outlines the findings and recommendations from the user testing.”

You can view the full testing report on the simpler BAS software developer webpage.

 

 

DISCLAIMER: All information provided in this publication is of a general nature only and is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. No person should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor. To the fullest extent permitted by law, no person involved in producing, distributing or providing the information in this publication (including Taxpayers Australia Incorporated, each of its directors, councillors, employees and contractors and the editors or authors of the information) will be liable in any way for any loss or damage suffered by any person through the use of or access to this information. The Copyright is owned exclusively by Taxpayers Australia Ltd (ABN 96 075 950 284).

Insight Accounting Pty Ltd is a CPA Practice

Limited Liability by a scheme approved under Professional Standards Legislation

© Copyright 2014 - Insight Accounting | Accountant Cranbourne, Beaconsfield, Pakenham, Berwick, Narre Warren, Officer, Tax Returns South East Melbourne | Disclaimer | Privacy Policy | Contact