If you are a new small business, you can start using the simpler BAS ahead of the full implementation date of 1 July 2017.
To start reporting GST using the simpler BAS, you need to have:
Started your business and registered for GST on or after 19 January 2017, and
- An annual turnover of less than $2 million.
With the simpler BAS, you only need to report:
GST on sales (GST collected).
- GST on purchases (GST entitled).
- Total sales.
Why not take advantage of this option and simplify your GST bookkeeping and reporting before simpler BAS becomes the default GST reporting method for all small businesses.
Simpler BAS reporting for all small businesses will officially kick in on 1 July 2017
As reported recently in AccountantsDaily, following intense industry lobbying, the ATO has made progress in testing simpler business activity statement (BAS) reporting for small businesses.
As part of the federal budget released in May 2016, the Commonwealth Government announced that simpler BAS would be rolled out to all small business from 1 July 2017.
“Small business, software developers, tax professionals and industry professionals have raised concerns that the complexity of the BAS places an unnecessary burden on small business and increases their GST compliance costs,” an ATO spokesperson told AccountantsDaily.
“The questions on the BAS are being removed because small businesses have told us additional questions and classifications are difficult, complex and small businesses find it hard to report with complete accuracy. A simpler BAS will give small businesses time and cost savings by simplifying account set-up, reducing GST bookkeeping and reducing BAS preparation time. Small businesses will be able to more easily classify transactions and prepare and lodge their BAS.”