Simpler BAS Reporting

Simpler BAS reporting – Q&A:

What is Simpler BAS?

From 1 July 2017, Simpler BAS is the default reporting method for all small businesses with a GST turnover of less than $10 million.
Small businesses only need to report:

  • G1 – Total Sales
  • 1A – GST on sales
  • 1B – GST on purchases

The following GST information is no longer required

  • G2 – Export sales
  • G3 – GST-free sales
  • G10 – Capital purchases
  • G11 – Non-capital purchases

Simpler BAS does not affect how other taxes are reported (eg PAYG income tax instalments or PAYG tax withheld), or how often you lodge your BAS.

More details are available on the ATO website

What are the changes in Accounting?

You can select the BAS reporting method of open BAS periods under Change Company Settings … Tax Settings.

Once Simpler BAS reporting method is selected, the following new tax codes will be activated to help you categorise the transactions:

  • GST 10%
  • GST 0%

The old standard GST codes will be deactivated, and you could only use the full set if Standard BAS reporting method is selected:

Once switched to Simpler BAS, Accounting will automatically change the tax codes of associated transactions in the open BAS periods, in the following tabs:

  • Customers
  • Suppliers
  • Items
  • Banking (Bank Transactions, Bank Statement Mapping Rules and Quick Entry Rules)
  • Chart of Accounts

The change of reporting method will only be applied prospectively, which will not affect any previous closed BAS periods.

Even though we’ve changed the coding for you, we still recommend all users to review all transactions in the open BAS period while preparing for the first Simpler BAS report in Accounting.

GST Calculation Worksheet is simplified to report only Total Sales, GST on sales and GST on purchases. The new tax codes are allocated to the relevant fields by default, you could run the report as usual.

How does Accounting populate Simpler BAS?

GST amounts you owe to ATO from Sales:

  • G1 – Total Sales: All sales associated transactions coded with GST 10%, GST 0% and other customised GST types
  • G9/1A – GST on Sales: Sum of GST amount of sales associated transactions coded with GST 10% and other customised GST types

GST amounts you owe the ATO from purchases:

  • G20/1B – GST on purchases: Sum of GST amount of purchases related transactions coded with GST 10% and other customised GST types

Amounts withheld from all payments for this period:

  • W1 – Total Salary, wages and other payments: Movement of Salary and wages account during reporting period
  • W2 – Amounts withheld from salary, wages and other payment: Movement of PAYG withholding account during the reporting period
  • W3 – Amounts withheld from investment distributions where no TFN is quoted: Movement of relevant general ledger account during reporting period
  • W4 – Amounts withheld from payment of invoices where no ABN is quoted: Movement of relevant general ledger account during reporting period

Can I review or amend the previous closed BAS periods, after switching to Simpler BAS?

Yes, you could still review and amend any previous CLOSED BAS periods after switching from Standard BAS to Simpler BAS.

In order to protect integrity and accuracy of your data, previous closed BAS periods could only be reopened if the current reporting method is the same as the previous one. In other words, if you’d like to reopen a CLOSED period, which is reported using Standard BAS method, you’ll need to ensure the current reporting method is also set as Standard BAS.

Start Over BAS period function is also restricted once the BAS reporting method is changed.

Do I have to switch to Simpler BAS? Can I carry on with the Standard BAS reports?

Simpler BAS has become default reporting method for all small businesses. If you have been lodging BAS yourself via the ATO Business portal, we recommend you switch to Simpler BAS report method.

If your bookkeeper or accountant is managing your accounts, he/she could still choose to keep your books using the Standard GST codes. Consult with your bookkeeper or accountant if you’d like to switch to Simpler BAS reporting in Accounting.

How do I prepare my activity statement using the Simpler BAS reporting method?

  • Log into your company.
  • Go to Company … Change Company Settings … Tax Settings, in the BAS reporting system drop down box, select Simpler BAS, and then hit Save.
  • Double check if all bank transactions within this BAS period has been allocated to the right general ledger account, and conduct all necessary reconciliation.
  • Go to Reports … Tax to review the summary and Tax Report of the open period. If this is your first time running a BAS report in this Accounting company, follow the instructions of the wizard to set up your BAS period.
  • Once finalised, click Close Tax Period to lock the changes and roll over to the next BAS period.

More details will be covered in our monthly BAS preparation webinar at the end of each month. You could join the scheduled webinar via the website.