Business turnover
For complete instructions obtain a copy of 'BAS Basics' from the ATO.
Businesses with turnover of $2 million or less annually
GST Options
These businesses have three options by which to report and pay GST:
To complete the full activity statement, quarterly or monthly.
To use the GST Actuals method by completing:
At least GST amounts G1, 1A or 1B quarterly and an Annual GST Information Statement showing G1, G2, G3, G10 and G11, OR
All GST amounts G1, 1A, 1B, G2, G3, G10 and G11 quarterly and then there is no need to complete an Annual GST Information Statement.To use the GST Instalment method
The ATO informs those eligible to use this option of the instalment estimate that they need to report and pay quarterly. In addition to this, they need to lodge an Annual GST return showing G1, G2, G3, G10 and G11.
Annual BAS and IAS Forms to be lodged via ELS.
PAYG options
There are two PAYG options, by which to report and pay. These are:
The current method where payments are made quarterly or annually, based on calculations using the Income tax rate, or
PAYG Instalment method
This method is for taxpayers eligible to make PAYG instalments. The amounts are also advised by the ATO. Taxpayers need to report and pay their PAYG instalment estimate for quarters 3 and 4 of the income year in which they receive the advice from the ATO and all quarters thereafter. For more information, refer to PAYG options.
The Instalment Method:
How does the ATO calculate the amount quoted as the quarterly GST instalment?
The ATO calculates the instalment for eligible quarterly lodgers on Annual turnover. For this purpose annual turnover is your net GST amount excluding GST but including any input taxed supplies.
How do I calculate my quarterly GST liability and my annual reconciliation?
Calculating you GST liabilities depends on the reporting method chosen.
If reporting by the GST Actuals method, either the Calculation Sheet or Accounts methods still apply.
If reporting by the Instalment Method, the quarterly GST liability is advised by the ATO and is not calculated. On the Annual GST return, you need to report actual amounts of GST collected, GST paid, G1, G2, G3, G10 and G11. This may be calculated using the Calculation Sheet or Accounts methods.
What is included on the Annual GST Return?
If you have chosen to pay the GST Instalment Amount, you need to complete an Annual GST Return itemising actual GST collected and GST paid. Where the GST Instalment includes amounts for WET and LCT, itemise the actuals at labels G1, G2, G3, G10 and G11.
Businesses with annual turnover from $2 - $20 million
GST options
There are two GST options by which to report and pay by. These are:
The method they currently use, that is a full activity statement quarterly or monthly.
GST Actuals method
This requires at least actual GST collected and paid (1A and 1B) and sales turnover (G1) quarterly AND an Annual GST Information Statement showing amounts for exports sales (G2), GST-free sales (G3), capital purchases (G10) and other purchases (G11), OR
All GST amounts G1, 1A, 1B, G2, G3, G10 and G11 quarterly AND no Annual GST Information Statement.
PAYG options
There are two PAYG options, by which to report and pay. These are:
The current method where payments are made quarterly or annually, based on calculations using the Income tax rate, or
PAYG Instalment method
Where the taxpayer is eligible to make PAYG instalments, these amounts are also advised by the ATO. Taxpayers need to report and pay their PAYG instalment estimate for quarters 3 and 4 of the income year in which they receive advice from the ATO and all quarters thereafter. Refer to Annual instalment activity statement (GI)#AboutPAYGInstalments.
The Instalment Method:
How is the quarterly GST liability calculated?
The Accounts Method or the Calculation Method still apply when calculating GST liability.
For those using the calculation sheet method, labels G1 to G20 are provided as a worksheet at the end of the Activity Statement. This is called the GST Calculation worksheet. This worksheet is not lodged with the ATO.
When is an annual GST Information Statement required?
If you have chosen to report and pay the GST Actuals quarterly, and the actual amounts at labels G1, G2, G3, G10 or G11 are incomplete for any quarter then you will need to lodge an annual GST Information Statement.
Businesses with annual turnover over $20 million
Businesses with over $20 million annual turnover report and pay monthly. There is no change to their actual GST calculation.
What are the advantages to monthly reporting?
New streamlined form showing G1 and 1A and 1B
Complete GST information monthly but report only:
G2 Export sales
G3 Other GST-free sales
G10 Capital purchases
G11 Non-capital purchases (including any GST)
no Annual GST Return or GST Information Statement for G2, G3, G10 and G11
lodgment and payment due on the 21st of each month following the tax period to which the statement relates.
BAS—Variations to Instalments
You can vary the GST instalment amount provided by the ATO.
Variations are made by doing your own estimate of the annual GST liability and working out an adjusted GST instalment amount. To be acceptable, the adjusted instalment amount must ensure that by the end of the:
1st quarter, 25% of the estimated annual amount is paid;
2nd quarter, 50% of the estimated annual amount is paid;
3rd quarter, 75% of the estimated annual amount is paid; and
4th quarter, 100% of the estimated annual amount is paid.
The estimate needs to be at least 85% of the actual GST payable for the year to avoid the variation penalties.
Penalties
When do variation penalties apply?
If you use the GST instalment amount provided by the ATO and after completing the annual GST return it is apparent that you have paid less then 85% of your actual GST payable for the year, you are NOT penalised.
If you vary the GST instalment amount provided and as a result, you pay less than 85% of your actual GST payable for the year, variation penalties may be imposed.
What if the Annual GST return or Information Report is not lodged?
If you fail to lodge your Annual GST Return or your Annual GST Information Report you will be penalised the same way as you would for a late BAS submission.
What if the Annual GST Return amount is not paid by the due date?
If you fail to pay the difference between your actual net GST and your GST instalments by the due date the General Interest Charge is imposed.
Refunds
How are refunds calculated and administered?
If you are using the Instalments method, a refund is only received after the Annual GST Return is lodged. A refund is paid if the actual GST payable for the year is less than the total GST instalments paid.
If you are using the GST Actuals method, refunds are calculated the same as previously but the GST calculations are not on the form.