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Total Sales and Income and Other Supplies (Label G1)

The amount shown at G1 is GST-inclusive.

Total Sales and Income and Other Supplies

Total sales includes all the payments and other consideration (including GST) that the entity has received during the current tax period for sales made in the course of its business.

If the entity does not account for GST on a cash basis, include the total amount receivable for sales for which it has been paid in part or in full or for which it has issued invoices in the current tax period.

Only sales you make through the business or other enterprise are taxable sales. Do not include any amounts received for private sales in this field, for example, for the sale of an item of household furniture used only for domestic purposes.

Include amounts paid in the following categories:

  • Goods

  • Services

  • Creating, granting, transferring, assigning or surrendering any right

  • Sale/Lease/Rental Land and Buildings

  • Financial sales (for example, making a loan)

  • On signing agreements (such as, for an entry into, or release from, an obligation to do anything, to refrain from an act, or to tolerate an act or situation. For example, a payment received for agreeing, as part of the sale of the business, not to operate a similar business within a certain area)

  • Market value of barter goods received (that is, the monetary value of payments that are in a non-monetary form (for example, in a barter transaction where you receive goods as payment for a service supplied, include the GST-inclusive market value of the goods))

  • Market value of sales made to associates free or for below market value (that is, where the associate is making the purchase for private or partly private use, or wholly or partly for making input taxed sales)

  • Amounts kept or recovered as a result of a lay-by cancellation

  • Other payments not included above.

Do not include:

  • salary and wages and other employment income

  • pensions, annuities, etcetera

  • amounts received from a hobby

  • trust and partnership distributions

  • dividends

  • capital subscriptions, for example, amounts received by a company for shares issued

  • loans received

  • amounts for supplies made under a voluntary agreement

  • partnership contributions, or

  • interest (except if it is consideration for making financial supplies)

When to Account for Sales

If the business accounts for GST on a cash basis

Include at G1 only the payments that the business has actually received. For example, if the only taxable sales are of goods or services, add up all the payments (including GST) received for these in the current tax period.

Do not include amounts owed to the business for sales made. Include these on the activity statement for the tax period in which payment is received.

If the business does not account for GST on a cash basis

Include at G1 the total amount receivable (including GST) for all the taxable sales made for which the business has been paid in part or in full or for which it has issued invoices in the current tax period.

Progressive or periodic sales

If the business sells goods, services or anything else (for example the right to occupy real property):

  • progressively or for a period, and

  • the consideration is to be provided on a progressive or periodic basis (for example, monthly payments)

Include each payment as you receive it or when it becomes due. Do not include the whole amount payable for the sale when the business receives the first payment or when it issues an invoice.

This rule applies if the business does not use a cash basis of accounting for sales.

Special accounting rules

There are Special rules about the amounts to include at G1.

These rules may differ for the following:

  • hire purchase sales

  • lay-by sales

  • door-to-door sales

  • coin-operated machine sales

  • a sale occurring before the total consideration is known, and

  • a sale made under a conditional contract or a contract subject to a retention clause.

Contact the ATO on 13 24 78 to find out when to account for these sales.

Discounts, Rebates and Other Changes to Consideration

If there is a change to the consideration for any sales included on a previous activity statement, that change may have to be accounted for at either G1 or as an adjustment:

  • If the accounting system records net amounts, show the increased or reduced amount of the business's sales (at G1), or

  • Otherwise, show an adjustment at either G7 or G18, but not both.

For example, in its accounts the business may have chosen to net discounts off its sales or to show them in a separate account. If a volume discount is given in the current tax period in relation to sales included in a previous activity statement, either of the following may be done.

  • Show the reduced amount for sales at G1 of the current activity statement. This option is available only if the accounts show the sales net of discounts. If the change to the consideration relates to export sales, other GST-free sales or input taxed sales, show the reduced amount at G2, G3 or G4.

  • Show the reduction as an adjustment on the activity statement for the tax period in which the discount was given (at either G7 or G18).

About Special Rules at Label G1

There are special rules about the amounts to include at G1 for:

  • non-profit bodies

  • gambling, raffles, gaming and betting

  • insurance premiums

  • sales of interests in real property made under the margin scheme

  • long-term accommodation in commercial residential premises, and

  • intangibles from offshore.

Non-profit bodies

If the entity is a charitable institution, trustee of a charitable fund, deductible gift recipient, sporting or community association, registered club or similar non-profit organisation, include amounts received from all your various activities.

This will include amounts received from:

  • membership fees

  • trading, such as from sales of goods (new and used)

  • providing services to people in need

  • conducting raffles (include only the net proceeds after deducting prizes—refer to Gambling,raffles,gamingandbetting, below)

  • other fundraising activities, and

  • sponsorship

Gambling, raffles, gaming and betting

If gambling sales are made (for example, by conducting casino operations, operating gaming machines in clubs and hotels, conducting lotteries and raffles, taking bets on racing and other events), do not include gross proceeds from these activities. This means that total ticket sales, amounts wagered, bets taken and other amounts collected should not be included.

Include only the net amount after deducting cash prizes paid out from the gross proceeds. If non-cash prizes were paid out, do not deduct the value of these from the gross proceeds. Include the amounts paid to purchase these prizes at G10 or G11.

If the amount calculated as above is a negative amount, that is, the cash prizes paid out are more than the gross proceeds, do not include anything at G1 for the gambling activities. (There may be other amounts to include from sales.) Subtract the amount of this loss away from the gross proceeds from gambling sales on the next activity statement.

Insurance premiums

The GST on premiums for insurance policies sold is 1/11th of the amount of the premium excluding stamp duty, not 1/11th of the total premium. Include at G1 the amount for premiums less the amount of stamp duty.

Sales of interests in real property made under the margin scheme

If a sale has been made of a freehold interest, strata unit or long-term lease under the margin scheme, do not include the amount received or entitled to receive for the sale if the GST was calculated on the sale using the margin scheme.

The margin scheme cannot be used if property was purchased through a taxable sale where GST was calculated without using the margin scheme.

Include only the amount of the margin on the sale. The margin is the sale price (including GST) less the original purchase price. If the original purchase price is more than the sale price, there is no margin and no amount to be included.

If the business holds a freehold interest, strata unit or long-term lease at 1 July 2000, use the value of the interest, unit or lease at that date instead of the original purchase price to calculate the margin on the sale. If the value is more than the sale price, there is no margin and therefore no amount to be included.

If the business registered (or became required to be registered) for GST after 1 July 2000 and the interest in the real property is held on the day that registration takes effect, use the value of the interest on the day of effect of the registration (or the day on which the application was made if earlier) instead of the original purchase price.

Long-term accommodation in commercial residential premises

Commercial residential premises include hotels, motels, inns, hostels, boarding houses, caravan parks, camping grounds and similar premises.

If the business has made a sale of long-term accommodation to any individual for a continuous period of 28 days or more in commercial residential premises, there is a special way of working out the GST payable. Include an amount equal to the GST payable on the sale multiplied by eleven.

Intangibles from offshore (a 'reverse charge' on the recipient)

If you acquire things other than goods or real property for a purpose of an enterprise that your business carries out in Australia, and

  • the sale of the thing to the business is for consideration,

  • the thing is going to be used partly for a private or domestic purpose or partly or solely for making input taxed supplies, and

  • the thing is not connected with Australia.

This is taxable sale and your business is liable to pay GST on the purchase even though it is the recipient in the transaction. Include at G1 the amount paid or payable for the purchase to the extent that the sale is not GST-free or input taxed.

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