With the massive changes to the superannuation regime occurring on 1 July 2017, many may have missed another tax reform that will be applying to small business from that date which should help cut the administration time and costs in preparing their business activity statement (BAS).
The ATO has introduced a system called “Simpler BAS” which will apply to all businesses with a turnover less than $10 million. Under this system, businesses will have less GST information to report on their BAS. Although the frequency of the BAS reporting will be unchanged and there is no change to the reporting of the other taxes (i.e. PAYG income tax instalments, PAYG withholding), there will be less information required to be reported for GST. From 1 July 2017, businesses who qualify for Simpler BAS will not be required to report: –
- G2 – Export Sales
- G3 – GST Free Sales
- G10 – Capital Purchases
- G11 – Non-capital Purchases
The good news is for eligible businesses there is nothing that needs to be done to elect to use this system. The ATO will automatically register applicable businesses to the system and update their BAS accordingly.
If you have any queries or questions regarding this change, please do not hesitate to contact us.