From 1 July 2017, ATO is introducing Simpler BAS to make GST bookkeeping and reporting easier.
It will reduce the amount of GST information needed in the Business Activity Statement and make bookkeeping simpler. Simpler BAS will be the default GST reporting method for all small business.
Under Simpler BAS, small business will only need to report total sales and GST on sales and purchases. This will make it simpler and quicker for them to classify transactions when they are doing their bookkeeping, and preparing and lodging their BAS.
Put simply, if a small business purchased items at a supermarket which included food that has GST and food that doesnt, currently they would need to enter two separate bookkeeping transactions to ensure they are accurately capturing these purchases.
Under Simpler BAS, that complexity has been removed. ATO doesn't necessarily need small businesses to tell them the breakup between GST and GST-free, capital and non-capital.
To know more, hear the interview from the audio link provided above.
Jagjit Singh, Community Relations Officer, ATO Source: Supplied
Hear previous Tax Talk segments
ATO Tax Talk March 2017 : Aggressive Tax Planning
