GST information

BUSINESS ACTIVITY SHEET (BAS)

Note that this information is not to be relied on for your tax return - refer to your accountant for accurate information for your purposes... Information on BAS requirements is available at http: or or www.ato.gov.au go to Businesses, Lodge a Business Activity Statement for details and more details for each of the items listed here

The system defaults in the GST code on transactions for you based on the setting for the GL Account - see Chart of Accounts.  

• Some transactions are GST free and this should be set on the relevant accounts 
  • Motor vehicle registrations
  • Bank Charges
  • ASIC fees
  • Paypal Transaction Fees
  • Google Adwords
  • Interest and Directors fees and drawings 
  • and others - refer to your accountant

G1:
This is the total sales (regardless of whether they are including or excluding GST) and income and other supplies.

• If you are on an accrual method, the total = the total value invoiced out for the period, regardless of whether the amount has been paid or not.
• If you are on a cash method, the total will include only invoices which have been paid this GST period regardless of whether the invoice happened this month or period or at any time in the past, unless the invoice was pre July 2000.

  G2:

  This is exports for invoicing or adjustments. Please refer to the Distinction between cash and accrual method outlined in G1.

  G3:

  This is the total of GST free sales for sales of items such as fresh food etc, invoiced to a customer.

  G4:

  This is

  G5:

  This is the total of G2 + G3 + G4, which is the total value where GST has not been applied to the sale.

  G6:

  This equals G1 – G5, which is the total of sales where GST has been applied.

  G7:

  This is any manual adjustment made to the sales figures to account for errors in previous periods or sales. G7 is the gross value including GST of any adjustments

  G8:

  This is G6 + G7 and is the total of sales revenue including adjustments where GST has been applied.

  G9:

  This is G8 divided by 11, which is the value of GST that has been charged during this period. This figure is transferred to 1A on the front of your BAS.

  G10:

  This is the total of all purchases that are type 3 (capital acquisitions) and have been entered into the computer via purchase or purchase order or cheque entry. They won’t be included if they were made by journal entry. Please refer to G1 regarding the method of GST being cash or accrual.

  G11:

  This is the total of purchases that are Type 1 GST (except capital acquisitions) which have been entered via a purchase or purchase order or cheque entry. Not included if made by journal entry.

  G12:

  This is G10 + G11, and is the total of your GST applicable purchases.

  G13:

  not used.

  G14:

  This is purchases that are exempt of GST (eg: fresh food, medical supplies etc). If you have used cheque entries to process wages, superannuation etc, then it will incorrectly appear in this section of the BAS which is why journal entries should be used to process wages etc.

  G15:

  This is the estimated private use of acquisitions which can’t be claimed as a GST input tax, and therefore you can’t get GST credit for these purchases. This has to be manually entered the user and will not be updated by AMWin.

  G16:

  This is G13 + G14 + G15 which is the total of non-creditable acquisitions where tax credit can not be claimed.

  G17:

  This is G12 – G16, which is the total of acquisitions where GST credit can be claimed.

  G18:

  This is a manual adjustment the user makes for the gross value of GST of any purchases for a previous period or purchases that haven’t been entered through AMWin. This figure can be negative if a negative sign is placed in front of it.

  G19:

  This is G17 + G18, which is the total acquisitions after adjustments whereby GST credit can be claimed.

  G20:

  This is G19 divided by 11. This is the GST credit calculated from your purchases and expenses, where a GST credit can be claimed. G20 is transferred to 1B on the front of the BAS.

  W1:

  This is the total of salary, wages and other Pay As You Go (PAYG) payments. As SIM users over the last 14 years have had different accounts setup for wages and some users have several accounts dissected for wages, you are required to manually enter the total of these payments. It is proposed in future to consolidate and co-ordinate specific accounts to be used as wage accounts, after which they will be transferred to the BAS. Note that PAYG is uSUAlly done monthly.

  W2:

  This is the value of the tax withheld from wages for PAYG or group tax. This figure will be automatically transferred from the 2040 account if there is a figure in the 2040 account. Otherwise it can be manually entered by the user. As a result, it is recommended that income or group tax be journalled on a weekly basis, using journal entry’s, crediting the 2040 account, and debiting your PAYG tax expense account in the 5, 7 or 9’s, each week for the value of the PAYG tax. You can then journal from the bank, to the 2040 account when the PAYG is paid to the government. Further explanation of this is provided in the next pages. W2 includes other payments such as child support, which has been deducted from wages.

  W3:

  This is any amount withheld by banks or other financial institutions, because a tax file number has not been supplied to a financial institution. This figure needs to be manually entered by the user.

  W4:

  This is the 48.5% withheld from payments to supplier, where the supplier has not provided an ABN. This figure is automatically transferred to the BAS from the 2030 account. This account was previously used for sales tax calculations. Please ensure that sales tax prior to July 2000 has been paid or you transfer any outstanding sales tax to another liability account using a journal entry. W2 + W3 + W4 are transferred to 4 on the front of the BAS.

  T1:

  Instalment income is the value of PAYG tax.

  T2:

  This is a commissioners % tax rate which will be supplied to you by the tax office and must be manually entered.

  T3:

  Varied instalment rate supplied by the tax office which must be manually entered.

  PAYG tax

  PAYG tax is uSUAlly paid monthly even if you have a quarterly GST period. You are required to complete a BAS every month, even if 2 out of every 3 are only used for PAYG. The calculated instalment income is transferred to 5A on the front of the BAS. F1: This is the calculated fringe benefit tax instalment. F2: This is the estimated total fringe benefit tax total. F3: This is the variable Fringe Benefit Tax instalment. F4: This is the reason for such variation. The fringe benefit tax instalment is transferred to 6A on the front of the BAS. The user must manually enter all of the fringe benefit tax figures.

  Front of the BAS

  The front of the BAS includes your company name and address.

  A1:

  this is a document identification number presented by the tax office.

  A2:

  this is your company ABN

  A3:

  this is the period covered by the BAS. If you are on monthly BAS Then it will begin at the beginning of the current month, and end at the end of the current month. If you are on a quarterly BAS, it will begin at the beginning of the quarter, and end at the end of the quarter.

  A4

  Wine equalisation tax.

  A5:

  This is the date that the payment of the GST owed is due.

  1A:

  This is the amount owed for sales which was transferred from G9.

  1E:

  This equals the tax payable on luxury cars. This should be manually entered by the user.

  2A:

  This is the total of 1A and 1E, which is the total of GST and luxury car tax payable. We have purposely excluded wine equalisation tax from the BAS report.

  1B:

  This is the credit for GST paid on acquisitions transferred from G20.

  1F:

  This is luxury car tax refundable.

  1G:

  This is the credit for wholesale sales tax for stock on hand for the 30 or 6 or 2000. This is calculated as follows: For each item- cost including tax – cost excluding tax X the quantity on hand. This formula only applies if the tax paid for stock items was Y for Yes, and the tax class was not N for non taxable. This is assuming that you are entitled to a full 100% rebate of the sales tax paid for stock on hand, as at 30 or 6 or 2000. Certain regulations may prohibit claiming all of this sales tax. Please refer to your accountant for further clarification.

  2B:

  This includes 1B + 1F + 1G, which is the GST credit, plus luxury car tax refund, plus credit for wholesales sales tax.

  3:

  2A – 2B, which is the total of GST payable – the GST input credits. Please note that if the result is positive, then this is the amount of GST owed to the government. However, if the amount is negative, this is the GST credit owed to you by the government.

  4:

  This is value of PAYG withholding tax transferred from ( W2 + W3 + W4).

  5A:

  This is the PAYG instalment transferred from (T1, T2, T3).

  6A:

  This is the Fringe Benefits tax transferred from (F1, F2, F3, F4).

  7:

  This is the deferred company or fund instalment.

  8A:

  This is: 2A + 4 + 5A + 6A = 7

  5B:

  This is the credit adjustment for previous income tax instalment.

  6B:

  This is the adjustment for the fringe benefits tax, and must be manually entered.

  8B:

  This is: 2B + 5B + 6B

  9:

  This is the net amount of money payable to or creditable from the tax office. It is 8A – 8b. If the result is positive, the amount is payable to the Tax office. If the result is negative, the amount will be refundable to you or offset against any other tax debt you have.