When you register for GST you will be presented with three options to choose how frequently you will lodge your Business Activity Statements and pay GST to the ATO. The three options you will be able to choose between are Annually, Quarterly, and Monthly, each with their own benefits and requirements. Which option you choose will depend on your business and its requirements.
To help you understand the requirements and obligations we have put together this guide. Learn more about each reporting cycle bellow.
If you are voluntarily registering for GST and have an annual turnover bellow $75,000 you can elect to report GST annually. This means you will only need to lodge your BAS and pay GST once a year, at the end of the financial year. However, you will not be able to use the deferred GST scheme.
To report GST you can use the Simpler BAS reporting method. This means you will report less information on your Annual GST return. The information you need to report includes total sales, GST on sales, GST on purchases. You can also report other tax obligations, like wine equalisation tax, luxury car tax, etc, annually if required.
Quarterly is the most common choice for businesses when reporting their BAS. You can choose quarterly reporting if your annual turnover is less than $20 million a year. This reporting option also allows you to use any one of three reporting methods. However, if you earn of $10 million a year you must choose the full reporting method.
When reporting a BAS quarterly you can choose between using the Full reporting method, Simpler BAS reporting method, or GST instalments method. For quarterly reporting you must report Total sales, export sales, GST-free sales, capital purchases, non-capital purchases, GST on sales, GST on purchases.
Monthly reporting is the final option you can choose for your reporting period. For most businesses it is optional, however those earning over $20 million a year or those who have been requested by the ATO must lodge their BAS monthly. If you have to report monthly, you will be notified by the ATO.
When reporting monthly you are required to use the Full reporting method, unless your business earns less that $10 million where you can use the Simpler BAS reporting method. On a monthly report you must include total sales, export sales, GST-free sales, capital purchases, non-capital purchases, GST on sales, and GST on purchases.
How to lodge your BAS
Once you know the frequency you are required to report at you will need to lodge your BAS by the due date. The simplest way to lodge your BAS is through BASLodge.com.au. At BASLodge.com.au we are registered tax agents allowing us to provide you with expert assistance through the reporting process. We can advise you, answer any questions, and will review your BAS to ensure it has been completed correctly before it is lodged. If you struggle to meet the due dates set for your reporting period, our registered tax agents can grant you a 4-week extension to lodge your BAS. Lodge your BAS with BASLodge.com.au today.