Goods and Services Tax (GST) can be efficiently and seamlessly prepared throughout the financial year with the preparation of BAS and IAS as per ATO standards. We can advise your business as to the best process to suit your cash flow and individual needs.

Cash & non-cash basis (Accruals) are the two methods of accounting for GST. Choosing these methods will make business decide how they want to report on GST.

Cash Basis

Businesses with a turnover less than $2 Million can choose any of the above methods for income tax purposes.  However, Larger businesses use accrual or non-cash accounting method for reporting.

Managing your cash flow becomes really easy in cash based accounting. You will be only accountable for the activity statements liability for the cash which has been flow to the business.

Sales: – You only liable for GST credits that you have collected on the sales in the reporting period. If you have received part payment of the sales then you only pay proportion of the GST credit you received on the sales.

Purchases: – You can claim GST credits when you paid for the services/Goods.  In order to claim GST credits, you should have tax invoice for any purchases of $82.50 or above. If you paid part payment for the tax invoice then you can only claim the part payment of GST credits.

Non-Cash Basis (Accrual)

Larger business must use non-cash or Accrual accounting method for reporting. Non-cash reporting means you should report GST on the Business Activity statement that covers for any tax invoice been issued to customer for payment and any tax invoice been issued by supplier to you for payment.

Sales : You should pay GST on the sales for the tax invoices that you have issued in the reporting period of business activity statement regardless of any part payment or full payment been received by customer.

Purchases: You must claim GST credits for any tax invoices you have received from the supplier regardless of any part or full payment you have made to supplier.
Please note that you have four years to claim GST credits if any of GST credits you have not claimed.

When and how to report and pay GST

Your GST reporting and payment cycle will be one of the following:

• Monthly – if your GST turnover is $20 million or more.
• Quarterly – if your GST turnover is less than $20 million – and we have not told you that you must report monthly.
• Annually – if you are voluntarily registered for GST. That is, you are registered for GST; and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).

Depending on your circumstances, you can change the cycle you use to report and pay GST.  This may happen when your GST turnover changes or if you choose to report and pay using a different cycle.