Reporting periods¶

Your activity statement covers a period of time. How long that period is — a month, a quarter, or a whole year — is your reporting period. It tells you how often you report your GST and other amounts to the Australian Taxation Office (ATO).

There are three GST reporting cycles — monthly, quarterly and annual. Most small businesses report quarterly. Which cycle applies to you depends mainly on your GST turnover, and the ATO tells you which one you are on.

Why this matters¶

Your reporting period sets the rhythm of your bookkeeping. If you report quarterly, you gather your figures four times a year. If you report monthly, you do it every month. Knowing your cycle helps you plan your time and set aside money for what you owe, so nothing catches you by surprise.

What you will learn¶

• The three GST reporting cycles — monthly, quarterly and annual
• How GST turnover affects which cycle applies
• That the ATO sets your reporting cycle

Understanding the concept¶

GST turnover is, in simple terms, your business income from your normal activities over a year (before GST, and not counting certain amounts). The ATO uses it to work out how often you should report.

Here is how the three cycles work.

Quarterly — a quarter is a three-month period, so you report four times a year. The ATO explains that if your GST turnover is less than $20 million (and the ATO has not told you to report monthly), you can report and pay GST quarterly. This is the most common cycle for small businesses.

Monthly — you report twelve times a year. The ATO explains that if your GST turnover is $20 million or more, you must report monthly. If your turnover is under that, you can still choose to report monthly if it suits you.

Annual — you report once a year. The ATO explains that you can report annually if you are voluntarily registered for GST and your GST turnover is under the registration threshold — that is, under $75,000 (or $150,000 for not-for-profit bodies). "Voluntarily registered" means you chose to register even though you were not required to.

The ATO sets your reporting cycle and tells you what it is. You do not simply pick one and start — your turnover and your registration decide it for you.

Example¶

Sam owns a busy suburban cafe. The cafe's GST turnover is well under $20 million, so the ATO has Sam reporting quarterly — four activity statements a year. That rhythm suits Sam, who reconciles the books at the end of each quarter.

A large food-distribution company that supplies dozens of cafes has a GST turnover above $20 million. Because of that size, the ATO requires it to report monthly.

Meanwhile, Priya runs a very small side business. She chose to register for GST even though her turnover is under $75,000. Because she is voluntarily registered and under the threshold, she is eligible to report annually — just once a year.

Common mistakes¶

• Assuming you can freely choose your cycle — the ATO sets it based on your situation.
• Thinking turnover does not matter — it is the main factor in your reporting cycle.
• Believing every business reports quarterly — some report monthly, some annually.

How this works in myaccountant¶

Key points¶

• The three GST reporting cycles are monthly, quarterly and annual.
• Most small businesses report quarterly.
• A GST turnover of $20 million or more means you must report monthly.
• Some eligible small businesses can choose to report annually.
• Your GST turnover is the main factor in which cycle applies.
• The ATO sets your reporting cycle and tells you what it is.

Learn next¶

• What is an activity statement?
• Understanding BAS and IAS
• Activity statement due dates

General information only — not tax, super or financial advice.