Understanding activity statement labels¶

An activity statement is not one big number. It is made up of small labelled boxes, and each box has a short code — its label. Every label asks for one particular figure, such as your total sales or the tax you took out of wages.

Once you know that a label is just a coded box for one figure, the whole statement becomes far less scary. You are simply filling a few boxes with amounts that come straight from your records.

In one line

Each label on an activity statement is a coded box for one figure — and you only fill in the labels that apply to your business.

Why this matters¶

When people first see an activity statement, the codes like G1, 1A and W2 can look like a foreign language. Knowing that each code is just a labelled box — and that you only complete the ones relevant to you — takes away most of the worry before you even start.

What you will learn¶

What a label on an activity statement is
The main groups of labels for GST, PAYG withholding and PAYG instalments
Why you only fill in the labels that apply to you

Understanding the concept¶

A label is a coded box on the activity statement. Each label holds one figure. The codes are grouped so that related figures sit together.

GST labels start with G. For example, the ATO uses G1 for your total sales. There are two important summary boxes that report the GST itself: 1A is the GST on sales (the GST you collected), and 1B is the GST on purchases (the GST credits you are claiming on what you bought).

PAYG withholding labels start with W. If you have employees, W1 is the total of the salary, wages and other payments you made, and W2 is the total amount you withheld from those payments to send to the ATO.

PAYG instalment labels use T. These labels cover a pre-payment towards your own income tax for the year. For example, the ATO uses T1 for your instalment income.

You do not fill in every label. You only complete the labels that apply to your situation. A business that is not registered for GST leaves the G labels blank. A business with no employees leaves the W labels blank. Each of these labels gets its own plain-English lesson in a later module — here we are just meeting them.

For accountants & bookkeepers

The ATO groups the fields on the activity statement by obligation: G labels for GST, W labels for PAYG withholding, and T labels for PAYG instalments. On a Simpler BAS, the GST reporting reduces to G1 (total sales), 1A (GST on sales) and 1B (GST on purchases). 1A and 1B are the summary GST amounts that feed the final settlement, while W1 and W2 report the gross wages and the amounts withheld respectively.

Example¶

Priya runs a small cafe and is registered for GST. When she opens her activity statement, she fills in G1 with her total sales for the quarter, 1A with the GST she collected on those sales, and 1B with the GST credits on the coffee beans, milk and equipment she bought. Because she has two part-time staff, she also fills in W1 with the total wages she paid and W2 with the tax she withheld from those wages. She leaves the other labels blank — they do not apply to her cafe.

Common mistakes¶

Thinking you must fill in every label — you only complete the ones that apply to you.
Mixing up 1A and 1B — 1A is the GST you collected on sales, 1B is the GST on your purchases.
Assuming the labels are random codes — they are grouped by type (G for GST, W for withholding, T for instalments).

How this works in myaccountant¶

In the app — myaccountant fills in the activity statement labels for you from the data already in your books, so you can see which labels apply and what figure sits in each one before you lodge.

Key points¶

Each label is a coded box for one particular figure.
GST labels start with G — for example G1 for total sales.
1A is the GST on sales you collected; 1B is the GST on your purchases.
PAYG withholding labels start with W — W1 is total wages, W2 is the tax withheld.
PAYG instalment labels use T.
You only fill in the labels that apply to your business.

Learn next¶

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

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