GST reporting periods¶

Once you are registered for GST, you report the GST you have collected and the GST credits you are claiming on a regular basis. You do this on your Activity Statement. But how often is "regular"? For some businesses it is every month, for most it is every three months, and for some it is once a year.

Which cycle you are on mostly comes down to one thing — your GST turnover. This lesson explains the three cycles and how your turnover decides which one applies to you.

In one line

You report and pay GST monthly, quarterly or annually — and your GST turnover is the main thing that decides which cycle you are on.

Why this matters¶

Your reporting cycle sets the rhythm of your business admin. It tells you how often you need to add up your GST, lodge your Activity Statement, and pay any GST you owe. Knowing your cycle helps you plan your time and set aside the money you will need.

What you will learn¶

The three GST reporting cycles — monthly, quarterly and annually
How your GST turnover affects which cycle you are on
That you report GST on your Activity Statement each period

Understanding the concept¶

GST turnover is, roughly, your business income for GST purposes — your sales, before you take out costs. The Australian Taxation Office (ATO) uses your GST turnover to work out how often you report GST.

There are three cycles:

Monthly. The ATO explains that if your GST turnover is $20 million or more, you must report and pay GST monthly. The ATO can also ask some other businesses to report monthly.

Quarterly. If your GST turnover is below that level and the ATO has not told you to report monthly, you can report every three months. This is the cycle most small businesses are on.

Annually. Some businesses can report GST once a year. The ATO explains this option is generally for businesses that chose to register for GST voluntarily — that is, their GST turnover is under the registration threshold but they registered anyway.

Whichever cycle you are on, the place you report your GST is the same — your Activity Statement. Each period you report the GST you collected on your sales and the GST credits you are claiming, and the statement shows whether you owe GST or are owed a refund.

For accountants & bookkeepers

The ATO sets the $20 million turnover threshold as the point at which monthly GST reporting becomes mandatory, with electronic lodgment required at that level. The annual option is generally available to entities that are voluntarily registered (GST turnover under the registration threshold). The ATO can also move a business from one cycle to another. Reporting cycle is separate from the accounting method (cash or accruals) and from Simpler BAS — those are decided on their own tests.

Example¶

Priya runs a small homewares shop. Her GST turnover is well under the monthly threshold, and the ATO has not asked her to report monthly, so she reports GST quarterly. Every three months she adds up the GST she collected on her sales and the GST credits on her purchases, and lodges her Activity Statement.

Jordan runs a fast-growing wholesale business. His GST turnover has climbed past $20 million, so he must report GST monthly. He now lodges an Activity Statement every month instead of every quarter.

Sam does a little consulting on the side. Sam's turnover is under the registration threshold, but Sam chose to register for GST anyway. Sam is eligible to report annually, lodging just once a year.

Common mistakes¶

Assuming everyone reports quarterly — large turnovers must report monthly, and some eligible businesses report annually.
Thinking you pick your cycle freely — your GST turnover, and what the ATO tells you, decides it.
Confusing your reporting cycle with your accounting method (cash or accruals) — they are two separate choices.
Forgetting to set money aside between statements, then being short when the GST is due.

How this works in myaccountant¶

In the app — myaccountant keeps a running total of the GST on your sales and purchases as you record them, and brings those totals through to your Activity Statement each period. Whether you report monthly, quarterly or annually, the GST is already added up and ready on your statement when the time comes.

Key points¶

You report and pay GST monthly, quarterly or annually.
Your GST turnover is the main thing that decides your cycle.
Large turnovers (the ATO sets the threshold at $20 million) must report monthly.
Most small businesses report quarterly.
Some businesses that registered voluntarily can report annually.
You report your GST on your Activity Statement each period.

Learn next¶

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

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