Moving to Simpler BAS¶

Simpler BAS is the standard way most small businesses report GST (goods and services tax) on their business activity statement (BAS). It became the standard from 1 July 2017, when the Australian Taxation Office (ATO) cut the number of GST questions on the form.

The good news for most people is that there is nothing to do. Eligible businesses were moved onto Simpler BAS automatically, and newly registered small businesses use it by default. There is nothing to opt in to for the reduced GST labels.

In one line

Simpler BAS became the standard GST reporting for small business on 1 July 2017 — eligible businesses were moved onto it automatically, and there is nothing to opt in to.

Why this matters¶

Many small-business owners worry they have to apply for the simpler form, or that they missed a sign-up step. You almost certainly did not. Knowing that Simpler BAS is automatic for eligible businesses saves you chasing a form that does not exist, and lets you get on with the short GST section you already have.

What you will learn¶

When Simpler BAS became the standard GST reporting method
That eligible and newly registered small businesses are on it automatically
What changes in practice, and what stays exactly the same

Understanding the concept¶

The ATO introduced Simpler BAS as the standard GST reporting method for small businesses from 1 July 2017. On that date the number of GST questions on the activity statement was reduced, so most small businesses now report only three GST amounts: their total sales, the GST on their sales, and the GST on their purchases.

There was nothing eligible businesses had to do to move across. The ATO moved eligible existing small businesses onto Simpler BAS automatically. And any small business that registers for GST now uses Simpler BAS by default. There is nothing to opt in to for the reduced set of GST labels — it is simply the standard method for eligible small businesses.

What changes in practice is small and all in your favour:

Fewer labels on the form. The GST section shrinks to a few boxes instead of a long list.
Simpler GST bookkeeping. When you record a transaction, you no longer pick from a long list of GST codes. In most cases the choice is a simple GST or No GST.

What does not change is important to hear clearly: Simpler BAS does not change how much GST you pay. The amount of GST you collect on sales and claim on purchases is the same as before. Simpler BAS only changes how you report it — fewer boxes to fill in and fewer codes to sort your transactions into.

For accountants & bookkeepers

From 1 July 2017 the ATO reduced the GST questions from seven to three, and Simpler BAS became the default reporting method for small business entities below the relevant GST turnover threshold. Eligible existing clients were transitioned automatically and newly registered small businesses default to it. The reporting method is generally reviewed against turnover each year. The net GST outcome is unchanged — the change is to the reported label set (G1, 1A, 1B for GST) and to the simplified GST bookkeeping codes, not to the underlying liability.

Example¶

Sam registered a new online store for GST last year and spent an afternoon looking for the setting to switch on the "simpler" activity statement. There was no setting to find. Because Sam's business is a small business, it uses Simpler BAS by default — the GST section of the BAS was already just a few boxes, and the GST codes in the books were already down to GST or No GST. Nothing had to be opted in to, and the GST Sam owes is exactly what it would have been on the old, longer form. The only difference is how quick it is to report.

Common mistakes¶

Looking for a form or setting to opt in — for eligible small businesses Simpler BAS is automatic, so there is nothing to apply for.
Thinking moving to Simpler BAS changed the amount of GST owed — it only changed how the GST is reported.
Assuming a business had to redo its past statements — the change applied going forward from when Simpler BAS became the standard.

How this works in myaccountant¶

In the app — myaccountant reports your GST using the Simpler BAS method, so the activity statement already shows the reduced set of labels and there is nothing for you to switch on. As you record income and expenses, you mark each one as having GST or not, and myaccountant totals those amounts into the right labels. Before you lodge, myaccountant checks your figures for errors so the statement is ready to go.

Key points¶

Simpler BAS became the standard GST reporting for small business on 1 July 2017.
Eligible existing small businesses were moved onto it automatically.
Newly registered small businesses use Simpler BAS by default.
There is nothing to opt in to for the reduced GST labels.
In practice you get fewer labels on the form and simpler GST bookkeeping codes.
It does not change how much GST you pay — only how you report it.

Learn next¶

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

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