What is Simpler BAS?¶

A business activity statement (BAS) is the form a business uses to report amounts like GST (goods and services tax) to the Australian Taxation Office (ATO). For a long time, the GST part of that form asked a lot of questions.

Simpler BAS is a simplified way to report GST. It cuts the GST part of the activity statement down to just a few boxes, and it also makes the GST bookkeeping easier by leaving you with far fewer GST codes to sort your transactions into.

In one line

Simpler BAS is the simplified way most small businesses report GST — fewer boxes to fill in on the activity statement, and fewer GST codes to use in your books.

Why this matters¶

If you run a small business, the GST section of the BAS used to be the fiddly part. Simpler BAS removes most of that. Knowing you are on Simpler BAS means you can stop worrying about the extra labels and codes, and focus on the few numbers that matter.

What you will learn¶

What Simpler BAS is
How it simplifies both the activity statement and the bookkeeping
That it is the default GST reporting method for eligible small businesses

Understanding the concept¶

Simpler BAS started on 1 July 2017. The ATO reduced the number of GST questions on the activity statement so most small businesses only report three GST amounts:

Total sales (label G1)
GST on sales (label 1A)
GST on purchases (label 1B)

That is the whole GST section for most small businesses. The extra GST labels that used to be on the form are no longer required.

Simpler BAS also makes the bookkeeping easier. When you record a transaction, you still need to say whether it has GST on it — but you no longer have to pick from a long list of GST classification codes. In most cases the choice comes down to a simple GST or No GST. Fewer codes means fewer chances to sort a transaction the wrong way.

Simpler BAS is the default GST reporting method for eligible small businesses. That means most small businesses are on it automatically — there is nothing to sign up for.

For accountants & bookkeepers

The ATO's Simpler BAS bookkeeping guide reduces the GST tax codes a small business needs from the older, longer set down to a short list built around GST and No GST (with the usual GST-free and input-taxed treatments still applied where relevant). On the activity statement itself, eligible entities report G1, 1A and 1B only; the additional GST labels are not required. Simpler BAS changes only the GST reporting and bookkeeping — it does not change how much GST is actually payable.

Example¶

Priya runs a small cafe. When Simpler BAS started, the GST section of her BAS went from a page of questions down to three: her total sales, the GST she collected on those sales, and the GST she paid on her purchases. In her books, she no longer has to choose from a long list of GST codes — for most transactions she just marks them GST or No GST. The BAS still asks for the same tax to be paid; it is just far quicker for Priya to prepare.

Common mistakes¶

Thinking Simpler BAS changes how much GST you owe — it only changes what you report and how you code your transactions.
Assuming you have to apply for it — for eligible small businesses it is automatic.
Expecting the old extra GST labels to still be there — most are gone under Simpler BAS.

How this works in myaccountant¶

In the app — myaccountant reports your GST using the Simpler BAS method, so the GST section of your activity statement shows the reduced set of labels (total sales, GST on sales, and GST on purchases). As you record income and expenses, you mark each one as having GST or not, and myaccountant totals those amounts into the right labels for you.

Key points¶

Simpler BAS is the simplified way most small businesses report GST.
It started on 1 July 2017.
The GST section of the activity statement is cut to a few labels — total sales, GST on sales, and GST on purchases.
It also reduces the GST codes you use in your books, often to just GST or No GST.
It is the default GST reporting method for eligible small businesses.
It does not change how much GST you actually owe.

Learn next¶

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

Did this answer your question?