Who is eligible for Simpler BAS?¶

Simpler BAS is the simplified way most small businesses report GST (goods and services tax). The good news is that most small businesses do not have to do anything to be on it — eligibility is based on the size of the business.

This lesson explains who qualifies, why there is nothing to apply for, and how you can tell which GST reporting method you are on.

In one line

Small businesses with a GST turnover under the small-business threshold are on Simpler BAS automatically — there is nothing to apply for.

Why this matters¶

If you are unsure which GST reporting method you are on, you cannot be sure which labels your activity statement should show. Knowing you qualify for Simpler BAS — and that it happens automatically — saves you from second-guessing the form or trying to sign up for something you are already on.

What you will learn¶

The GST turnover threshold for Simpler BAS eligibility
Why eligibility is automatic, with nothing to apply for
How to tell which GST reporting method you are on

Understanding the concept¶

Eligibility comes down to your GST turnover — broadly, your business income for GST purposes. The ATO sets a threshold for small businesses. A business with a GST turnover of less than $10 million is a small business for this purpose and is on Simpler BAS.

This is automatic. There is no form to fill in and nothing to apply for. If your GST turnover is under the threshold, the ATO reports your GST using the Simpler BAS method by default.

Newly registered small businesses are on Simpler BAS from the start. When a small business registers for GST, Simpler BAS is the default, so a new business owner does not have to choose it.

The ATO works out which method you are on from the turnover figure in its records — the figure you gave when you registered for GST, or updated later. It generally reviews this at the end of each financial year.

So how do you know which method you are on? The clearest sign is the GST section of your activity statement: if it only asks for a few GST amounts (total sales, GST on sales, and GST on purchases), you are on Simpler BAS. If you are still unsure, you can check with the ATO.

For accountants & bookkeepers

The ATO determines the reporting method from the entity's recorded projected or current GST turnover and rolls it over each financial year. Entities under the small-business turnover threshold default to Simpler BAS unless they are on GST instalments. If a client's turnover changes, the recorded turnover can be updated with the ATO, which can move them between methods from the start of a tax period.

Example¶

Jordan starts a small landscaping business and registers for GST. Jordan expects turnover well under the threshold, so nothing extra needs to be done — the business is on Simpler BAS from the first activity statement. When Jordan's first BAS arrives, the GST section only asks for total sales, GST on sales, and GST on purchases. Jordan did not apply for anything; being a small business was enough.

Common mistakes¶

Thinking you have to apply for Simpler BAS — for eligible small businesses it is automatic.
Assuming a brand-new business has to opt in — new small businesses are on it by default.
Not checking the activity statement to confirm which method you are on — the number of GST boxes is the quickest clue.

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 for eligible small businesses (total sales, GST on sales, and GST on purchases). You do not need to turn anything on to use it.

Key points¶

Eligibility is based on your GST turnover.
A GST turnover of less than $10 million makes a business eligible for Simpler BAS.
It is automatic — there is nothing to apply for.
Newly registered small businesses are on Simpler BAS by default.
The ATO works out your method from your recorded turnover and reviews it each year.
The number of GST boxes on your activity statement tells you which method you are on.

Learn next¶

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

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