Australian GST Reporting Guide
Australian GST Reporting Guide
Australian GST-registered businesses need to keep records, report GST and account for it through the activity statement process. This guide covers the main ideas in plain terms, but the ATO instructions for your own situation are the final word.
What gets reported
GST reporting generally involves taxable sales, GST collected, eligible purchases and GST credits, along with other amounts required on the relevant activity statement. Which fields you fill in depends on your business and your reporting cycle.
GST collected
For a taxable sale subject to the standard rate, GST is 10% of the GST-exclusive price. If a displayed price already includes GST, the GST component is one-eleventh of the total.
GST credits
GST-registered businesses may be able to claim credits for eligible business purchases when the relevant requirements are met. Records and tax invoices are important evidence for these claims.
GST-free and input-taxed transactions
Not every transaction uses the 10% calculation. GST-free and input-taxed supplies are treated differently, including different consequences for related GST credits. Correct classification is part of accurate reporting. Our GST-free versus input-taxed checker walks through the difference.
Accounting methods
Businesses can account for GST using cash or non-cash methods if they meet the eligibility rules. The method affects which reporting period the GST falls into. See the Australian GST accounting method checker to work out which one fits your business.
BAS and record keeping
Keep transaction records, invoices and other supporting documents required by Australian tax law. Lodge each statement by its due date and keep the paperwork that backs up the GST you collected and the credits you claimed. The BAS due date guide for Australia lists the quarterly deadlines.
Worked example: a quarter for a Brisbane cafe
A Brisbane cafe registered for GST has a steady quarter. It makes $88,000 in taxable sales including GST. The GST collected is one-eleventh of that total, which works out to $8,000. Over the same quarter it spends $33,000 including GST on ingredients, rent and equipment, so the GST credits come to $3,000. The net GST payable on the BAS is $8,000 minus $3,000, which is $5,000. The cafe also buys $5,500 of fresh fruit for its smoothies. Fresh fruit is GST-free, so those purchases sit outside the calculation and add no credits.
Practical tips for cleaner GST reporting
Reconcile your accounting software against your bank statements every month, not just at BAS time. Keep every tax invoice for purchases over $82.50, because you generally cannot claim the GST credit without one. Record whether each sale was taxable, GST-free or input-taxed when the sale happens, since fixing classifications months later is where most errors creep in. If you report on the cash method, make sure your software attributes GST to the period you were paid rather than the period you invoiced. Where an asset is used partly for private purposes, apportion the GST credit to the business share only.
Frequently asked questions
How do I work out the GST in a GST-inclusive price?
Divide the total by 11. A $110 sale includes $10 of GST. You can check any figure on the BAS GST calculator before you lodge.
When is my quarterly BAS due?
Quarterly BAS due dates are 28 October, 28 February, 28 April and 28 July. Lodging online gives you an extra two weeks in most cases.
Can I claim GST credits without a tax invoice?
For purchases of $82.50 or more including GST, you need a valid tax invoice to support the claim. Keep your records for at least five years.
What is the difference between GST-free and input-taxed?
GST-free sales, such as basic food, attract GST at 0% and you can still claim credits on related purchases. Input-taxed sales, such as residential rent, attract no GST and you generally cannot claim credits on related purchases.
Useful calculators
Official source
For current reporting requirements, thresholds and due dates, use the Australian Taxation Office.
