GST – completing your activity statement - Australian Taxation Office

Instructions for GST-registered businessesGST – completing youractivity statementOther activity statement instructions are available for pay as yougo instalments, pay as you go withholding, fringe benefits tax,luxury car tax and wine equalisation tax. For more information:n visit our website at ato.gov.aun phone us on 13 28 66.NAT 7392-07.2013

OUR COMMITMENT TO YOUWe are committed to providing you with accurate, consistentand clear information to help you understand your rights andentitlements and meet your obligations.If you follow our information in this publication and it turns outto be incorrect, or it is misleading and you make a mistake asa result, we must still apply the law correctly. If that means youowe us money, we must ask you to pay it but we will not chargeyou a penalty. Also, if you acted reasonably and in good faith wewill not charge you interest.If you make an honest mistake in trying to follow our informationin this publication and you owe us money as a result, we willnot charge you a penalty. However, we will ask you to paythe money, and we may also charge you interest. If correctingthe mistake means we owe you money, we will pay it to you.We will also pay you any interest you are entitled to.If you feel that this publication does not fully cover yourcircumstances, or you are unsure how it applies to you,you can seek further assistance from us.We regularly revise our publications to take account of anychanges to the law, so make sure that you have the latestinformation. If you are unsure, you can check for more recentinformation on our website at ato.gov.au or contact us.This publication was current at July 2013.© AUSTRALIAN TAXATION OFFICE FOR THECOMMONWEALTH OF AUSTRALIA, 2013You are free to copy, adapt, modify, transmit and distribute this material asyou wish (but not in any way that suggests the ATO or the Commonwealthendorses you or any of your services or products).PUBLISHED BYAustralian Taxation OfficeCanberraJuly 2013JS 28221

CONTENTSCHAPTERABEFORE YOU STARTWhat you need to do to complete your activity statement 401INTRODUCTION 5About these instructions 5Terms we use 5Your activity statement 6Tax invoices 802CHECK IF YOU NEED ADDITIONALINSTRUCTIONS 903CHOOSE A METHOD TO COMPLETEYOUR ACTIVITY STATEMENT 10Calculation worksheet method 10Accounts method 1204IDENTIFY YOUR REPORTING ANDPAYMENT PERIOD 13Report and pay GST monthly 13Quarterly options 13Report and pay GST annually 14BHOW TO COMPLETE YOURACTIVITY STATEMENT07COMPLETING THE GST LABELS ONYOUR ACTIVITY STATEMENT 18Step 1 Complete sales on the front of youractivity statement 18G1 Total sales 18G2 Export sales 21G3 Other GST‐free sales 23Step 2 Calculating sales on the calculation worksheet 25G4 Input taxed sales 25G5 Subtotal (G2 + G3 + G4) 26G6 Total sales subject to GST 26G7 Adjustments 26G8Total sales subject to GST afteradjustments 26G9 GST on sales 26Step 3 Complete purchases on the front of youractivity statement 27G10 Capital purchases 27G11 Non‐capital purchases 2905IDENTIFY YOUR ACCOUNTING BASIS 15Accounting on a cash basis 15Accounting on a non‐cash basis (accruals) 1506CORRECTING AND ADJUSTING GSTIN YOUR ACTIVITY STATEMENTS 16Adjustments 16When adjustments arrive 16Correcting GST errors 161

CONTENTSCAFTER COMPLETING YOURACTIVITY STATEMENTStep 4 Calculating purchases using the calculationworksheet 31G12 Subtotal (G10 + G11) 31G13 Purchases for making input taxed sales 32G14 Purchases without GST in the price 34G15Estimated purchases for private use ornot income tax deductible 34G16 Subtotal (G13 + G14 + G15) 36G17 Total purchases subject to GST 36G18 Adjustments 36G19Total purchases subject to GST afteradjustments 36G20 GST on purchases 36Step 5 Complete the summary on the back ofyour activity statement 371A GST on sales or GST instalment 371B GST on purchases 3808LODGING YOUR ACTIVITY STATEMENTAND PAYING US 42If you can’t lodge and pay on time 42How to lodge and pay 42Expecting a refund? 4309EXAMPLE OF RECORD KEEPING 44CALCULATION WORKSHEET 45DEFINITIONS 48INDEX 49MORE INFORMATIONinside back coverStep 6 Check your completed activity statement 392

BEFORE YOU STARTA

WHAT YOU NEED TO DO TO COMPLETEYOUR ACTIVITY STATEMENTIf you are new to completing the GST sectionof your activity statement1 Read the following five chapters in this section:––Introduction––Check if you need additional instructions––Choose a method to complete your activity statement––Identify your reporting and payment period––Identify your accounting basis.2 Complete each step in the ‘How to complete your activitystatement’ section that is relevant to the method youchoose to complete your activity statement.If you have completed the GST section of youractivity statement before but are new to theseinstructions1 Refer to each chapter in this ‘Before you start’ section andread any chapters that contain unfamiliar topics or explainchoices you have not made yet.2 Complete each step in the ‘How to complete your activitystatement’ section that is relevant to the method you chooseto complete your activity statement.If you have completed the GST section ofyour activity statement and have used theseinstructions before1 If you need to correct or adjust a previous statement,read chapter 6.2 Complete each step in the ‘How to complete your activitystatement’ section that is relevant to the method youchoose to complete your activity statement.When completing your activity statement:n check your reporting period at the top of the GSTsection of your activity statementn leave labels blank if they don’t apply to you unlessotherwise instructed (do not use N/A or nil)n round down to whole dollars (do not show cents)n don’t report negative figures or use symbols suchas +, –, /, $.To ensure we can scan your activity statement correctly:n print clearly using a black penn use BLOCK LETTERS and print one characterin each boxn don’t write any additional information on your activitystatement – contact us on 13 28 66 if your detailshave changed.Also see ‘More information’ on the inside back coverfor how to contact us.4

INTRODUCTION01ABOUT THESE INSTRUCTIONSThese instructions will help you through each step tocompleting the GST section of your activity statement.To use these instructions you need to be comfortablewith the concepts of:n how GST works and how to calculate GSTn what taxable sales, GST-free sales and input taxed sales aren when you can account on a cash or non-cash basisn when you report GST amounts and claim GST creditsn the requirements for tax invoices and adjustment notes.If you are new to business, GST for small business(NAT 3014) will introduce you to GST and help youunderstand GST concepts and terminology.If you operate a non-profit organisation, Tax basics fornon‐profit organisations (NAT 7966) will provide you withmore information.If your business has to account for complex or uncommonGST situations, you can also obtain supplementary activitystatement instructions from us (refer to page 9).TERMS WE USEWhen we say:n sales, we mean the GST term suppliesn purchases, we mean the GST term acquisitionsn GST credits, we mean the GST term input tax creditsn reporting period, we mean the GST term tax periodn payments made or received, we mean the GST termconsiderationn business, we mean the GST term enterprise.Some technical terms used in these instructions may be newto you. They are explained in the list of ‘Definitions’ on page 48.Throughout this guide you will find important notes (look forthe symbol) which will help you find key information.You will also find More information boxes (look for thesymbol) that will explain any further steps you mayneed to take or additional information you can refer to.5

01 INTRODUCTIONYOUR ACTIVITY STATEMENTYour activity statement is personalised to your business andis based on your GST registration details. It is important thatyou report on the form that we send you. We will send youyour activity statement with sufficient time for you to completeit before you need to lodge it.From 1 July 2012, a self assessment system applies toindirect tax laws. When you lodge your activity statement fora tax period that starts on or after 1 July 2012, we are treatedas having made an assessment of your net amount workedout in accordance with the information in the activity statement.We will treat that activity statement as a notice of assessmentissued on the day you lodge.An example of the GST section of a completedquarterly activity statement can be found on page 46.EXAMPLE: A quarterly activity statement (front)If the words ‘do not complete this option’ are printed across an option, you must use another option.The document IDis a unique identifierfor each activitystatement youreceive.Your Australianbusiness number(ABN).Check these datesand include amountsonly for the reportingperiod shown at thetop of each section.Quarterly reportersneed to choose anoption to completethe GST section oftheir activity statement(see pages 13–14).AWhen completing this form:■ print clearly using a black pen■ round down to whole dollars (do not show cents)■ if reporting a zero amount, print ‘0’ (do not use NIL)■ leave boxes blank if not applicable (do not use N/A, NIL)■ do not report negative figures or use symbols such as +, −, /, $.Goods and services tax (GST)Complete Option 1 OR 2 OR 3 (indicate one choice with an X)Option 1: Calculate GST and report quarterlyTotal sales.00(G1 requires 1A completed) G1 $ , ,Does the amount shownat G1 include GST?(indicate with X)YesExport sales G2 $ , , .00Other GST-free sales G3 $ , , .00 ORCapital purchases G10 $ , , .00Non-capital purchases G11 $ , , .00NoReport GST on sales at 1A and GST on purchases at 1Bin the Summary section over the pageOffi ce use onlyDocument IDABNForm due onPayment due onGST accounting methodContact phone numberAuthorised contact personwho completed the formBusiness activitystatementOption 2: Calculate GST quarterly and report annuallyORTotal sales(G1 requires 1A completed) G1 $ , , .00Does the amount shownat G1 include GST? Yes No(indicate with X)Report GST on sales at 1A and GST on purchases at 1Bin the Summary section over the pageOption 3: Pay GST instalment amount quarterlyG21 $Write the G21 amount at 1A in the Summary section over the page(leave 1B blank)OR if varying this amount, complete G22, G23, G24Estimated netGST for the year41890611G22 $ , , .00Varied amount payableG23 $ .00for the quarter , ,Write the G23 amount at 1A in the Summary section over the page(leave 1B blank)Reason code for variation G24This bar codeidentifies your activitystatement.These are importantdates:n when you haveto lodge, andn when you haveto make a payment.This is the method(cash or non-cash)you use to accountfor GST.You need to completeyour contact details.NAT 4189-06.2011 [JS 20300]BPAY ® : contact your fi nancial institution to makethis payment from your cheque or savings account.Quote biller code 75556 and your EFT code (shownon the front of the payment slip) as the customerreference number.Credit card: payments can be made online or by phone, acard payment fee applies. Go to www.ato.gov.au/howtopayor phone 1300 898 089.Direct credit: you can electronically transfer funds to theATO’s direct credit bank account using online banking facilities.Use BSB 093 003, Account number 316 385 and yourEFT code. Phone 1800 815 886 for assistance if required.Methods of paymentDirect debit: have your payment deducted from your fi nancialinstitution account (not credit cards). Phone 1800 802 308 toorganise a direct debit or to get further information.Mail payments: mail the payment slip together with your cheque ormoney order using the envelope provided. Please do not use pins orstaples. Do not send cash. See below for cheque information.Post office: payments can be made at any post offi ce by cash,cheque or EFTPOS (where available and subject to daily limits). A$3,000 limit applies to cash payments. Your payment slip must bepresented with your payment.Cheques/money orders should be for amounts in Australian dollarsand payable to ‘Deputy Commissioner of Taxation’. Cheques shouldbe crossed ‘Not Negotiable’. Payments cannot be made in personat any ATO site or shopfront.n4189-06-2011.indd 15/07/11 3:29 PM6

01 INTRODUCTIONEXAMPLE: A quarterly activity statement (back)PAYG tax withheldTotal salary, wages andother payments W1 $ , , .00PAYG income tax instalmentComplete Option 1 OR 2 (indicate one choice with X)Option 1: Pay a PAYG instalment amount quarterlyAmount withheld frompayments shown at W1Total amounts withheld(W2 + W4 + W3) W5 $ , , .00Write the W5 amount at 4 in the Summary section belowSummaryAmounts you owe the ATOGST on salesor GST instalment 1A $PAYG tax withheld 4 $PAYG income tax instalment 5A $W2 $ , , .00Amount withheld whereno ABN is quoted W4 $ , , .00Other amounts withheld(excluding any amountshown at W2 or W4)W3 $ , , .00Reason for varying (G24 & T4) Code ObligationChange in investments 21 PAYG onlyCurrent business structure not continuing 22 GST & PAYGSignifi cant change in trading conditions 23 GST & PAYGInternal business restructure 24 GST & PAYGChange in legislation or product mix 25 GST & PAYGFinancial market changes 26 GST & PAYGUse of income tax losses 27 PAYG only, , .00, , .00, , .00T7 $Write the T7 amount at 5A in the Summary section belowOR if varying this amount, complete T8, T9, T4T8 $ Estimated tax for the year , , .00Varied amount payablefor the quarter T9 $ , , .00Write the T9 amount at 5A in the Summary section belowORReason code for variationOption 2: Calculate PAYG instalment using income times ratePAYG instalment income T1 $ , , .00ORNew varied rate T3 . %Reason code for variationAmounts the ATO owes youGST on purchases 1B $ , , .00Do not complete 1B if using GST instalment amount (Option 3)Credit from PAYG income taxinstalment variationT4T2 %T1 x T2 (or x T3) T11 $ , , .00Write the T11 amount at 5A in the Summary section belowDeferred company/fund 7instalment$ , , .001A + 4 + 5A + 7 8A $ , , .001B + 5B 8B $, , .00Payment or refund?then write the result of 8A minus 8B at 9. This amount isYour payment or refund amountIs 8A more than 8B? Yes,payable to the ATO.(indicate with X)9then write the result of 8B minus 8A at 9. This amount is$ , , .00No,Do not use symbols such as +, –, /, $refundable to you (or offset against any other tax debt you have).HRS MINSDeclaration I declare that the in for ma tion given on this form is true and correct, and thatReturn this completed form toI am authorised to make this declaration. The tax invoice re quire ments have been met.Estimate the time taken to completethis form. Include the time taken tocollect any information.Signature Date / /Activity statement instructions are available from www.ato.gov.au or can be ordered by phoning 13 28 66. The ATO is authorised by the tax laws to collect this information toadminister those laws and may pass information to other government agencies. More information about privacy and access to your tax information is available from www.ato.gov.auT45B $, , .00This is the sectionwhere you summariseall your reportingobligations, andcalculate whetheryou are due a refundor need to pay anamount to us.This is where you signand date your activitystatement.Your payment advice– use this tear-offsection when makinga payment.n4189-06-2011.indd 25/07/11 3:29 PM7

01 INTRODUCTIONTAX INVOICESGenerally, you must hold a valid tax invoice to claim backany GST you are entitled to on purchases you make. However,even if you hold a document that states it is a tax invoice, youcannot claim a GST credit if the purchase did not include GSTin the price.You must have a tax invoice to claim a GST credit forpurchases that cost more than $82.50 (including GST).If you do not have a tax invoice, you must wait until youreceive one from your supplier before you claim the GSTcredit, even if this is in a later reporting period.You are not required to hold a tax invoice if the cost ofthe item is $82.50 (including GST) or less. There are someother circumstances where you are not required to hold atax invoice. For example, you do not need a tax invoice fortaxable importations, but you must have the relevant Customsdocumentation – usually referred to as the ‘Customs Entry’,‘Entry for Home Consumption’ or the ‘Informal ClearanceDocument’.For more information about tax invoices, referto Valid tax invoices and GST credits (NAT 12358).8

CHECK IF YOU NEEDADDITIONAL INSTRUCTIONS02There are several less common transaction types that are notcovered in these instructions. We have developed additionalinstructions that explain how to complete your activitystatement if you make these less common transactions.Commercial accommodation:n GST and commercial accommodation – completingyour activity statementFinancial supplies:n GST and financial supplies – completing your activitystatementGambling supplies:n Accounting for gambling supplies on your activity statementInsurance transactions:n GST and insurance transactions – completing youractivity statementLong-term non-reviewable contracts:n Accounting for long-term non-reviewable contractson your activity statementMargin scheme:n GST and the margin scheme – completing your activitystatement (NAT 10670)Offshore purchases:n GST and things purchased from offshore – completingyour activity statementProgressive or periodic sales and purchases:n GST and progressive or periodic sales and purchases– completing your activity statementSecond-hand goods:n GST and second-hand goods – completing youractivity statementSimplified GST accounting methods:n GST – completing your activity statement – businessnorms methodn GST – completing your activity statement – salespercentage method (NAT 16016)n GST – completing your activity statement – snapshotmethod (NAT 16014)n GST – completing your activity statement – stockpurchases method (NAT 16015)n GST – completing your activity statement – purchasessnapshot method (NAT 15978)Tax drivers:n Completing your activity statement – instructions for taxidrivers (NAT 11368)Vouchers:n GST and vouchers – completing your activity statementRefer also to:n Completing your annual GST returnn Making adjustments on your activity statements (NAT 11035)9

03CHOOSE A METHOD TO COMPLETEYOUR ACTIVITY STATEMENTYou must choose one of the following two methodsto complete your activity statement.CALCULATION WORKSHEET METHODThe calculation worksheet method is a step-by-step way ofcalculating the GST on your sales, purchases and importationsusing the GST calculation worksheet for BAS (NAT 4203). Youcomplete the worksheet using information from your accountsand then follow the instructions on the worksheet to transferthe amounts to the appropriate GST labels on your activitystatement.You’ll need to complete up to 20 labels on the calculationworksheet to calculate the amounts to be reported at 1A (GSTon sales) and 1B (GST on purchases). If you use the calculationworksheet method, the amounts you report must include GST.That is, the amounts you report at all labels must take intoaccount both:n any GST you are liable to pay on salesn the GST included in the price of purchases and importationsthat you make.You must indicate that your amounts include GST by markingthe 'Yes' box on your activity statement at G1 (total sales).A worked example of a completed calculationworksheet can be found on page 45.A copy of the worksheet is available on our websiteato.gov.au, refer to GST calculation worksheet for BAS(NAT 4203).We have also developed an interactive GST calculationworksheet for BAS (NAT 5107).10

03 CHOOSE A METHOD TO COMPLETE YOUR ACTIVITY STATEMENTIf you use the calculation worksheet method, you willneed to write amounts from your records onto the worksheet,make calculations where required, and transfer the amountsat the labels shown below to your activity statement.Depending on which reporting option you are using(or are required to use) you are not required to reportall of the GST labels indicated on each activity statement.GST calculation worksheet for BAS(If you want to use the calculation sheet method towork out GST amounts)Do not lodge the calculation sheet with your BASWe recommend you file it with a copy of the BAS to which it relatesGST amounts you owe the Tax Office from salesTax periodNameShow amountsat these labelson your BASG1 (total sales)G1G2Total sales (including any GST)Export salesG1 $ .00G2 $ .00G1 on the BASG2 on the BASG2 (export sales)G3G4Other GST-free salesInput taxed salesG3 $ .00G4 $ .00G3 on the BASG3 (other GST‐freesales)G5G2 + G3 + G4G5 $ .00G6Total sales subject to GST(G1 minus G5)G6 $ .00G7Adjustments (if applicable)G7 $ .00G8G9Total sales subject to GST after adjustments(G6 + G7)GST on sales (G8 divided by eleven)G8 $ .00G9 $ .001A in theSummary sectionof the BAS1A (GST on sales)GST amounts the Tax Office owes you from purchasesG10Capital purchases(including any GST)G10 $ .00G10 on the BASG10 (capital purchases)G11G12Non-capital purchases(including any GST)G10 + G11G11 $ .00G12 $ .00G11 on the BASG11 (non-capitalpurchases)G13Purchases for making input taxed salesG13 $ .00G14Purchases without GST in the priceG14 $ .00G15Estimated purchases for private useor not income tax deductibleG15 $ .00G16G13 + G14 + G15G16 $ .00G17Total purchases subject to GST(G12 minus G16)G17 $ .00G18Adjustments (if applicable)G18 $ .00G19G20Total purchases subject to GST afteradjustments (G17 + G18)GST on purchases (G19 divided by eleven)G19 $ .00G20 $ .001B in theSummary sectionof the BAS1B (GST on purchases)Now go to the GST section on the front of the BAS and follow the instructions onthe form. You will need to transfer amounts from this calculation sheet to the BAS.NAT 4203-4.200411

03 CHOOSE A METHOD TO COMPLETE YOUR ACTIVITY STATEMENTACCOUNTS METHODThe accounts method is a way of completing your activitystatement directly from your accounting records. To use thismethod, your records must be able to do all of the following:n readily identify GST amounts for your––sales––purchases––importationsn separately record any purchases or importationsthat were for either––private use––making input taxed salesn identify any GST-free or input taxed sales.An example of how to keep your records so thatyou can use the accounts method can be found onpages 44–45.If you use the accounts method, the amounts you report onyour activity statement at G1 (total sales) can be GST-inclusiveor GST-exclusive. You need to indicate whether the amountsinclude GST by marking either Yes or No with an ‘X’ in thebox under G1.G1 is the only label where you indicate a choice to reportGST‐exclusive or GST-inclusive amounts. However, if you areusing the accounts method you can also complete the otherGST labels as GST-inclusive or GST-exclusive.EXAMPLEIf you use the accounts method, you will need to get theseamounts from your accounting records and transfer themto your activity statement. Depending on which reportingoption you are using or required to use, not all of the GSTlabels indicated are required to be reported on each activitystatement.If you have your records set up in this way, you simply add upthe relevant GST amounts at the end of each reporting periodand report them at the appropriate labels on your activitystatement.Purchases and expenditureCash payments Capital purchases (incl. GST) Non‐capital purchases (incl. GST) GSTTOTALSG10G111BSales and incomeCash receipts Total sales (incl. GST) GST Export sales Other GST‐free salesTOTALSG1 1A G2 G3If you use the accounts method, you must completelabels G1, G2, G3, G10 and G11 for information purposesonly. If necessary, you can estimate the amounts on areasonably accurate basis from your accounts.12

n4189-06-2011.indd 1IDENTIFY YOUR REPORTINGAND PAYMENT PERIODA04Your reporting and payment period will be one of the following:n report and pay your GST monthlyn quarterly––option 1 report and pay your GST quarterly––option 2 pay your GST quarterly and report annually––option 3 pay a GST instalment quarterly and report annuallyn report and pay GST annually (you can only use this optionif you are voluntarily registered for GST).REPORT AND PAY GST MONTHLYYou must use this option if your turnover is $20 million ormore. You may also choose to use this option irrespectiveof your turnover.If you report and pay GST monthly, you must report amountsat the following labels on your activity statement each month:n G1 (total sales)n G2 (export sales)n G3 (other GST-free sales)n G10 (capital purchases)n G11 (non-capital purchases)n 1A (GST on sales)n 1B (GST on purchases).For more information about reporting and paying GSTmonthly, refer to Reporting and paying GST monthly.QUARTERLY OPTIONSIf you report and pay GST quarterly, you may choose option1 or 2. Your activity statement will contain a label next to eachof the options. Place an ‘X’ in the label next to the option youhave chosen.If you are eligible, and have elected to use option 3,your activity statement or instalment notice will containa pre‐printed instalment amount at G21.Option When 1 completing – Calculate, this report form: and pay GST quarterlyUnder ■ print this option, clearly you using must a black report pen amounts at the followinglabels■on round your down activity to statement whole dollars each (do quarter: not show cents)n G1 ■ (total if reporting sales) a zero amount, print ‘0’ (do not use NIL)n G2 ■ (export leave boxes sales) blank if not applicable (do not use N/A, NIL)n G3 ■ (other do not GST-free report negative sales) figures or use symbols such as +, −, /, $n G10 (capital purchases)n Goods G11 (non-capital and services purchases) tax (GST)n 1A (GST on sales)n 1B (GST on purchases).Complete Option 1 OR 2 OR 3 (indicate one choice with an X)Option 1: Calculate GST and report quarterlyTotal sales(G1 requires 1A completed) G1 $ , , .00Does the amount shownat G1 include GST?(indicate with X)Report GST on sales at 1A and GST on purchases at 1Bin the Summary section over the pageNAT 4189-06.2011 [JS 20300]YesExport sales G2 $ , , .00Other GST-free sales G3 $ , , .00Capital purchases G10 $ , , .00Non-capital purchases G11 $ , , .00NoOROR(GRinW(lOW(lBPAY ® : contact your fi nancial institution to makethis payment from your cheque or savings account.Quote biller code 75556 and your EFT code (shownon the front of the payment slip) as the customerreference number.Credit card: payments can be made online or by phone, acard payment fee applies. Go to www.ato.gov.au/howtopayor phone 1300 898 089.Direct credit: you can electronically transfer funds to theATO’s direct credit bank account using online banking facilities.Use BSB 093 003, Account number 316 385 and yourEFT code. Phone 1800 815 886 for assistance if required.Methods of payDirectinstitutiorganisMail pamoneystaplesPost ocheque$3,000presenChequeand pabe crosat any13

When completing this form:■ print clearly using a black pen04 ■ IDENTIFY round down YOUR to REPORTING whole dollars AND (do PAYMENT not show cents) PERIOD■ if reporting a zero amount, print ‘0’ (do not use NIL)■ leave boxes blank if not applicable (do not use N/A, NIL)■ do not report negative figures or use symbols such as +, −, /, $.Goods and services Offi use only tax (GST)Payment due onGST accounting methodContact phone numberAuthorised contact personwho completed the form00000ORORComplete Option 1 OR 2 OR 3 (indicate one choice 41890611 with an X)Option 1: Calculate GST and report quarterlyBusiness activitystatementTotal sales(G1 requires 1A completed) G1 $ , , .00Does the amount shownOption 2: Calculate GST quarterly and report annuallyOROption 2 at – G1 Calculate includeDocumentGST?IDand pay Yes GST quarterlyNo(indicate with X)and report annuallyUnder this option, you must ABN report amounts at the followingExport sales G2 $labels on your activity statement each , quarter: , .00Form due onn G1 (total sales)n 1A Other (GST GST-free on sales)G3 $ , , .00 ORPayment due onn 1B (GST on purchases).CapitalGSTpurchasesaccounting methodAt the end of the financialG10 $year we will , send you , .00an AnnualNIL) GST information Contact phone report, number on which you must report amounts+, −, /, at $. the Non-capital following Authorised purchases contact labels: person G11 $ , , .00n G2 (export who completed sales) the formReport GST on sales at 1A and GST on purchases at 1Bin n the G3 Summary (other GST-free section over sales) the pagen G10 (capital purchases)n G11 (non-capital purchases).Option 2: Calculate GST quarterly and report annuallyTotal sales(G1 requires 1A completed) G1 $ , , .00Does the amount shownat G1 include GST? Yes NoThe Annual GST (indicate return with will X) also be used to account for anydifference Report GST between on sales at your 1A and actual GST annual on purchases GST liability at 1B and thetotal in the of Summary your instalment section over amounts the page for the year.Option 3: Pay GST instalment amount quarterlyWrite the G21 amount at 1A in the Summary section over the page(leave 1B blank)OR if varying this amount, complete G22, G23, G24Write the G23 amount at 1A in the Summary section over the page(leave 1B blank)Total sales(G1 requires 1A completed) G1 $ , , .00 REPORT Reason code AND for variation PAY GST G24 ANNUALLYDoes the amount shownYou can only use this option if you are voluntarily registeredNAT 4189-06.2011 at G1 include [JS 20300] GST? Yes Nofor GST. That is, you are registered for GST and your turnover(indicate with X)is under $75,000 ($150,000 for non-profit bodies).Report GST on sales at 1A and GST on purchases at 1Bin the Summary section over the pageIf you are eligible and have elected to report and pay GSTMethods of paymentannually, you do not need to report or pay any GST duringBPAY ® : contact your fi nancial institution to make Direct debit: have your payment deducted from your fi nancialOption Option 3 – 3: thisPay payment GST a GST instalment from yourinstalment amount cheque quarterly or savings account. institution the year. account At the (not end credit of cards). the financial Phone year, 1800 802 you 308 must to reportQuote biller code 75556 and your amount EFT code (shown organise and pay a direct any debit amount or to due. get further You must information. complete the followingquarterly and on the report front of annually the payment slip) as the customer Mail labels payments: on your mail Annual the payment GST slip return: together with your cheque orUnder this option, reference you number. must G21 $ pay a GST instalment amount money n G1 order (total using sales) the envelope provided. Please do not use pins orworked Credit out card: by us payments (or varied can by be you) made each online quarter or by (or phone, twice-yearly a staples. Do not send cash. See below for cheque information.card payment fee applies. Go to www.ato.gov.au/howtopay n G2 (export sales)in Write special the G21 cases). amount At the at 1A end in the of Summary the financial section year over we the will page send Post office: payments can be made at any post offi ce by cash,or phone 1300 898 089.you (leave an 1B Annual blank) GST return, on which you must report amounts cheque n G3 or (other EFTPOS GST-free (where available sales) and subject to daily limits). ADirect credit: you can electronically transfer funds to the $3,000 limit applies to cash payments. Your payment slip must beat OR the if ATO’s varying following direct this labels:namount, credit bank complete account G22, using G23, online G24G10 (capital purchases)banking facilities. presented with your payment.n G1 Use (total BSB sales) 093 003, Account number 316 385 and yourn G11 (non-capital purchases)EFT code.EstimatedPhonenet1800 G22 815 $ 886 for assistanceGST for the year, if required. , .00 Cheques/money orders should be for amounts in Australian dollarsn G2 (export sales)n 1A (GST on sales)and payable to ‘Deputy Commissioner of Taxation’. Cheques shouldn G3 (other GST-free sales)nbe crossed 1B (GST ‘Not Negotiable’. on purchases). Payments cannot be made in personVaried amount payablen G10 (capital for the purchases)quarter G23 $ , , .00 at any ATO site or shopfront.n Write G11 the (non-capital G23 amount purchases) at 1A in the Summary section over the pagen (leave 1A (GST 1B blank) on sales)n 1B Reason (GST code on for variation purchases). G24G21 $Estimated net G22 $GST for the year, , .00For more information about reporting and payingVaried amount payableGST quarterly, for the quarter refer to G23 Quarterly $ GST options , (NAT , 4149). .00For more information about reporting and payingGST annually, refer to:n Report your GST once a year (NAT 12906)n Completing your annual GST return.n4189-06-2011.indd 15/07/11 3:29 PMs of paymentDirect debit: have your payment deducted from your fi nancialinstitution account (not credit cards). Phone 1800 802 308 toorganise a direct debit or to get further information.Mail payments: mail the payment slip together with your cheque ormoney order using the envelope provided. Please do not use pins orstaples. Do not send cash. See below for cheque information.Post office: payments can be made at any post offi ce by cash,cheque or EFTPOS (where available and subject to daily limits). A$3,000 limit applies to cash payments. Your payment slip must be. presented with your payment.Cheques/money orders should be for amounts in Australian dollarsand payable to ‘Deputy Commissioner of Taxation’. Cheques shouldbe crossed 14 ‘Not Negotiable’. Payments cannot be made in personat any ATO site or shopfront.

IDENTIFY YOUR ACCOUNTING BASIS05The amounts you report on your activity statement willdepend on the accounting basis you have chosen to use,(or are required or allowed to use).ACCOUNTING ON A CASH BASISIf you account for GST using a cash basis, you mustinclude your amounts of GST, GST credits, sales,purchases and importations in that reporting periodon your activity statement. You report the amounts thatyou have received or provided payment for in relation tothose amounts in that reporting period.These may not be the full amount of the sale or purchase price.Special rules apply in some circumstances.For more information about GST accounting methods,refer to Cash and non-cash accounting (NAT 3136).ACCOUNTING ON A NON-CASH BASIS(ACCRUALS)If you are using a non-cash (accruals) basis of accountingfor GST, you must include amounts of GST, GST credits,sales, purchases and importations in the reporting periodthat is the earlier of the reporting period in which you have:n received or provided any of the payment in relationto those amountsn issued or have been issued with an invoice in relationto those amounts.Special rules apply in some circumstances.You claim GST credits on importations in the samereporting period that you pay the GST to Customs, unlessyou are using the deferred GST scheme – refer to Easysteps to the deferred GST scheme.For more information about GST accounting methods,refer to Cash and non-cash accounting (NAT 3136).15

06CORRECTING AND ADJUSTING GSTIN YOUR CTIVITY STATEMENTSYou only need to read this section if you need to either:n make an adjustment to amounts you reported ona previous activity statementn correct a mistake you made when working out amountsyou reported on a previous activity statementn make an adjustment in your current activity statementas a result of making or receiving a third party payment.ADJUSTMENTSFrom time to time, you may need to make changes thatincrease or decrease the net amount of GST you are liableto pay for a reporting period. These changes are known asadjustments. Adjustments can be either:n increasing adjustments – which increase the net amountof GST you are liable to payn decreasing adjustments – which decrease the net amountof GST you are liable to pay.Adjustments can only be made on to your current activitystatement and are not the same as correcting errors ona previous activity statement (see ‘Correcting GST errors’on this page).For more information about making adjustments toyour activity statement, refer to Making adjustments on youractivity statements (NAT 11035).WHEN ADJUSTMENTS ARISEYou may have an adjustment if:n an event occurs that changes the price of a saleor a purchase (for example, you provide a discountto a customer or receive a rebate from a seller)n a taxable sale or creditable purchase you made iscancelled (for example, where goods are returned)n you write off a bad debt or you recover a previouslywritten‐off bad debtn your actual use of a purchase or importation forbusiness purposes differs from your intended usen you make or receive a third party payment.There are other circumstances in which you may need to makean adjustment, such as when you cancel your GST registrationor when you sell something you used to make financial supplies.For more information about making adjustments onyour activity statement, refer to Making adjustments on youractivity statements (NAT 11035).CORRECTING GST ERRORSWhen completing your activity statement, you may discoverthat you have made an error on a previous activity statementor left something out.Generally, to correct an error you must lodge an activitystatement revision form with us. You can revise an earlier activitystatement online or phone us on 13 28 66 to obtain an activitystatement revision form.In some cases you can correct the error or omission in the GSTsection of a later activity statement. Correcting an error on anactivity statement is different from making an adjustment. Forexample, you make an adjustment because the price of a saleor purchase changes, but you make a correction because youhave transposed figures incorrectly or accidentally left amountsoff your activity statement.For tax periods that start on or after 1 July 2012, a revisionmade to an activity statement is an amendment made to anassessment.For more information about correcting GST errors,refer to Correcting GST errors.16

HOW TO COMPLETEYOUR ACTIVITYSTATEMENTB

07COMPLETING THE GST LABELSON YOUR ACTIVITY STATEMENTIf you are using the accounts method, you only needto complete steps 1, 3, 5 and 6.If you are using the calculation worksheet method,you need to complete all steps 1 – 6.STEP 1 – COMPLETE SALES ON THE FRONTOF YOUR ACTIVITY STATEMENTStep 1 includes information about:n G1 total salesn G2 export salesn G3 other GST-free sales.G1 TOTAL SALESWhat are total sales?If you are using the calculation worksheet method, you reportat G1 total sales:n all GST-free sales you maken all input taxed sales you maken all taxable sales you make (including the GST).If you are using the accounts method, you report at G1total sales:n all GST-free sales you maken all input taxed sales you maken all taxable sales you make. Include the GST on the taxablesales only if you have chosen to report amounts thatinclude GST. If you have chosen to report GST-exclusiveamounts, you do not report the GST component on yourtaxable sales at G1.You can choose to exclude GST from G1 only if you are usingthe accounts method. You must include GST in amounts youreport at all labels on your activity statement if you are usingthe calculation worksheet method.The amount you report can vary depending on whichaccounting basis you use to complete your activity statement.Before completing G1:n check if you need to obtain any of the additionalinstructions that apply to your salesn remember to write ‘0’ at G1 if you have no salesin the reporting period.18

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTWhat you do and do not report at G1Report at G1: Do not report at G1:Total amounts for sales including:n goods or services you sell or supplyn sales of trading stockn the sale of business assets such as office equipmentor motor vehicles ( including trade-ins)n the sale, lease or rental of land and buildingsn memberships you have providedn earnings from financial supplies you make (for example,interest from bank accounts or lending money but notincluding the loan principal)n goods and services provided in return for governmentgrants and some private sector grantsn cancelled lay-by salesn forfeited customer security depositsn employee contributions for fringe benefits you haveprovidedn the sale of a debtor property that was made to satisfythe debt owed to you,(if the debtor otherwise wouldhave had to pay GST on the sale)n creating, granting, transferring, assigning or surrenderinga right (for example, royalties received)n entry into, or release from, an obligation to––do anything––refrain from an act––tolerate an act or situation (for example, agreeing aspart of the sale of your business to not operate a similarbusiness within a certain area)n providing goods or services in return for sponsorshipn the GST-inclusive market value of goods and services (orother things) that you receive in barter transactions, andn the GST-inclusive market value of anything you supply toan associate for no payment or sell to an associate forless than the GST-inclusive market value if––your associate is not registered, or required to beregistered, for GST––your associate has not received the thing either partlyor wholly for their business––the thing received by your associate relates partly orwholly to making sales that would be input taxed, or––the thing supplied is partly or wholly of a private ordomestic nature.You do not report the following at G1:n dividends you receiven donations and gifts you receiven private sales that are not related to your business,for example, selling your home or furniture from your homen salary and wages you receiven government pensions and allowancesn amounts you receive from hobby activitiesn any trust and partnership distributions you receiven tax refundsn receipts for services provided under a pay as you go(PAYG) voluntary agreement unless it is made to abusinessthat cannot fully claim GST credits for the servicesn business loans you receiven the amount on the sale of a luxury car that is the luxurycar tax (LCT) paid or payable by youn taxes, fees and charges that you have received that don’tinclude GSTn amounts received for sales not connected with Australia,unless a special rule makes the sales taxable, GST-freeor input taxed.n anything that is constituted by an insured settling a claimunder an insurance policy or in settling a claim under acompulsory third-party scheme (if you are not an operatorof such a scheme), for example, if you supply goods toan associate as part of settlement of a claim under aninsurance policy.Remember to remove GST from the amount you reportat G1 if you are using the accounts method and havechosen to show amounts as GST-exclusive.19

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTExport salesIf you have made a GST-free sale of exported goods andshow the free on board value (this is the value for Customs andBorder Protection purposes) of the export at G2 together withthe amount received for freight and insurance relating to thatexport at G3, then report at G1 the amount equal to the sumof the amounts shown at G2 and G3 for that export.For more information on G1 items, refer to:n GST for the racing industryn Bartering and barter exchanges (NAT 9748)n GST and Australian travel packagesn GST – travel agents and commissionsn GST and consignment salesn GST and gamblingn GST and the disposal of capital assetsn GSTD 2001/2 Goods and services tax: is the saleof goods by a lessor on expiry of a lease agreementa separate supply to the lease of the goods?n GSTR 2001/6 Goods and services tax: non-monetaryconsiderationn GSTR 2003/14 Goods and services tax: the GSTimplications of transactions between members ofa barter scheme conducted by a trade exchange.Other salesIf you conduct the following types of sales, there may be specialrules you need to consider when you report an amount at G1on your activity statement:n hire purchase salesn sales made through an agentn sales made as agent for a non-residentn coin-operated machine salesn sales for which part of the payment is received beforethe total payment is knownn sales made under a conditional contract or a contractsubject to retention clause.For more information about these types of sales, refer to:n Hire purchase, leasing and GSTn GST and the treatment of supplies made through agentsand other intermediariesn GSTR 2000/37 Goods and services tax: agencyrelationships and the application of the lawn GSTR 2000/29 Goods and services tax: attributing GSTpayable, input tax credits and adjustments and particularattribution rules made under section 29–25.Sales with special rulesSales of excisable goods in bondIf you have made a sale of excisable goods in bond, report thesale at G1. However, you should report at G1 the sale price plus110% of the excise duty that would have applied if the goodshad been entered for home consumption if you make a saleto either a purchaser who is:n not registered or required to be registered for GSTn registered or required to be registered for GST and then purchaser has not purchased the thing wholly or partlyfor their businessn thing purchased is wholly or partly of a private or domesticnature, orn thing purchased relates wholly or partly to making salesthat would be input taxed.For assistance with sales of goods in bond, phoneus on 13 28 66.20

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG2 EXPORT SALESThis section describes what you do and do not report at G2.Report at G2 your GST‐free export sales as listed below.Special rules apply in some circumstances.Remember that all amounts reported at G2 shouldalso have been reported at G1.What you do and do not report at G2Report at G2: Do not report at G2:The free on board value of export goods (that is,the value used for Customs purposes) if the exportis GST‐free because:n you export the goods from Australia within 60 days after either––the day you receive any payment for the sale––you issue an invoice for the sale before you receive anypayment (there are some circumstances in which thepurchaser can export the goods instead of you)n you sell goods and the payment was to be providedas instalments under a contract that requires the goodsto be exported and you exported them before or within60 days after––the day on which you received any of the final instalment, or––the day you issue an invoice for the final instalmentbefore you receive any of the final instalment (there aresome circumstances in which the purchaser can exportthe goods instead of you)n you sell an aircraft or ship that was paid for in instalmentsunder a contract that requires the aircraft or ship to beexported, but only if the purchaser exports it from Australiawithin 60 days after the earliest day in which at least one ofthe following occurs––you receive any of the final instalment of payment for the sale––you issue an invoice for that final instalment––you deliver the aircraft or ship to the purchaser or (at thepurchaser’s request) to another personn you sell an aircraft or ship, but only if the purchaser exportsit from Australia under its own power within 60 days aftertaking physical possession of itn you sell a ship, but only if––the ship is a new recreational boat––you or the purchaser export the ship within 12 months, and––the ship is used only for recreational/non-commercialpurposes while it is in Australian you sell aircraft or ships stores or spare parts for use,consumption or sale on international flights or voyages,whether or not part of the flight or voyage involves ajourney between places in AustraliaYou do not report at G2 amounts for:n GST-free services unless they relate to the repair,renovation, modification or treatment of goods fromoverseas and their destination is outside Australian freight and insurance to transport the goods outsideAustralia, or other charges imposed outside Australiain the free on board valuen international transport of goods or international transportof passengers.21

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTWhat you do and do not report at G2 continuedReport at G2: Do not report at G2:Amounts for the:n sale of goods used in the repair, renovation, modificationor treatment of other goods from outside Australia andtheir destination is outside Australia. The goods must beattached to (or become part of) the other goods or becomeunusable or worthless as a direct result of being used torepair, renovate, modify or treat the other goodsn repair, renovation, modification or treatment of goods fromoverseas whose destination is outside Australia after therepair, renovation, modification or treatmentn sale of goods that satisfy certain criteria and areexported by travellers as accompanied baggage.The above items should all be reported at G3 if theyare GST-free.Phone us on 13 28 66 for information on how to applyto extend the 60-day (12 months for new recreational boats)limit for export of your goods, ships or aircraft.For more information on GST-free exports, refer to:n GSTR 2002/6 Goods and services tax: exports of goods,items 1 to 4 of the table in Subsection 38-180(1) of theNew Tax System (Goods and Services Tax) Act 1999n GSTR 2003/4 Goods and services tax: stores and sparesfor international flights and voyagesn GSTR 2005/2 Goods and services tax: supplies ofgoods and services in the repair, renovation, modificationor treatment of goods from outside Australia whosedestination is outside Australian GST-free sales of new recreational boats – suppliers.22

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG3 OTHER GST-FREE SALESThis section describes what you do and do not report at G3.Report at G3 your other GST-free sales as listed below.Before completing G3:n if you haven’t already done so, check the list ofsupplementary activity statement instructions on page 9to see if you need any that apply to your salesn remember that all amounts reported at G3 should alsohave been reported at G1.What you do and do not report at G3Report at G3: Do not report at G3:You report at G3 all GST-free sales that you have madeincluding:n basic food, including food for human consumptionn most health and education servicesn beverages (including water) for human consumption listedin Schedule 2 of A New Tax System (Goods and ServicesTax) Act 1999n eligible childcare servicesn certain sales by eligible charities, gift deductible entities orgovernment schools where specific conditions are satisfied,including sales for a token amount of payment and rafflesand bingon sales made to a resident of a retirement village by aneligible charity of accommodation in a retirement villageor services relating to the supply of that accommodationand the provision of mealsn religious services provided by religious institutionsthat are integral to practicing that religionn sales of going concerns - certain conditions must besatisfied including that you and the purchaser have agreedin writing that the sale is of a going concern and you supplyall things necessary for the continued operation of thebusinessn the first sale of precious metal after its refining by,or on behalf of, the seller, and––it was refined by a precious metal refiner, and––the sale was made to a dealer in precious metaln sales of water (except if it is provided in, or transferred into,containers with a capacity of less than 100 litres)n certain sewerage services including emptying of septictanks and storm water drainingn international transport and mail that meets certain criteria(phone 13 28 66 for more information)n certain services in arranging international travel.You do not report the following at G3:n export amounts - these are shown at G2n basic food, including food for human consumption that is––for consumption on the premises from which it is sold(for example, cafes and restaurants)––hot takeaway food––a food type listed in Schedule 1 of A New Tax System(Goods and Services Tax) Act 1999 (certain preparedfood, confectionery, savoury snacks, bakery products,ice cream foods and biscuits) or foods that are acombination of foods where at least one food type inthe combination is listed in Schedule 1n sales of water that are provided in, or transferred into,containers with a capacity of less than 100 litres.23

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTFood retailers may be eligible to use a simplifiedaccounting method to estimate their sales and purchasesthat are GST-free. For more information on GST and food,refer to:n Simplified GST accounting methods for food retailers(NAT 3185)n GST food guide (NAT 3338)n GST and food – schedules 1 and 2n Simpler GST accounting for the food and groceryindustry, which explains how to use the EANnetbarcoding and numbering system to find out whichfood and groceries have GST included in the price.For more information about other GST-free sales, refer to:n GST and medical servicesn GST and other health servicesn Selling taxi licences and platesn GST and LCT on cars you buy – people with disabilitiesn Tax basics for non-profit organisations (NAT 7966)n GSTR 2002/5 Goods and services tax: sale ofgoing concerns.24

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTSTEP 2 – CALCULATING SALES ONTHE CALCULATION WORKSHEETStep 2 includes information about:n G4 input taxed salesn G5 (G2+G3+G4)n G6 total sales subject to GSTn G7 adjustmentsn G8 total sales subject to GST after adjustmentsn G9 GST on sales.If you have chosen to use the accounts method, youdo not need to complete step 2. Go to step 3 on page 27.G4 INPUT TAXED SALESThis section describes what you do and do not report at G4.Report at G4 your input taxed sales as listed below.Before completing G4 on your activity statement:n if you haven’t already done so, check the list ofsupplementary activity statement instructions on page9 to see if you need to obtain any additional instructionsthat apply to your specific types of salesn remember that you don’t report G4 on your activitystatement, but you do need to show it in your records(it is used to calculate the amount that you report at1A on your activity statement)n remember that all amounts reported at G4 on theworksheet should also have been reported at G1.What you do and do not report at G4Report at G4: Do not report at G4:Report at G4, amounts from making input taxedsales including:n financial suppliesn renting or leasing residential premises that are to be usedpredominantly for residential accommodation (that is, theyare not commercial residential premises) as long as thelease is not a long-term leasen sales of residential premises that are to be usedpredominantly for residential accommodation (that is,they are not commercial residential premises or newresidential premises)In some circumstances you may be able to elect forthe following sales to be input taxed:n providing long-term accommodation to an individualin commercial residential premisesn food sales made by school tuckshops and canteensYou do not report the following at G4:n long-term leases of residential premisesn new residential premises that were not used for residentialaccommodation before 2 December 1998. This includespremises that have been substantially renovated – theseshould be reported at G1For more information, refer to:n GST and property (NAT 72957)n Fundraisingn GSTR 2003/10 Goods and services tax: whatis a precious metal for the purposes of GST?n GSTB 2001/2 Accommodation in caravan parksand camping groundsn GSTB 2003/2 Long-term accommodation at marinas.25

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG5 SUBTOTAL (G2 + G3 + G4)Add together the amounts you have reported at G2 (exportsales), G3 (other GST-free sales) and G4 (input taxed sales).This s the total of your GST-free and input taxed sales.G6 TOTAL SALES SUBJECT TO GSTSubtract the amount reported at G5 from G1 (total sales).This is the total of your taxable sales.G7 ADJUSTMENTSReport any increasing adjustments you have at G7(see 'Adjustments' on page 16).For more information about making an adjustmenton your activity statement, refer to Making adjustmentson your activity statements (NAT 11035).G8 TOTAL SALES SUBJECT TO GST AFTERADJUSTMENTSAdd the amounts you have reported at G6 and G7(adjustments). This is the total of your taxable salesafter adjustments.G9 GST ON SALESDivide G8 by 11. Transfer this amount to 1A (GST on sales)on your activity statement.26

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTSTEP 3 – COMPLETE PURCHASES ON THEFRONT OF YOUR ACTIVITY STATEMENTThis section provides information on:n what we mean when we say capital purchasesn what you do and do not report at G10n capital purchase for $1,000 or less.G10 CAPITAL PURCHASESWhat are capital purchases?Capital purchases are capital items you purchase including:n business assets you purchase such as machinery, cashregisters, computers and cars (these items are also referredto as plant and equipment)n land and buildings.These assets can be brand new or second-hand, and maybe imported.Things that are not capital items include:n trading stockn normal running expenses such as stationery and repairsn equipment rentals or leases.If you haven’t already done so, check the list ofsupplementary activity statement instructions on page 9to see if you need to obtain any additional instructions thatapply to your specific types of purchases.What you do and do not report at G10Report at G10: Do not report at G10:You report the following at G10:n amounts for capital items such as––machinery and equipment––cash registers––office furniture––computers––carsn the GST-inclusive market value of any capital item youreceive from your associate for no payment or for lessthan the GST-inclusive market value, if either––you have not received the thing wholly or partlyfor your business––the thing received is wholly or partly of a privateor domestic nature––the thing received relates wholly or partly to makingsales that would be input taxed.n the amount paid or payable for a purchase or importationof a car that exceeds the car limit for the relevant financialyear, only if you are specifically entitled to quote an ABNfor the purchase or importation.You do not report the following at G10:n purchases and importations that are not relatedto your businessn the stamp duty component of any capital purchasesn the amount paid or payable for a purchase or importationof a car that exceeds the car limit for the relevantfinancial yearn anything that is constituted by an insurer settlinga claim under an insurance policy or by an operatorof a compulsory third-party scheme settling a claimunder a compulsory third-party scheme (if you arenot an operator of such a scheme).27

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTRemember to remove GST from the amount you reportat G10 if you are using the accounts method and havechosen to show your amounts as GST-exclusive.If you have imported capital items for your business, referto ‘Purchases and importations with special rules’ on page 30for information about other amounts to report at G10.For more information about purchases of capitalitems, refer to:n GST and motor vehiclesn GST and the disposal of capital assetsn GST credits for businessFor more information about quoting your ABN onan importation of a luxury car, refer to Luxury car tax(NAT 3394).Purchases for $1,000 or lessG10 (and G11) require you to separately report your capital andnon-capital purchases. If you already record these purchasesseparately in your records, use this existing breakdown to fillin the G10 and G11 labels. If you do not record capital andnon‐capital purchases separately and your GST turnover isexpected to be less than $1 million then:n you only need to record capital items costing more than$1,000 at G10 (capital purchases)n capital and non capital items costing $1,000 or less canbe recorded at G11 (non-capital purchases).28

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG11 NON-CAPITAL PURCHASESThis section provides information about:n what we mean when we say non-capital purchasesn what you do and do not report at G11n purchases and importations with special rules.What are non-capital purchases?Non-capital purchases may include:n trading stockn normal running expenses such as stationery and repairs,or equipment rentals or leases.If you haven’t already done so, check the list ofsupplementary activity statement instructions on page 9to see if you need to obtain any additional instructions thatapply to your purchases.What you do and do not report at G11Report at G11: Do not report at G11:You report the following at G11:n all amounts for your business purchases (other than thosereported at G10) relevant to the reporting period such as––most business purchases, including services and stockbought for resale––the price of any insurance premiums related to yourbusiness (except for third-party motor insurancepremiums relating to a period of cover starting before1 July 2003) less the amount of stamp duty––purchases paid for by an employee, agent, officeror partner that you have reimbursed in specifiedcircumstances––capital items costing $1,000 or less that have notbeen reported at G10––intangible supplies purchased from off-shore thatare of a non-capital naturen the GST-inclusive market value of any non-capital itemyou receive from your associate for no payment orfor less than the GST-inclusive market value, if eithern you have not received the thing wholly or partly foryour business––the thing received is wholly or partly of a privateor domestic nature––the thing received relates wholly or partly tomaking supplies that would be input taxed.You do not report the following at G11:n purchases and importations that are not related toyour businessn an amount for a purchase or importation of a car thatexceeds the car limit for the relevant financial year, unlessyou are specifically entitled to quote an ABN in relationto the supply to which the purchase relates or in relationto the importationn the price of any third-party motor insurance premiumsrelating to a period of cover starting before 1 July 2003n anything that is constituted by an insurer settling aclaim under an insurance policy or by an operator ofa compulsory third-party scheme settling a claim undera compulsory third-party scheme (if you are not anoperator of such a scheme)n salary and wages you payn superannuation contributions you pay for employees.For more information about non-capital purchases,refer to:n Employee reimbursements and GSTn GSTB 2000/2 How to claim input tax credits forcar expensesn GSTB 2001/3 Simplified calculation of input tax creditsfor caravan park operators.29

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTPurchases and importations with special rulesImportationsFor non-taxable importations, report at G10 or G11(depending on whether the goods are capital or non‐capitalitems) the amounts you have paid, or are liable to pay, for allof the following:n the goods importedn the international transport of the goods to their placeof consignment in Australian insurance of the goods for that transport.For taxable importations, report at G10 or G11 (dependingon whether the goods are capital or non-capital items) either:n the sum of the followingn the Customs value of the goods importedn the amounts you have paid or are liable to payn for the international transport of the goods to their place ofconsignment in Australia (if not included in the Customs value)n to insure the goods for that transport (if not included in theCustoms value)n any Customs duty you are liable to pay in relation to theimportation of the goodsn any wine tax you are liable to pay in relation to the local entryof the goodsn the GST you are liable to pay on the taxable importations, orn the GST you are liable to pay on the imports, multiplied by 11.If you pay additional GST to Customs because GST wasunderpaid on a previous importation of a capital or non-capitalitem, report at G10 or G11 the amount of GST paid, multipliedby 11. This also applies if the additional GST is deferred underthe deferred GST scheme.Purchases of excisable goods in bondIf you purchase excisable goods in bond, report the purchaseat G10 or G11 (depending on whether the goods are capitalor non-capital items). However, do not report the actual priceyou have paid or are liable to pay for the purchase if any of thefollowing occur – your purchase:n was not wholly or partly for your businessn relates wholly or partly to making sales that would beinput taxedn is wholly or party of a private or domestic nature.Instead you must do the following:n work out how much GST you are liable to pay onthe goods you have purchasedn multiply this amount by 11n report this amount at G10 or G11.Remember to remove GST from the amount you reportat G11 if you are using the accounts method and havechosen to show your amounts as GST-exclusive.For more information about importing goods, refer to:n GST and imported goodsn Easy steps to the deferred GST scheme.30

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTSTEP 4 – CALCULATING PURCHASES USINGTHE CALCULATION WORKSHEETStep 4 includes information about:n G12 (G10+G11)n G13 purchases for making input taxed sales - fringe benefitsn G14 purchases without GST in the pricen G15 estimated purchases for private use or not incometax deductible - annual private apportionmentn G16 (G13+G14+G15)n G17 total purchases subject to GSTn G18 adjustmentsn G19 total purchases subject to GST after adjustmentsn G20 GST on purchases.G12 SUBTOTAL (G10 + G11)Add the amounts reported at G10 (capital purchases) and G11(non-capital purchases). This is the total of your purchases andimportations.If you have chosen to use the accounts method, youdo not need to complete step 4. Go to step 5 on page 37.Remember, if you use the calculation worksheet method,amounts reported at all labels must include GST.31

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG13 PURCHASES FOR MAKING INPUTTAXED SALESBefore completing G13:n if you haven’t already done so, check the list ofsupplementary instructions on page 9 to see if youneed to obtain any additional instructions that applyto your purchases and importationsn remember not to report G13 on your activity statement,but you need to show it in your records – it is usedto calculate the amount that you report at 1B onyour activity statementn remember that all amounts reported at G13 on theworksheet should also have been reported at G10or G11.What you do and do not report at G13Report at G13: Do not report at G13:You do report at G13:n amounts for purchases and importations, but only for thepart or amount that relates to making sales that would beinput taxed sales (see G4 for examples of input taxed sales)n if you received anything from an associate for no payment,or you have paid less than the full GST-inclusive marketvalue, you mustn work out what portion of it relates to making salesthat would be input taxedn report that portion of its full GST-inclusive market valueat G13.You do not report at G13 amounts for purchases orimportations that relate to making financial supplies andyou do not exceed the financial acquisitions threshold.For more information about the financialacquisitions threshold:n see 'financial acquisitions threshold' in 'Definitions'on page 48n refer to GSTR 2003/9 Goods and services tax:financial acquisitions threshold.32

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTFringe benefitsYou may not be entitled to a GST credit for a purchaseor importation that is both:n provided as a fringe benefitn wholly or partly relating to making sales that are input taxed.For purchases and importations that fall into this category,you must do both of the following:n report the entire purchase price at G13, or the entireamount you reported for the importation at G10 or G11n not report an amount in relation to the purchaseor importation at G14 or G15.For more information, refer to GSTR 2001/3 Goodsand services tax: GST and how it applies to supplies offringe benefits.33

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG14 PURCHASES WITHOUT GST IN THE PRICEBefore completing G14:n if you haven’t already done so, check the list ofsupplementary activity statement instructions on page9 to see if you need to obtain any additional instructionsthat apply to your particular types of purchases orimportationsn remember you do not report G14 on your activitystatement, but you need to show it in your records– it is used to calculate the amount that you reportat 1B on your activity statementn remember that all amounts reported at G14 onyour worksheet should also have been reportedat G10 or G11.G15 ESTIMATED PURCHASES FOR PRIVATE USEOR NOT INCOME TAX DEDUCTIBLEBefore completing G15:n if you haven’t already done so, check the list ofsupplementary activity statement instructions on page9 to see if you need to obtain any additional instructionsthat apply to your purchases and importationsn remember, you do not report G15 on your activitystatement, but you need to show it in your records (asit is used to calculate the amount that you report at 1Bon your activity statement)n remember that all amounts reported at G15 on yourworksheet should also have been reported at G10or G11.What you do and do not report at G14Report at G14:You report at G14:n amounts for purchases and importations that didnot have GST included in the price. This includes salesto you that were––GST-free or input taxed––made by an entity not registered for GST––not connected with Australia (and not taxable)––non-taxable importations––intangible supplies purchased from off-shore thatare not subject to a GST reverse charge.n payments of Australian taxes, fees and charges whereGST was not included in the price charged.34

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTWhat you do and do not report at G15Report at G15:n amounts for purchases and importations that are of aprivate or domestic nature – if a purchase or importationwas only partly of a private or domestic nature, you must––work out what amount of the purchase or importationwas of a private or domestic nature––only report that amount at G15n anything you received from an associate for no paymentor for less than the GST-inclusive market value – in thesecases you must––work out what portion of the thing is of a privateor domestic nature––report that amount of the GST-inclusive market valueof the thing at G15n purchases or importations that are not income taxdeductible, including––expenses for maintaining your family––penalties––uniforms (if they are not compulsory or protectiveclothing)––entertainment expenses, except where the expensesare incurred in providing a fringe benefit––travel expenses for relatives, except where the expensesare incurred in providing a fringe benefit––recreational club expenses, except where the expensesare incurred in providing a fringe benefit––expenses for leisure facility or boat, except where theexpenses are incurred in providing a fringe benefit––expenses you incur under an agreement for providingnon-deductible non-cash business benefits (up to thearm’s length value of that benefit).n any portion of the following purchases and importationsthat are non-deductible for income tax purposes––expenses incurred when providing meal entertainmentif for fringe benefit tax purposes you use either the50/50 split method or the 12-week register method todetermine the taxable value of meal entertainment fringebenefits––entertainment facility leasing expenses if for fringe benefittax purposes, you use the 50/50 split method in relationto these expensesn if you are eligible and have made a valid annualapportionment election, report at G15 amounts for yourprivate portion of purchases and importations subjectto the election.For more information about annual privateapportionment, refer to GST and annual privateapportionment.You report amounts for all these purchases orimportations at G15 even if you are an income taxexempt entity.For more information, refer to:n GSTA TPP 051 Goods and services tax: To what extentis an acquisition creditable if an employer uses the 50/50split method for entertainment fringe benefits?n GSTR 2001/3 Goods and services tax: GST and howit applies to supplies of fringe benefits.35

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTG16 SUBTOTAL (G13 + G14 + G15)Add the amounts reported at G13 (purchases for makinginput taxed sales), G14 (purchases without GST in the price)and G15 (estimated purchases for private use or not incometax deductible). This amount represents the portion of yourpurchases and importations that you cannot claim a GSTcredit for.G17 TOTAL PURCHASES SUBJECT TO GSTSubtract G16 from G12. This amount represents the portionof your purchases and importations that you can claim a GSTcredit for.G18 ADJUSTMENTSReport any decreasing adjustments you have at G18.G19 TOTAL PURCHASES SUBJECT TO GST AFTERADJUSTMENTSAdd G17 (total purchases subject to GST) and G18(adjustments).G20 GST ON PURCHASESDivide G19 (total purchases subject to GST after adjustments)by 11. Transfer this amount to 1B (GST on purchases) on youractivity statement.36

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENTSTEP 5 – COMPLETE THE SUMMARY ONTHE BACK OF YOUR ACTIVITY STATEMENT1A GST ON SALES OR GST INSTALMENTYou report at 1A the total amount of GST (including any relevantadjustments) you are liable to pay us for the reporting period.The amount you report and pay will depend on the reportingand paying option you use.Monthly, quarterly and annually Quarterly instalments (option 3)If you report and pay GST monthly, or quarterly using option1 or option 2, or you use the annual reporting option (see‘Identify your reporting and payment period’ on page 13)you must complete 1A on your activity statement.If you have no GST on sales or adjustments for thereporting period, write ‘0’.If you report and pay GST quarterly using option 3 –the instalment option, you must report at 1A your GSTinstalment amount pre-printed at G21. If you’ve varied thisamount, take the figure from G23 and report this amountat 1A.If you use option 3, you must also lodge an Annual GSTreturn at the end of the financial year and account for anydifference between your total GST instalments for the yearand your actual GST liability. In your Annual GST return, youmust report the total amount of GST on your sales plus anyrelevant adjustments at 1A.Accounts methodIf you use the accountsmethod, you can take theamount to be shown at 1Adirectly from your records.Calculation worksheetmethodIf you use the calculationworksheet method,transfer the amount fromG9 on your calculationworksheet. To do this,you will need to completeadditional labels on yourcalculation worksheet. Fordetails of what to report ateach of these labels, see‘Completing the GST labelson your activity statement’on page 18.Accounts methodWhen completing theAnnual GST return, if youuse the accounts method,you can take this amountdirectly from your records.Calculation worksheetmethodWhen completing theAnnual GST return, ifyou use the calculationworksheet method,transfer the amount fromG9 on your calculationworksheet. To do this,you will need to completeadditional labels on yourcalculation worksheet. Fordetails of what to report ateach of these labels, see‘Completing the GST labelson your activity statement’on page 18.If you use option 2, at the end of the financial year youmust also lodge an Annual GST information report to reportannual amounts for export sales (G2), other GST‐free sales(G3), capital purchases (G10) and non‐capitalpurchases (G11).For more information about input taxed sales:n refer to ‘GST credits and income tax deductions’in GST for small business (NAT 3014)n see ‘G4 Input taxed sales’ on page 25.37

07 COMPLETING THE GST LABELS ON YOUR ACTIVITY STATEMENT1B GST ON PURCHASESYou report at 1B the total amount of GST credits (includingany relevant adjustments) you are eligible to claim from us.The amount you report will depend on the reporting andpaying option you use.Monthly, quarterly and annually Quarterly instalments (Option 3)If you report and pay GST monthly or quarterly using option1 or option 2, or you use the annual reporting option (see‘Identify your reporting and payment period’ on page 13),you must complete 1B on your activity statement.If you have no GST on purchases or adjustments for thereporting period, write ‘0’Accounts methodIf you use the accountsmethod, you can take theamount to be shown at 1Bdirectly from your records.Calculation worksheetmethodIf you use the calculationworksheet method,transfer the amount fromG20 on your calculationworksheet. To do this,you will need to completeadditional labels on yourcalculation worksheet. Fordetails of what to report ateach of these labels, see‘Completing the GST labelson your activity statement’on page 18.If you use option 3 – the instalments option, you won’t needto complete 1B on your quarterly activity statements but youwill need to complete this label on your Annual GST returnat the end of the financial year.Accounts methodWhen completing yourAnnual GST return, if youuse the accounts method,you can take this amountdirectly from your records.Calculation worksheetmethodWhen completing yourAnnual GST return, ifyou use the calculationworksheet method,transfer the amount fromG20 on your calculationworksheet. To do this,you will need to completeadditional labels on yourcalculation worksheet. Fordetails of what to report ateach of these labels, see‘Completing the GST labelson your activity statement’on page 18.If you use option 2, you must also lodge an AnnualGST information report at the end of the financial yearto report annual amounts for export sales (G2), otherGST‐free sales (G3), capital purchases (G10) andnon‐capital purchases (G11).38

STEP 6 – CHECK YOUR COMPLETEDACTIVITY STATEMENTHave you:n put ‘X’ in the label next to the GST option you havechosen (where applicable)n filled in the GST labels that apply to youn checked that your calculations are accuraten checked that you have transferred amounts correctlyfrom your recordsn put ‘X’ in the relevant box under G1 to indicate whetherthe amounts at G1 are GST-exclusive or GST-inclusiven provided your contact phone number?You may also need to:n complete any other sections that apply to you and transferthe totals to the summary sectionn calculate if you must make a payment or if you are eligiblefor a refundn complete the tear-off payment slip on the bottomn complete the payment or refund details.You must:n sign and date your activity statementn lodge your original activity statement by the due dateshown on the front, andn pay any amounts you owe by the due date shownon the front.Record keepingYou should keep a copy of your activity statement and therecords used to prepare it for five years after they are prepared,obtained or the transactions completed, or the period of reviewwhichever is the later. The records should be in writing andin English. If they are not in a written form (such as magnetictape or computer disk), records must be in a form that isreadily accessible and easily converted into English.If you used a calculation worksheet to complete your GSTlabels, do not forward this document to us with your activitystatement. You must keep this document with your otherrecords used to prepare the activity statement39

40

AFTER COMPLETINGYOUR ACTIVITYSTATEMENTC

08LODGING YOUR ACTIVITY STATEMENTAND PAYING USThe due date for lodging and paying is pre-printed at the topright‐hand corner of your activity statement. You can lodge andpay electronically or by mail but you need to do this on time toavoid interest and penalties.Even if you have no amounts to report for the periodor you are having difficulty paying, it’s important to makesure we receive your activity statement by the due date.If you have nothing to report at any label you can phone13 72 26 and use our automated lodgment service.IF YOU CAN’T LODGE AND PAY ON TIMEYou must phone us on 13 28 66 to check whetheralternative arrangements can be made.You must still lodge your activity statement by the due date,even if you can’t pay on time. A penalty may be applied ifyou fail to lodge on time, and a general interest charge willbe applied to any amount not paid by the due date.HOW TO LODGE AND PAYElectronicallyYou can lodge electronically:n online via the Business Portaln online via Standard Business Reporting (SBR)enabled softwaren online via the electronic commerce interface (ECI)n through your registered tax agent.Payments can be made by:n BPAY ® (Biller code 75556) – use your financial institution’sBPAY facility to pay by phone or internet (the EFT code onyour activity statement is the BPAY reference number)n credit card – make a credit card payment using a currentVisa, MasterCard or American Express card. You will needyour ATO electronic funds transfer (EFT) code or yourpayment reference number (PRN) code which is printeddirectly above the barcode on your payment slip. To makethe payment you use the Government EasyPay website ortelephone servicen direct credit – initiate an electronic payment using internetbanking or a banking software packagen direct debit – you will need to complete and send a Directdebit request form (NAT 2284) to us. You can obtain thisform from your tax agent, from our web site or by phoning13 11 42 between 8.00am and 6.00pm Monday to Friday.Business Portal users can also send requests to us via theportal’s message facility.® Registered to BPAY Pty Ltd ABN 69 079 137 518For more information about credit card payments, referto the terms and conditions on our website at How to pay.For more information about direct credit or BPAYn phone 1800 815 886, orn email payment@ato.gov.auFor more information about direct debit:n phone 13 11 42, orn email eft-information@ato.gov.auFor more information about how to lodge your activitystatement electronically, you can:n visit our website at ato.gov.au/onlineservicesn phone 1300 139 051.42

08 LODGING YOUR ACTIVITY STATEMENT AND PAYING USPost officeYou can also pay at Australia Post outlets using your originalpayment advice form. Payments can be made with cash(a $3,000 limit applies), money order or cheque. EFTPOSis available at most Australia Post outlets for savings andcheque accounts only.To order additional or replacement payment advice forms,phone 13 72 26.If you make a payment at Australia Post, or you payby electronic means, you must still send your completedactivity statement to us either by mail or electronically.By mailMail your original completed activity statement to arrive by thedue date, with your cheque, using the pre-addressed envelopeprovided to:n If you are in WA, SA, NT, TAS or VICAustralian Taxation OfficeLocked Bag 1936Albury NSW 1936n If you are in NSW, ACT or QLDAustralian Taxation OfficeLocked Bag 1793Penrith NSW 1793Cheques should be made payable to the ‘Deputy Commissionerof Taxation’ and crossed ‘Not negotiable’. Don’t attach yourcheque with pins or staples, and don’t send cash.It’s important that you send your original activity statement,not a copy or a version generated from a commercial softwarepackage. If you use a commercial software package, make sureyou transfer the information onto your original statement.EXPECTING A REFUNDGenerally, if you have an ABN, refunds can only be paid directlyinto your nominated financial institution account, so it’s essentialthat we have your correct account and BSB numbers. Yournominated account must be at a branch of the institutionin Australia.If you don’t have an ABN, your refund will be paid by cheque.Occasionally, you may not receive your refund or the refund youreceive may be less than you expected. This may be because:n we have kept part or all of your refund to apply it against atax debt that you owe us – this process is known as offsettingn we may use a credit balance from one of your other taxaccounts to pay a tax debt you owe and subsequently receivea payment from you in relation to that tax debt. As a result,your account may be placed in credit and your paymentbecomes what is called a voluntary payment, and is notautomatically refundedn we have held your refund because you haven’t nominateda bank account for us to pay your refund into, or the bankaccount details you provided are incorrect or incompleten we have held your refund because you have not lodgedone or more of your activity statementsn we have held the refund because we need to check,or verify with you some details shown on your return oractivity statement.For more information about expecting a refund,refer to our website at Where is my refund?Phone us on 13 28 66 if you need to change your financialinstitution account details or to enquire about your refund.You’ll need to provide proof of identity.43

09EXAMPLE OF RECORD KEEPINGSam’s record keepingSam reports his GST on a quarterly basis and accountson a cash basis. Sam has chosen to use the calculationworksheet method to complete his activity statement. Hisrecord of transactions for the quarter ended 31 Decemberis set out in his cash receipts and payment book.Sam is entitled to claim GST credits for purchases he hasmade relating to making financial supplies (deriving interestand the sale of shares) because his purchases do notexceed the financial acquisitions threshold.44

09 EXAMPLE OF RECORD KEEPINGSam’s calculation worksheetSam uses the information from his records to completehis calculation worksheet.GST calculation worksheet for BAS(If you want to use the calculation sheet method towork out GST amounts)Tax periodName1-10-08 to 31-12-08Sam’s BusinessDo not lodge the calculation sheet with your BASWe recommend you file it with a copy of the BAS to which it relatesG1G2G3G4G5G6GST amounts you owe the Tax Office from salesTotal sales (including any GST)Export salesOther GST-free salesInput taxed salesG2 + G3 + G4Total sales subject to GST(G1 minus G5)45,00052,0002,413G2 $ .00G3 $ .00G4 $ .00426,758G1 $ .0099,413327,345G5 $ .00G6 $ .00Show amountsat these labelson your BASG1 on the BASG2 on the BASG3 on the BASG7Adjustments (if applicable)G7 $ .00G8G9Total sales subject to GST after adjustments(G6 + G7)GST on sales (G8 divided by eleven)327,345G8 $ .0029,758G9 $ .001A in theSummary sectionof the BASGST amounts the Tax Office owes you from purchasesG10G11G12Capital purchases(including any GST)Non-capital purchases(including any GST)G10 + G113,300G10 $ .0043,122G11 $ .0046,422G12 $ .00G10 on the BASG11 on the BASG13Purchases for making input taxed salesG13 $ .00G14Purchases without GST in the price5,854G14 $ .00G15G16Estimated purchases for private useor not income tax deductibleG13 + G14 + G15G15 $ .005,854G16 $ .00G17Total purchases subject to GST(G12 minus G16)40,568G17 $ .00G18Adjustments (if applicable)G18 $ .00G19G20Total purchases subject to GST afteradjustments (G17 + G18)GST on purchases (G19 divided by eleven)40,568G19 $ .003,688G20 $ .001B in theSummary sectionof the BASNow go to the GST section on the front of the BAS and follow the instructions onthe form. You will need to transfer amounts from this calculation sheet to the BAS.NAT 4203-4.200445

09 EXAMPLE OF RECORD KEEPINGAOffi ce use onlyWhen completing this form:■ print clearly using a black statementpentax withheldPAYG income tax■ roundinstalmentdown to whole dollars (do not show cents)■ if reporting a zero amount, print ‘0’ (do not use NIL)Complete Option 1 OR■ leave2 (indicateboxesoneblankchoiceifwithnotX)alary, wages andapplicable (do not use N/A, NIL)other paymentsPAYG Sam's W1 tax activity $ withheld statement , , .00Sam PAYG has income purchases Document tax including instalmentIDOption 1: Pay a $3,300 for a cash register shown■ PAYG do instalment not report amount negative quarterly figures or use symbols such as +, −, /, $From his calculation worksheet, Sam has total sales ofat G10 and $43,122 in other purchases shown at G11 of theABNnt withheld $426,758, from which includes $45,000 Customs free on board calculation Complete Option worksheet. 1 OR 2 (indicate He writes one the choice figure with 3,300 X)Total salary, W2 wages $ at G10, andnts shown at W1andGoods and services tax (GST)value of other goods payments for exportW1 ,and$ , .00$52,000 , of GST-free , sales for.00 43,122 at T7 G11 $ of the Form activity due on statement.Write the T7 amount atOption5A in1:thePaySummarya PAYG instalmentsection belowamount quarterlyt withheld goods where When sold completing Australia. this form:Amount withheld fromOR if varying this amount, complete T8, T9, T4o ABN is quoted W4 $Sam ■ places print clearly an ‘X’ in using W2 ,the box a $ , .00black to show penPayment due onpayments shown at W1, he has chosen , .00option 1.Complete Option 1 OR 2 OR 3 (indicate one choice with an X)Estimated tax for the year T8 $ T7 $From ■ his round calculation down to worksheet whole dollars Sam writes (do not the show figure cents), , .00mounts withheldof 426,758 Write the T7 GST amount accounting at 5A method in the Summary section belowding any amount Amountat G1 ■ and if W3 withheldreporting places $ whereOption 1: Calculate GST and report quarterlyan a zero ‘X’ in amount, the box below print ‘0’ G1 (do to indicate not use that NIL) OR if varying this amount, complete T8, T9, T4no ABN is quoted W4 , $ , .00Varied, , .00 amount payablewn at W2 or W4)GST ■ is leave included boxes in the blank amount. if not applicable (do not use N/A, NIL)for the quarter T9 Contact $Total phone sales number , , .00ORWrite the T9 amount (G1 Estimated requires 5A in tax 1A the for completed) the Summary year T8 G1 section $ below ,■ do not report negative figures or use symbols such as +, −, /, $., 426758 ,, .00(G1mounts withheldOther amounts withheldAuthorised contact personSam writes the figure of 45,000 (the total Customs free on(W2 + W4 + W3)(excluding W5 any $ amount W3 , $ , , .00 , Reason .00code for variation Varied T4 Does amount who the completed amount payable the formboard shown value at W2 of or goods W4)shownfor export) at G2. The figure of 52,000for at the G1 quarter T9 $include GST? Yes , No , .00he W5 amount Goods at 4 in and the Summary services section below tax (GST)is reported at G3, which is the total other GST-free sales. ORWrite the T9 amount (indicate at with 5A in X) the Summary section belowTotal amounts withheldRe(W2 + W4 + W3) W5 $ , , Option .00 2: Calculate Reason PAYG code for instalment variation using T4 income times rateinExport salesComplete Option 1 OR 2 OR 3 (indicate one choice with an X)G2 $ , 45000 , .00r varying (G24 Write & the T4) W5 amount at Code 4 in the Obligation Summary section below PAYG instalmentPAYG tax withheldOR incomePAYG T1 income $ tax , instalment , .00investments 21 PAYG onlyOption 1: Calculate GST and report quarterlyOptionOtherOptionGST-free2: Calculate 2: salesPAYG G3 GST instalment $ quarterly using and report income annually times rate, , .00siness structure not continuing 22 GST & PAYGTotal salesOR CompleteT2Option 1 OR 2 (indicate% 52000 ORone choice with X)t changeReasonin trading Total for salary, conditionsvarying wages (G24 and &23T4) Total sales(G1 requires other 1A completed) payments W1 G1 $ GST & PAYGCode ObligationPAYG instalment income , , .00T1 $(G1 requires 1A completed) G1 $ , , .00426758 OR, , .00siness restructureChange in investments24 GST & PAYG21 PAYG onlyNew varied rate Option T3 Capital1: Pay a PAYG instalment amount quarterlyDoes thepurchasesamount shown G10.$ %, 3300 , .00legislationCurrentor productbusinessAmountDoes mix withheldthe structure amountfromshown not25continuingGST & PAYG22 GST & PAYGat G1 include T2 GST? Yes No %payments shownat G1 includeat W1GST? W2 $ Yes , No , .00W(indicate with X)market changesSignifi cant change in trading(indicate with 26conditionsX) GST & PAYG23 GST & PAYGT1 x T2 (or x T3) T11 $ OR T7 $(leWrite Report Non-capitalthe GST T7 on purchasesamount sales at 1A G11 ,5A and $ , .00in the GST Summary on purchases , section at below 1B , .00Internal business restructure 24 GST & PAYGNew varied rate T3 . 43122%ome tax lossesAmount withheld where 27 PAYG onlyWrite the T11 amount in the at 5A Summary in the Summary section over section the belowORpageChange in legislation Export sales G2 OR if varying this amount, complete T8, T9, T4no ABN quoted or product W4 mix$ 25 , GST 45000& PAYG , .00 Report GST on sales at 1A and GST on purchases at 1BFinancial market changes 26 GST & PAYGin the Estimated Summary T1 x T2 (ortax for section x T3)the year over T11 T8 the $ $ page , , , .00Reason code for variation T4, .00Use ofOtherincomeamountstax losseswithheld27 PAYG onlyOption 3: Pay GST instalment amount quarterly(excluding Other GST-free any amount sales W3 G3 $ , , .00Write the T11 amount at 5A in the Summary section belowary52000 OR Varied amount payableshown at W2 or W4)Using the calculationfor the quarterworksheet, T9 $ Sam calculates , his , GST credit .00you owe the ATOAmounts the ATO as Reason one-eleventh owesWrite the code youT9 for amount variation of the at T4 total 5A G21 in the purchases$ Summary subject section below to GST at G19GST on salesTotal amounts Capital purchases withheld G10 .00(W2 + W4 + W3) W5 $ , , .00of the worksheet. Sam transfers the GST credit figure of 3,688 Wr GST instalment 1A $Summary , , .00GST on purchases 1B $Reason code for variation T4 , , .00(leWrite the G21 amount at 1A in the Summary section over the pageWrite the W5 amount at 4 in the Summary section belowDo not complete shown 1B if using at G20 GST of instalment the worksheet amount (Option to 1B 3) of the activity statement.Amounts you owe the ATOAmounts (leave 1B blank)Non-capital purchases G11 $ , , .00OR the ATO owes youAYG tax withheldR4 $GST on sales , , .00or GST instalment 1A $ , , .00 OR if Option varying GST on 2: purchases this Calculate amount, 1B PAYG complete $ instalment G22, using G23, , G24 income 3688 , times rate .00Report GST on sales at 1A and GST on purchases at 1BNAT 4189-06.2011 [JS 20300]e tax instalmentCredit from PAYG income Do tax5A $Reason in the Summary for varying section (G24 &, over T4) , .00not complete 1B if using GST instalment amount (Option 3)the page Code Obligation instalment PAYG instalment Estimated income net T1 G22 $ GST for the year, , .00PAYG tax withheld 4 $, , .00Sam variation calculates5B $the difference , between , .001A and 1B to work out ifd company/fund Change in investments 21 PAYG onlyhe has a refund or an amount due to the ATO.7 $instalment Current business structure not , continuing, .0022 GST & PAYGVaried amount payable T2 % Methods of payPAYG income tax instalmentCredit from PAYG income tax5A $ , , .00 The differenceinstalmentbetweenfor the quarter G23 $ , , .00BPAY variation 5B 1A and $ 1B (29,758Signifi cant change in trading conditions 23 GST & PAYGOR® : contact your fi nancial , – 3,688)institution to , equals .00make Direct d1A + 4 + 5A + 7 All 8A amounts $ Sam , reported , at G2 and .00 G3 should also 26,070. 1B + 5B 8B This $ isInternal business restructure 24 GST & PAYGWrite the New G23this thevaried amountpayment amountrateat T3 1A , from he writesin theyourSummarycheque ,at label. sectionor savings 9 .00 if heoveraccount. has no other% the pageinstitutioDeferred company/fundhave been reported 7 at G1. $Quote biller code 75556 and your EFT code (shown organisinstalment, , .00 tax obligations to report on his activity statement.nt or (leave 1B blank)Change refund? in legislation or product mix 25 GST & PAYGon the front of the payment slip) as the customer Mail paFinancial market changes then write the result of 8A minus 26 8B at GST 9. This & PAYG amount isReason code T1 x for T2 reference variation (or x T3) number. T11 G24 $ , , .001A + 4 + 5A + 7 8A $1B + 5B 8B $money, , .00Your payment or refund amountre than 8B? Yes,Using Use of the income calculation tax losses worksheet, Sam 27 calculates PAYG only the GST onCredit card: payments can be made , online or by , .00payable to the ATO.phone, a staples.h X)Write the T11 amount at 5A in the Summary section belowPayment hisNATsales4189-06.2011as one-eleventh or refund?9 $[JS 20300]card payment , fee applies. 26070 , Go to www.ato.gov.au/howtopay.00then write the of result the of total 8B minus sales 8A subject at 9. This amount to GST is ofPost ofNo,or phone 1300 898 089.refundable to you (or cheque$327,345 shown at G8 of the worksheet.then offset write against the result any otherTheofGST8A tax minus debtof $29,7588B you at have). 9. This amount Sam isReasondoesDoDirect codenot useforusesymbolscredit: variationa + / YourIs 8A more than 8B? Yes,you can T4 -suchat labelaspayment+, –,9/,if$he or refund has a payment amountpayable to the ATO.electronically transfer funds to the $3,000n I declare is that transferred the in for ma tion from given G9 on this on form the is worksheet true and correct, to and 1A that on the activity Return this or completed refund ATO’s form amount. toHRS MINSdirect credit bank account using online banking facilities. present(indicatestatement. Summarywith X)9 $then write the result of 8B minus Methods 8A at 9. This amount of payment, , .00rised to make this declaration. The tax invoice re quire ments have been met.isNo,Use BSB 093 003, Account number 316 385 and yourAmounts you owe BPAY the ® : contact ATO your refundable fi nancial to institution you (or offset to make against any other tax Direct debt SamAmounts you debit: then: have). EFT have the code. your ATO Phone owes payment Do1800notyoudeducted use815symbols886 from forsuchassistance your as fi +, nancial –,if/,required.$Estimate the time taken to completeChequeGST this on sales payment from your cheque or savings account. institution n signs account and dates (not his credit activity cards). this form. statement Phone Include 1800 the time 802 taken 308 toand payDeclaration I declare that the in GST instalment Quote biller 1A for ma tioncode $ given on this form is true and correct, and75556 and , your EFT code , (shown .00 thatReturnorganise a direct GSTthisdebit oncompletedpurchasesformor to get 1B toHRS toDate /MINS29758/collect further $ any information., , .00 be crosI am authorised to make this declaration. The tax invoice re quire ments have been met. n completes the payment advice form at the bottom of thestatement instructions are available on the from front www.ato.gov.au of the payment or can slip) be ordered as the by customer phoning 13 28 66. The Mail ATO is payments: authorised Do not complete by mail the tax the laws 1B payment if to using collect GST slip this instalment together information with amount to your (Option cheque 3) or at any Ater those laws and may reference number.PAYGpasstaxinformationwithheldto other government agencies. More information about4 $ , , .00 privacy money and access activityorder to your statementusing tax the information envelope is available provided. from Please www.ato.gov.au Estimate do not the use time taken pins to or completethis form. Include the time taken toSignature Credit card: payments can be made online Date or by phone, / a / staples. n fills Do in his not contact send cash. details See below on the for front cheque ofcollectthe information. anyactivityinformation.statementcard payment fee applies. Go to www.ato.gov.au/howtopayPAYG Activity income statement Post office: payments can be made at any post offi ce by cash,or phone tax instalment instructions Credit from PAYG income tax1300 898 5A are089.available $ from www.ato.gov.au or can be ordered, , .00by phoning n lodges 13 28 66. the The ATO activity is authorised statementcheque or EFTPOS instalment (where variation 5B by the $ tax and laws pays to collect the this amount information owing to byavailable and subject to , daily limits). , .00administer those laws and may pass information to other government agencies. More information the about due privacy date and access to your tax information is available from www.ato.gov.au ADirect credit: you can electronically transfer funds to the $3,000 limit applies to cash payments. Your payment slip must beDeferred ATO’s company/fund direct credit 7 bank $ account using , online banking , facilities. .00 presented with your payment.4641890611Business activityUse BSBinstalment093 003, Account number 316 385 and yourn4189-06-2011.indd 1EFT code. Phone 1800 815 886 for assistance if required. Cheques/money orders should be for amounts in Australian dollars1A + 4 + 5A + 7 8A $ , , .00 and payable to ‘Deputy 1B Commissioner + 5B 8B $ of Taxation’. , Cheques should , .00be crossed ‘Not Negotiable’. Payments cannot be made in personat any ATO site or shopfront.then write the result of 8A minus 8B at 9. This amount isYour payment or refund amountYes,payable to the ATO.9 $ , , .00then write the result of 8B minus 8A at 9. This amount isNo,Payment or refund?Is 8A more than 8B?(indicate with X)

09 EXAMPLE OF RECORD KEEPINGA printed copy of the GST calculation worksheetfor BAS (NAT 4203) is available by:n visiting our website at ato.gov.au/onlineorderingn phoning the Publications Distribution Service (whichoperates from 8.00am to 6.00pm, Monday to Friday)on 1300 720 092.47

DEFINITIONSActivity statementYou use an activity statement to report your business taxentitlements and obligations, including GST, pay as you goinstalments, pay as you go withholding and fringe benefitstax instalments.Annual GST returnIf you report GST annually, you use an annual GST return toreport actual amounts for GST, wine equalisation tax (WET)and luxury car tax (LCT). If you use option 3 (paying quarterlyinstalments of GST and reporting annually), your annual GSTreturn is also used to account for the difference between thetotal of your instalment amounts and your actual GST liability.AssociateIncludes people and entities closely associated with you,such as relatives, or closely connected companies or trusts.A partner in a partnership is an associate of the partnership.Financial acquisitions thresholdIf you make financial supplies without exceeding the financialacquisitions threshold (for example, your total sales includeonly a small amount of financial supplies), and you have atax invoice, you may be able to claim GST credits for yourpurchases that relate to making those financial supplies.For more information, see GSTR 2003/9 Goodsand services tax: financial acquisitions threshold.GST-free salesA sale is GST-free if it is of a type specified in the lawas GST‐free. Examples of GST-free sales include:n most health and education servicesn eligible childcare servicesn subject to exceptions, basic food.Input taxed salesA sale is input taxed if it is of a type specified in the law as inputtaxed. Two of the most common types of input taxed sales are:n financial suppliesn supplies of certain residential premises by way of rent or sale.Period of reviewFor tax periods that start on or after 1 July 2012 a four yearperiod of review applies where we may amend an assessment.The period of review may be extended, or when an amendmentis made it can be refreshed in respect of the amended particularfor a further four years.Taxable salesYou make a taxable sale if you’re registered or requiredto be registered for GST and:n you make the sale for considerationn you make the sale in the course or furtherance of a businessyou carry onn the sale is connected with Australia.However, the sale is not taxable to the extent it is eitherGST‐free or input taxed.Financial suppliesA financial supply is the provision, acquisition or disposalof an interest in something specified in the GST law as beinga financial supply. Provided certain requirements are met,examples of financial supplies include the:n lending or borrowing of moneyn buying or selling of shares or other securitiesn the creation, transfer, assignment or receipt of an interestin, or a right under, a superannuation fundn provision or receipt of credit under a hire purchase agreementif the credit is provided for a separate charge that is disclosedto the purchaser.48

INDEX1A, 13–14, 26, 371B, 13–14, 36, 3812 week register for entertainment fringe benefits, 3550/50 split method for entertainment fringe benefits, 35$82.50 or less, purchases costing, 8$1,000 or less, purchases for, 28AABNs, 6, 43to purchase or import cars exceeding car limit, 27accommodation, 9, 25retirement villages, 23accompanied baggage, 22accounting methods, 10–12cash/non-cash, 15; shown on statement, 6food retailers, 24see also calculation worksheet methodaccounts method, 12GST on purchases (1B), 38GST on sales (1A), 37total sales (G1), 18accruals accounting, 15acquisitions, see purchasesactivity statement revision form, 16adjustments, 16agents, purchases through, 29agents, sales through, 20agreements, see contracts and agreementsaircraft, 21aircraft stores or spare parts, 21, 22annual apportionment election, 35Annual GST information report, 14Annual GST return, 37–8annual reporting, and quarterly payment (option 2), 14, 37–8annual reporting and payment, 37–8annual reporting and quarterly payment (option 3), 14, 37–8apartments in retirement villages, 23apportionment election, 35asset purchases, see purchasesasset sales, 19, 20associates, 35, 48receipts/purchases from, 27, 29, 32, 35supplies/sales to, 19Australia Post outlets, payment at, 43Australian business numbers (ABNs), 6, 27, 43to purchase or import cars exceeding car limit, 27Australian Customs and Border Protection Service, see CustomsBbad debt, 16baggage, accompanied, 22bank accounts, 43interest earnings, 19bar code, 6barter transactions, 19, 20beverages, 23bingo, 23boat expenses, 35bond, excisable goods in, 20, 30borrowings, see financial suppliesBPAY ® , 42buildings, see real propertybusiness and business asset sales, 19business asset purchases, see purchasesbusiness norms accounting method, 9businesses, 5additional instructions checklist, 9making GST-free sales, 24sale of going concerns, 23, 24Ccabs, 9, 24calculation worksheet method, 10–11, 46calculating purchases, 31–6calculating sales, 25–6example, 46–9GST on purchases (1B), 38GST on sales (1A), 37total sales (G1), 18camping grounds, 25cancelled registrations, 16cancelled sales or purchases, 16lay-by, 19canteen sales, 25capital assets, disposal of, 20capital purchases (G10), 27–8, 30–1when to report, 13–14see also importationscaravan parks, 25, 29cars, see motor vehiclescash basis accounting, 15cash registers, 27charges and fees, 34charities, 23cheques, payment by, 43refunds, 43childcare services, 23, 48closely connected companies/trusts, see associatesclub expenses, 35coin-operated machine sales, 20commercial accommodation, 9companies, see associatescomputers, 27conditional contracts, 20consideration, 5see also purchases; salescontact details, 6contracts and agreements, 9providing non-deductible non-cash business benefits, 35sales made under, 20, 21; going concerns, 23, 24correcting mistakes, 16credit card payments, 42credits, see GST creditscustomer security deposits, forfeited, 19Customs, 15, 30documentation, 849

INDEXDdebtbad, 16sale of property to satisfy, 19see also payment of taxdecreasing adjustments, 16Deferral GST Scheme, 30definitions and terms, 5, 49deposits, forfeited, 19direct credit and debit payments, 42discounts, 16‘do not complete this option’, 6document ID, 6documentation, see records and record keepingdomestic use, see private usedrainage and sewerage services, 23Eearnings from financial supplies, 19education services, 23$82.50 or less, purchases costing, 8electronic lodgment and payment, 42employee contributions for fringe benefits, 19employee purchases, reimbursement of, 29enterprises, see businessesentertainment expenses, 35equipment, 19purchases, 27, 29; sale at expiry of lease, 20errors, correction of, 16excisable goods in bond, 20, 30expenses, see purchasesexport sales, 21–2G1 report, 20when to report, 13–14Ffamily maintenance expenses, 35fees and charges, 19, 3450/50 split method for entertainment fringe benefits, 35financial acquisitions threshold, 48financial institution accounts, 43interest earnings, 19financial supplies, 48additional instructions, 9earnings from, 19sales, 16, 25flights, stores or spare parts for international, 21, 22food, 23, 24sales by school tuckshops and canteens, 25foreign residents’ agents, sales made through, 20foreign trade, see export sales; importationsforeign transport, see international transportforfeited customer deposits, 19free on board value of export sales, 20, 21freight, amount received for export sales, 20fringe benefits, 33, 35employee contributions, 19fundraising events, 25furniture, 19, 27GG1, 13–14, 18–20, 25G2, 13–14, 21–2G3, 13–14, 23–4G4, 25G5-9, 26G10, 13–14, 27–8, 30–1G11, 13–14, 28–31G12, 31G13, 32–3G14, 34G15, 34–5G16–G20, 36gambling supplies, 9general interest charge, 42gift deductible entities, 23going concerns, sales of, 23, 24government schools, 23grants, 19GST credits (input tax credits), 5, 28, 33, 36, 37, 38tax invoices, 8when adjustments arise, 16when to report, 15GST Deferral Scheme, 30GST-free sales, 20, 21–3purchases, 34when to report, 13–14GST instalment amount (option 3), 14, 37–8GST on purchases (1B), 13–14, 36, 38GST on sales (1A), 13–14, 26, 37GST registration, cancellation of, 16Hhealth services, 23, 24hire purchase sales, 20see also financial supplieshousing, see accommodationIimportations (offshore purchases), 30, 32–5cars exceeding car limit, 27documentation, 8intangible supplies, 29, 34when adjustments arise, 16when to report, 15income from financial supplies, 19increasing adjustments, 16input tax credits, see GST creditsinput taxed sales, 25, 32–3excisable goods in bond for, 20, 30items received from associates for, 27, 29, 32instalment amount (option 3), 14, 37–8instalment (part) payments, 21insurance, 9, 29export sales, 20importations, 30intangible supplies purchased offshore, 29, 34interest charge on late payments, 42interest payments received, 1950

INDEXinternational trade, see export sales; importationsinternational transport, 21, 23costs, 30international travel, 21, 22, 23internet lodgment and payment, 42invoices, 8export sales, 21Lland, see real propertylate lodgment or payment, 42lay-by sales, cancelled, 19leases, 19, 25sale on expiry, 20leisure facility expenses, 35loans, see financial supplieslodgment, 42location of date on statement, 6long-term accommodation, 25long-term non-reviewable contracts, 9luxury car tax (LCT), 24Mmachinery, 27mail, 23lodgment and payment by, 42margin scheme, 9marinas, 25meal entertainment, 35medical services, 24memberships you provide, 19metal, precious, 23, 25mistakes, correction of, 16monthly reporting and payment, 13, 37–8motor vehicles, 19purchases/importations, 28; cars exceeding car limit, 27Nnet GST liability, adjustments to, 16non-capital purchases (G11), 29–31$1,000 or less, 28when to report, 13–14see also importationsnon-cash basis accounting, 15non-cash business benefits, 35non-deductible expenses, 35non-profit organisations, 5, 24non-residents’ agents, sales made through, 20non-reviewable contracts, long-term, 9Oobligations, entry into or release from, 19office furniture and equipment, 19, 27offsetting, 43offshore purchases, see importations$1,000 or less, purchases for, 28online lodgment and payment, 42options to calculate, report and pay, 13–14, 37–8other GST-free sales, 23–4when to report, 13–14overseas export sales, see export salesoverseas importations, see importationsoverseas residents’ agents, sales made through, 20overseas transport, see international transportPpart payments, 20partnerships, see associatespayment of tax, 42adjusting net liability, 16location of date due on statement, 6payment periods, 13–14, 37–8recording as purchases without GST in price, 34payments, 5invoices issued before receiving for exports, 21in part/as instalments, 20see also purchases; salespenalties, 35for late lodgment or payment, 42periodic sales and purchases, 9plant and equipment, 27post offices, payment at, 42precious metal, 23, 25previous statements, correcting and adjusting GST in, 16price changes, 16private sector grants received, 19private use, 34–5actual use differs from intended use, 16excisable goods in bond, 20, 30items received from associates for, 27, 29, 35items supplied to associates for, 19progressive sales and purchases, 9property, see real propertypurchases, 5, 27–36additional instructions checklist, 9record keeping, 44–9tax invoices, 8when adjustments arise, 16when to report, 13–15, 38purchases snapshot accounting method, 9Qquarterly activity statement, examples of, 6–7, 46quarterly payment and annual reporting (option 2), 14, 37–8quarterly reporting and payment (option 1), 13, 37–8Rracing industry, 20raffles, 23real property, 19, 25purchases, 27rebates from sellers, 16records and record keeping, 39, 44–7accounts method, 12tax invoices, 8recreational expenses, 35refunds, 43registration, cancellation of, 1651

INDEXregistration, entities not or not required to be, 19purchases from, 34relatives, see associatesreligious services, 23rentals, 19, 25equipment, 29repairs, 29of overseas goods, sale of goods used in, 22reporting periods, 5, 13–14, 37–8location of due date shown on statement, 6no sales in, 18, 42tax invoices not obtained during, 8resale, stock bought for, 29residential premises, 25retention clauses, sales made under contracts subject to, 20retirement villages, 23returned goods, 16revision forms, 16rights, creating etc., 19see also financial suppliesroyalties received, 19running expenses, 29Ssales, 5, 18–26, 48additional instructions checklist, 9record keeping, 44–7when adjustments arise, 16when reported, 13–14, 37see also trading stocksales percentage accounting method, 9schools, 23, 25second-hand goods, 9, 27securities, see financial suppliessecurity deposits, forfeited, 19serviced apartments in retirement villages, 23sewerage services, 23shares, see financial suppliesships, 21ships stores or spare parts, 21, 22small businesses, 5, 37snapshot accounting method, 9sponsorship, 19stationery, 29stock, 19, 29returned goods, 16stock purchases accounting method, 9storm water drainage, 23superannuation, see financial suppliessupplies, see sales$1,000 or less, purchases for, 28total sales (G1), 18–20residential premises, 25when to report, 13–14trade-ins, 19trading stock, 19, 29returned goods, 16travel, 35international services, 23trusts, see associatestuckshop sales, 2512 week register for entertainment fringe benefits, 35Uuniforms, 35used (second-hand) goods, 9, 27Vvehicles, see motor vehiclesvending machine sales, 20vouchers, 9voyages, stores and spare parts for international, 21, 22Wwater, 23wine tax, 30worksheet method, see calculation worksheet methodwrite-off of bad debt, 16Ttax invoices, 8tax liability, adjustments to, 16tax payments, see payment of taxtax periods, see reporting periodstaxable sales, see salestaxis, 9, 24terms and definitions, 5, 4852

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MORE INFORMATIONIf you need more information, you can:n visit our website at ato.gov.aun phone us on 13 28 66n write to us atAustralian Taxation OfficePO Box 3524ALBURY NSW 2640If you do not speak English well and need help from the ATO,phone the Translating and Interpreting Service on 13 14 50.If you are deaf, or have a hearing or speech impairment, phoneus through the National Relay Service (NRS) on the numberslisted below:n TTY users, phone 13 36 77 and ask for the ATO numberyou needn Speak and Listen (speech-to-speech relay) users, phone1300 555 727 and ask for the ATO number you needn internet relay users, connect to the NRS onrelayservice.com.au and ask for the ATO number you need.55