Australia GST

Australia GST

Australia GST

Section 1 -- Quick reference

Quick reference field table

Field	Value
Country	Australia (Commonwealth of Australia)
Standard rate	10% (single rate -- no reduced rates)
GST-free (zero rate equivalent)	0% -- input tax credits retained (Division 38)
Input taxed (exempt equivalent)	No GST; related credits generally blocked, subject to financial-supply exceptions in section 5.3 (Division 40; s 11-15; Division 70)
Return form	BAS (Business Activity Statement) -- Simpler BAS or Full BAS
Filing portal	ATO Business Portal (https://bp.ato.gov.au) / myGov (https://my.gov.au)
Authority	Australian Taxation Office (ATO)
Currency	AUD only
Filing frequencies	Monthly (GST turnover >= $20M or another mandatory/elected monthly case); Quarterly (standard); Annual (voluntary, turnover < $75K)
Deadline	Monthly: 21st of following month; Quarterly: 28th after quarter, except December quarter due 28 February; Annual: income-tax-return due date, or 28 February if no income-tax return is required
Registration threshold	AUD $75,000 (general); AUD $150,000 (non-profit); taxi/ride-sourcing registration regardless of turnover
Primary legislation	A New Tax System (Goods and Services Tax) Act 1999 (GST Act)
Supporting legislation	Taxation Administration Act 1953 (Schedule 1); GST Regulations 2019; LCT Act 1999; WET Act 1999
Contributor	Open Accounting Skills Registry
Validation date	April 2026
Skill version	2.3

Read this whole section before classifying anything.

Key BAS labels table

Label	Meaning
G1	Total sales (GST-inclusive basis in this worksheet; include GST-free and input-taxed sales and indicate the basis on the BAS)
G2	Export sales (GST-free, Division 38-E)
G3	Other GST-free sales (food, health, education -- Division 38-A to 38-D, 38-F+)
G4	Input taxed sales (financial supplies, residential rent -- Division 40)
G5	G2 + G3 + G4 (derived)
G6	G1 minus G5 (derived -- total taxable sales, the base for output GST)
G7	Adjustments on sales (bad debts, price changes -- Division 19)
G10	Capital purchases (plant, equipment, vehicles -- GST-inclusive)
G11	Non-capital purchases (operational expenses, stock -- GST-inclusive)
G12	G10 + G11 (derived)
G13	Purchases for making input taxed sales (no credit)
G14	Purchases with no GST in the price (from unregistered, GST-free, wages)
G15	Estimated purchases for private use (no credit)
G16	G13 + G14 + G15 (derived)
G17	G12 minus G16 (derived -- total creditable purchases)
G18	Adjustments on purchases (Division 19, Division 129)
1A	GST on sales (output GST)
1B	GST on purchases (input tax credits)

• Simpler BAS reporting scope — Simpler BAS (turnover < $10M, default since 1 July 2017): Report only G1, 1A, 1B. No need for G2-G18. ((ATO GST reporting))
• Full BAS reporting scope — Complete the labels required by the issued BAS. G4–G9 and G12–G19 are calculation-worksheet items, not a requirement to lodge every G label. Use G1, G2, G3, G10, G11, 1A and 1B where required, plus other tax labels that apply. ((ATO GST reporting))
• GST calculation formulas — GST = GST-inclusive price x 1/11; GST = GST-exclusive price x 10%; GST-inclusive = GST-exclusive x 1.1; GST-exclusive = GST-inclusive / 1.1 ((Section 1 -- Quick reference))

Conservative defaults -- Australian-specific

Ambiguity	Default
Unknown GST status of a sale	Taxable at 10%
Unknown GST status of a purchase	No input tax credit claimed
Unknown business-use proportion (vehicle, phone, home office)	0% credit
Unknown whether food is basic or prepared	Taxable at 10% (prepared food)
Unknown counterparty registration status	Verify registration and supply evidence; withhold unsupported credits and keep the treatment pending
Unknown SaaS billing entity location	Non-resident, reverse charge applies
Unknown insurance type (general vs life)	Input taxed (no credit)
Unknown property type (commercial vs residential)	Residential (input taxed, no credit)
Unknown whether transaction is in scope	In scope
Cash withdrawal purpose	Owner drawing, exclude

Red flag thresholds

Threshold	Value
HIGH single-transaction size	AUD $5,000
HIGH tax-delta on a single conservative default	AUD $500
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net GST position	AUD $10,000

Related guides

Related guides

Question	Guide
The end-to-end BAS preparation sequence, reconciliation, label mapping and corrections	au-bas-preparation.md
PAYG withholding, PAYG instalment and FBT instalment labels	au-gst-bas.md
Property supplies, the margin scheme and GST at settlement	au-gst-property.md
Due dates, penalties, interest and remission	au-lodgment-deadlines-penalties.md
Account coding, evidence and reconciliation controls	australia-bookkeeping.md

Required inputs

Minimum viable -- bank statement for the period in CSV, PDF, or pasted text. Must cover the full BAS period. Acceptable from any Australian business bank: CBA, Westpac, ANZ, NAB, Macquarie, Bendigo, Suncorp, Bank of Queensland, Up Bank, ING, Revolut AU, Wise, or any other. Recommended -- sales invoices for the period (especially for exports and GST-free supplies), tax invoices for purchases above $82.50 including GST, unless a lawful exception applies; evidence for all credit claims, the client's ABN in writing (11 digits), prior period BAS. Ideal -- complete accounting software export (Xero, MYOB, QuickBooks), tax invoice register, prior period BAS with any credit carried forward.

If source evidence is incomplete, prepare a provisional transaction list. Withhold unsupported credits from the claimable-credit total and identify them separately for review. A tax invoice is generally required before claiming a purchase above $82.50 including GST; the $500 review-priority flag is not an evidence threshold. A bank statement does not itself establish GST or creditable purpose. GST Act ss 29-10 and 29-80.

Australia-specific refusal catalogue

If any trigger fires, stop, output the refusal message verbatim, end the conversation. Refusal is a safety mechanism.

• R-AU-1 -- Partial exemption complex — Trigger: client makes both taxable/GST-free supplies AND input taxed supplies, and the input taxed proportion is not de minimis (financial acquisitions threshold exceeded). Message: "You make both taxable and input taxed supplies. Your input tax credits must be apportioned under Division 11 (s 11-30), which requires determining the extent of creditable purpose for each acquisition. This cannot be completed without a documented apportionment methodology confirmed by a registered tax agent. Please escalate." ((Division 11, s 11-30))
• R-AU-2 -- GST groups — Trigger: client is part of a GST group under Division 48 or asks about group registration. Message: "GST groups under Division 48 require consolidation across the group with a representative member lodging a single BAS. Intra-group supplies are disregarded. This is out of scope for this skill. Please use a registered tax agent." ((Division 48))
• R-AU-3 -- Margin scheme — Trigger: client sells property using the margin scheme under Division 75. Message: "Margin scheme transactions under Division 75 require computing GST on the margin (sale price minus acquisition cost) and confirming eligibility based on the original acquisition. This is too fact-sensitive for this skill. Please use a registered tax agent." ((Division 75))
• R-AU-4 -- Going concern — Trigger: client sells or buys a business as a going concern under s 38-325. Message: "Going concern supplies under s 38-325 require verification that all three conditions are met (going concern, both parties registered, written agreement). Incorrect classification results in either 10% GST on the full sale price or a missed GST-free entitlement. Please use a registered tax agent to confirm eligibility before proceeding." ((s 38-325))
• R-AU-5 -- Financial supply complex (financial institution) — Trigger: client is a financial institution (bank, insurer, super fund) whose primary supplies are input taxed financial supplies, or client asks about Reduced Input Tax Credits (RITC). Message: "Financial institutions making predominantly input taxed supplies require specialist apportionment, RITC calculations (75%/55%), and the financial acquisitions threshold test. This is out of scope. Please use a registered tax agent specialising in financial services GST." ((RITC 75%/55%))

Section 3 -- Supplier pattern library (Australian vendors)

Use merchant patterns to identify candidate treatments. Confirm the actual supply, supplier registration, invoice GST and creditable purpose before computing a credit. Resolve conflicts in favour of source documents and law. A merchant name alone cannot establish taxability or business use.

How to read this table. Match by case-insensitive substring on the counterparty name as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5.

3.1 Australian banks (fees input taxed -- exclude)

Australian banks table

Pattern	Treatment	Notes
CBA, COMMONWEALTH BANK, COMMBANK, NETBANK	EXCLUDE for bank fees/charges	Financial supply, input taxed. No GST on bank fees.
WESTPAC, ST GEORGE, BANK OF MELBOURNE, BANKSA	EXCLUDE for bank fees/charges	Same -- all Westpac group
ANZ, ANZ BANK	EXCLUDE for bank fees/charges	Financial supply, input taxed
NAB, NATIONAL AUSTRALIA BANK	EXCLUDE for bank fees/charges	Financial supply, input taxed
MACQUARIE, MACQUARIE BANK	EXCLUDE for bank fees/charges	Financial supply, input taxed
BENDIGO BANK, ADELAIDE BANK	EXCLUDE for bank fees/charges	Financial supply, input taxed
SUNCORP BANK, BOQ, BANK OF QUEENSLAND	EXCLUDE for bank fees/charges	Financial supply, input taxed
UP BANK, ING DIRECT, ING AUSTRALIA	EXCLUDE for bank fees/charges	Financial supply, input taxed
REVOLUT, WISE (fee lines)	EXCLUDE for transaction/maintenance fees	Check for separate taxable subscription invoices
INTEREST, INT PAID, INT RECEIVED	EXCLUDE	Interest income/expense, input taxed or out of scope
LOAN, HOME LOAN, PERSONAL LOAN, MORTGAGE	EXCLUDE	Loan principal movement, out of scope

3.2 ATO and government (exclude entirely)

ATO and government table

Pattern	Treatment	Notes
ATO, AUSTRALIAN TAXATION OFFICE	EXCLUDE	Tax payment (GST, PAYG, income tax), not a supply
ATO BAS, BAS PAYMENT	EXCLUDE	GST remittance
ASIC, AUSTRALIAN SECURITIES	EXCLUDE	Regulatory fee -- note: ASIC annual review fee has no GST
COUNCIL RATES, CITY OF, SHIRE OF	EXCLUDE	Local government rates, not a supply
STATE REVENUE, OSR, REVENUE NSW, SRO VIC	EXCLUDE	State tax (payroll tax, stamp duty, land tax)
CENTRELINK, SERVICES AUSTRALIA	EXCLUDE	Government benefit, not a supply
DEPARTMENT OF, DEPT OF	EXCLUDE	Government fee, sovereign act
WORKCOVER, WORKSAFE, ICARE	Domestic 10%	Workers compensation premium -- taxable supply, GST claimable

3.3 Australian utilities (taxable 10%)

Australian utilities table (GST Act ss 38-285 and 38-290; GSTR 2000/25)

Pattern	Treatment	BAS Label	Notes
ORIGIN ENERGY, ORIGIN	Domestic 10%	G11	Electricity, gas -- overhead
AGL, AGL ENERGY	Domestic 10%	G11	Electricity, gas -- overhead
ENERGY AUSTRALIA, ENERGYAUST	Domestic 10%	G11	Electricity, gas -- overhead
TELSTRA, TELSTRA CORP	Domestic 10%	G11	Telecommunications -- overhead
OPTUS, SINGTEL OPTUS	Domestic 10%	G11	Telecommunications -- overhead
TPG, TPG TELECOM, VODAFONE AU, IINET	Domestic 10%	G11	Telecommunications/broadband -- overhead
NBN CO, NBN	Domestic 10%	G11	National Broadband Network -- overhead
ALINTA ENERGY, RED ENERGY, SIMPLY ENERGY	Domestic 10%	G11	Electricity, gas -- overhead
SYDNEY WATER, MELBOURNE WATER, SA WATER	GST-free, subject to actual supply	G11	Piped water and associated metering are generally GST-free; distinguish separate installation/repair services. GST Act ss 38-285 and 38-290; GSTR 2000/25

3.4 Australian insurance (mixed treatment)

Australian insurance table

Pattern	Treatment	Notes
QBE, QBE INSURANCE	Domestic 10%	General insurance -- taxable, GST claimable
SUNCORP INSURANCE, GIO, AAMI	Domestic 10%	General insurance -- taxable
NRMA INSURANCE, NRMA	Domestic 10%	General insurance -- taxable
ALLIANZ AUSTRALIA	Domestic 10%	General insurance -- taxable
CGU, ZURICH AUSTRALIA	Domestic 10%	General insurance -- taxable
AMP LIFE, MLC LIFE, TAL LIFE	EXCLUDE	Life insurance -- input taxed, Division 40
HEALTH INSURANCE, MEDIBANK, BUPA, HCF, NIB	GST-free; no GST credit	Private health insurance is generally GST-free under s 38-55; check actual policy and private use
WORKCOVER, WORKSAFE, ICARE	Domestic 10%	Workers comp premium is taxable at 10%

3.5 Australian transport (taxable 10%)

Australian transport table

Pattern	Treatment	BAS Label	Notes
UBER AU, UBER AUSTRALIA, UBER *AU	Domestic 10%	G11	Rideshare -- taxable. Driver must be GST-registered regardless of turnover.
DIDI, DIDI AU	Domestic 10%	G11	Rideshare -- taxable
13CABS, SILVER TOP, TAXI	Domestic 10%	G11	Taxi -- taxable (mandatory GST registration)
SYDNEY TRAINS, TRANSPORT NSW, OPAL	Domestic 10%	G11	Public transport -- taxable at 10% (Australia does not zero-rate public transport)
METRO TRAINS MELBOURNE, MYKI, PTV	Domestic 10%	G11	Public transport -- taxable at 10%
TRANSLINK, GO CARD	Domestic 10%	G11	QLD public transport -- taxable
QANTAS, QANTAS AIRWAYS (domestic)	Domestic 10%	G11	Domestic flights -- taxable at 10%
VIRGIN AUSTRALIA (domestic)	Domestic 10%	G11	Domestic flights -- taxable
JETSTAR (domestic)	Domestic 10%	G11	Domestic flights -- taxable
QANTAS (international), VIRGIN (international)	GST-free	G11	International flights -- GST-free export (Division 38-E). Check ticket destination.
TOLL, LINKT, TRANSURBAN, CITYLINK, EASTLINK	Domestic 10%	G11	Toll road charges -- taxable

3.6 Australian food (basic food GST-free, prepared food 10%)

Australian food table

Pattern	Treatment	Notes
WOOLWORTHS, WOOLWORTHS METRO	TIER 2 -- split required	Supermarket: basic food items GST-free, non-food/prepared food at 10%. Default: treat as mixed, ask for receipt breakdown. If evidence is missing, leave any unsupported credit unclaimed pending review; do not invent a 50/50 split.
COLES, COLES EXPRESS	TIER 2 -- split required	Same as Woolworths
IGA, FOODWORKS, ALDI	TIER 2 -- split required	Same -- basic food GST-free, other items 10%
HARRIS FARM, FRUIT MARKET, GREENGROCER	GST-free	Basic food (fruit, vegetables) -- Division 38-A
UBER EATS, DOORDASH, MENULOG, DELIVEROO	Domestic 10%	Prepared/delivered food -- taxable. Delivery fee also taxable.
MCDONALD'S, KFC, HUNGRY JACK'S, SUBWAY, DOMINOS	Domestic 10%	Prepared food/restaurant meals -- always taxable
RESTAURANT, CAFE, BISTRO, PIZZERIA	Domestic 10%	Prepared food -- always taxable
BWS, DAN MURPHY'S, LIQUORLAND, FIRST CHOICE	Domestic 10%	Alcohol -- always taxable at 10% (plus excise/WET)

3.7 SaaS (reverse charge from non-resident suppliers)

SaaS table

Pattern	Billing entity	Treatment	Notes
GOOGLE (Ads, Workspace, Cloud)	Google Asia Pacific Pte Ltd (SG) or Google LLC (US)	Non-resident supply	If supplier registered for AU GST: 10% charged on invoice, claim credit. If not: reverse charge if not fully creditable.
MICROSOFT (365, Azure)	Microsoft Ireland Operations Ltd (IE) or Microsoft Regional Sales Pte Ltd (SG)	Non-resident supply	Same logic. Check invoice for ABN and GST charge.
ADOBE	Adobe Systems Software Ireland Ltd (IE)	Non-resident supply	Check invoice
META, FACEBOOK ADS	Meta Platforms Ireland Ltd (IE)	Non-resident supply	Check invoice for AU GST
SLACK, SALESFORCE	Slack Technologies / Salesforce (US or IE entity)	Non-resident supply	Check invoice
ATLASSIAN	Atlassian Pty Ltd (AU)	Domestic 10%	Atlassian is Australian -- domestic taxable supply, full credit
CANVA	Canva Pty Ltd (AU)	Domestic 10%	Australian entity -- domestic taxable supply
XERO	Xero Limited (NZ) or Xero Australia Pty Ltd	Check invoice	If AU entity: domestic 10%. If NZ entity: non-resident supply.
ZOOM	Zoom Video Communications (US)	Non-resident supply	Check invoice for AU GST registration
DROPBOX	Dropbox (IE or US)	Non-resident supply	Check invoice
AWS, AMAZON WEB SERVICES	Amazon Web Services Inc (US) or AWS Australia Pty Ltd	Check invoice	If AU entity: domestic 10%. If US entity: non-resident.

• Non-resident digital supplies note — Since 1 July 2017, many non-resident digital suppliers (Netflix, Spotify, Google, etc.) have registered for Australian GST and charge 10% on B2C supplies. For B2B supplies where the recipient provides an ABN, the supplier may not charge GST -- reverse charge may apply on the recipient if the acquisition is not fully creditable. Always check the actual invoice. ((3.7 SaaS (reverse charge from non-resident suppliers)))

3.8 Payment processors (classify the actual service)

Payment processors table (GSTR 2019/2)

Pattern	Treatment	Notes
STRIPE AU, STRIPE PAYMENTS AUSTRALIA	Check invoice and service	Merchant payment processing is not automatically input-taxed credit; claim only verified GST for creditable use
PAYPAL, SQUARE AU, TYRO, EFTPOS, MERCHANT FEE	Check invoice and service	Distinguish processing services, cross-border supplies and financial supplies
AFTERPAY, ZIP PAY, ZIP MONEY	Check contract and invoice	Classify merchant services separately from lending and other financial supplies

GSTR 2019/2 distinguishes credit supplied to a cardholder from payment services supplied to a merchant.

3.9 Professional services (taxable 10%)

Professional services table

Pattern	Treatment	BAS Label	Notes
Accountant names, CPA, CA, CHARTERED ACCOUNTANT	Domestic 10%	G11	Professional service -- always deductible if business purpose
TAX AGENT, BAS AGENT, BOOKKEEPER	Domestic 10%	G11	Tax/BAS agent fees -- deductible
SOLICITOR, LAWYER, BARRISTER, LAW FIRM	Domestic 10%	G11	Legal fees -- deductible if business purpose
ARCHITECT, ENGINEER, SURVEYOR	Domestic 10%	G11	Professional service
MARKETING, ADVERTISING, DESIGN, AGENCY	Domestic 10%	G11	Business service
CLEANER, CLEANING, OFFICE CLEANING	Domestic 10%	G11	Business service
IT SUPPORT, COMPUTER, TECH SUPPORT	Domestic 10%	G11	Business service

3.10 Property (commercial vs residential)

Property table

Pattern	Treatment	Notes
COMMERCIAL RENT, OFFICE RENT, WAREHOUSE RENT	Domestic 10%	Commercial lease -- landlord must be GST-registered. GST credit claimable.
RETAIL LEASE, SHOP RENT, INDUSTRIAL RENT	Domestic 10%	Commercial lease -- taxable
RESIDENTIAL RENT, HOME RENT, APARTMENT RENT	EXCLUDE	Residential rent -- input taxed (Division 40). No GST, no credit on related costs.
REAL ESTATE AGENT (rental management fee)	TIER 2	If managing commercial property: 10% taxable, credit claimable. If managing residential property: 10% taxable, but NO credit (cost relates to input taxed supply).
STRATA, BODY CORPORATE, OWNERS CORP	Review supply and registration	G11
AIRBNB, STAYZ, BOOKING.COM (income)	Review premises and supply	G1 or G4 as applicable

3.11 Superannuation (not a supply -- exclude)

Superannuation table

Pattern	Treatment	Notes
SUPER, SUPERANNUATION, SUPER FUND	EXCLUDE	Employer SG contributions -- not a supply, out of scope for GST
AUSTRALIAN SUPER, REST SUPER, HOSTPLUS	EXCLUDE	Super fund contributions -- out of scope
SUNSUPER, CBUS, HESTA, UNISUPER	EXCLUDE	Super fund contributions -- out of scope
SMSF, SELF MANAGED SUPER	EXCLUDE	SMSF contributions -- out of scope

3.12 Payroll (exclude entirely)

Payroll table

Pattern	Treatment	Notes
SALARY, WAGES, PAYROLL, PAY RUN	EXCLUDE	Employment relationship -- not a supply, out of scope
SUPER GUARANTEE, SGC, SG PAYMENT	EXCLUDE	Superannuation contribution -- out of scope
WORKCOVER, WORKSAFE PREMIUM, ICARE	Domestic 10%	Exception: workers comp premium IS taxable at 10%, GST credit claimable
PAYG WITHHOLDING, TAX WITHHELD	EXCLUDE	PAYG withholding remitted to ATO -- tax payment
LEAVE LOADING, ANNUAL LEAVE, LONG SERVICE	EXCLUDE	Employment entitlement -- out of scope
DIRECTOR FEE (outgoing)	EXCLUDE	Director fees -- generally out of scope for GST

Section 4 -- Worked examples

These are six fully worked classifications drawn from a hypothetical CBA NetBank bank statement of an Australian self-employed IT consultant based in Sydney. They illustrate the trickiest cases. Pattern-match against these when you encounter similar lines in any real statement.

Example 1 -- Non-resident SaaS, reverse charge not applicable (fully creditable)

Input line: 05.04.2026 ; GOOGLE ASIA PACIFIC PTE LTD ; DEBIT ; Google Workspace Business ; AUD 21.60

Reasoning: Google Asia Pacific Pte Ltd is a Singapore entity (non-resident). The client is a fully taxable IT consultant (no input taxed supplies). Under Division 84, reverse charge applies ONLY when the acquisition is NOT fully creditable. Since this client would be entitled to a full input tax credit anyway, reverse charge does NOT apply. The supply has no GST component. Treat as a purchase with no GST in the price.

Example 1 output

Date	Counterparty	Gross	Net	GST	Rate	BAS Label	Default?	Question?	Excluded?
05.04.2026	GOOGLE ASIA PACIFIC	-21.60	21.60	0	N/A	G11	N	--	--

Example 2 -- Local utility, standard 10%

Input line: 10.04.2026 ; TELSTRA CORP LTD ; DEBIT ; Monthly plan Apr 2026 ; AUD 99.00

Reasoning: For this example, a valid tax invoice confirms $9 GST in the $99 charge and the evidence establishes wholly creditable business use. Net expense is $90 and the positive credit is $9. If use is mixed, apportion the credit. Without the required invoice, keep it pending.

Example 2 output

Date	Counterparty	Gross	Net	GST	Rate	BAS Label	Default?	Question?	Excluded?
10.04.2026	TELSTRA CORP LTD	-99.00	90.00	9.00	10%	G11	N	--	--

Example 3 -- Supermarket purchase (mixed GST-free and taxable)

Input line: 12.04.2026 ; WOOLWORTHS 1234 SYDNEY ; DEBIT ; Grocery purchase ; AUD 87.50

Reasoning: Woolworths sells a mix of basic food (GST-free under Division 38-A) and taxable items (prepared food, confectionery, soft drinks, household goods). Without a detailed receipt, the split is unknown. Conservative default: treat entire amount as having no GST credit (safest approach -- underclaims rather than overclaims). Flag as Tier 2 -- ask client for receipt to split GST-free and taxable items. If receipt available, split accordingly.

Example 3 output

Date	Counterparty	Gross	Net	GST	Rate	BAS Label	Default?	Question?	Excluded?
12.04.2026	WOOLWORTHS 1234	-87.50	87.50 pending	0	--	G11	Y	Q1	"Supermarket: provide receipt to split GST-free food vs taxable items"

Example 4 -- Bank fee (input taxed financial supply)

Input line: 15.04.2026 ; CBA ACCOUNT FEE ; DEBIT ; Monthly account keeping fee ; AUD 10.00

Reasoning: In this example, the statement and fee terms establish an input-taxed account-keeping service. Record the $10 business purchase at G11 with zero GST credit. Classify other bank services from their actual terms and invoice; the bank name alone does not settle GST.

Example 4 output

Date	Counterparty	Gross	Net	GST	Rate	BAS Label	Default?	Question?	Excluded?
15.04.2026	CBA ACCOUNT FEE	-10.00	10.00	0	--	G11	N	--	"Input taxed financial supply"

Example 5 -- Export service sale (GST-free)

Input line: 20.04.2026 ; ACME CORP NZ ; CREDIT ; Invoice AU-2026-042 IT consulting April ; AUD 8,500.00

Reasoning: Incoming payment from a New Zealand company for IT consulting services. Services provided to a non-resident for consumption outside Australia are GST-free under Division 38-E (s 38-190). No GST charged. Input tax credits on costs related to making this supply are fully claimable. Confirm: (a) recipient is outside Australia; (b) service is consumed outside Australia; (c) invoice shows no GST with a note "GST-free export -- s 38-190". On Simpler BAS, include in G1 only. On Full BAS, include in G1 and G2.

Example 5 output

Date	Counterparty	Gross	Net	GST	Rate	BAS Label	Default?	Question?	Excluded?
20.04.2026	ACME CORP NZ	+8,500.00	+8,500.00	0	0%	G2	Y	Q2 (HIGH)	"Verify NZ recipient and offshore consumption"

Example 6 -- Merchant transaction fee

Input: 25.04.2026 ; STRIPE PAYMENTS AU ; DEBIT ; Transaction fees April ; AUD 145.20.

The name does not settle the GST treatment. In this example a valid Australian tax invoice establishes a taxable processing service with $13.20 GST, wholly for creditable business use. The cash debit is $145.20, net expense $132.00 and positive GST credit $13.20. If that evidence is absent, show a pending treatment and no verified credit until resolved. A supply of credit or a different cross-border arrangement may have a different result. GSTR 2019/2.

Example 6 output

Date	Counterparty	Bank amount	Net expense	GST credit	Label	Evidence
25.04.2026	STRIPE PAYMENTS AU	-145.20	132.00	13.20	G11	Valid tax invoice and wholly creditable use

Section 5 -- Tier 1 classification rules

Each rule states the legal source and the BAS label mapping. Apply silently if the data is unambiguous.

5.1 Taxable supplies (10%)

• Taxable supply conditions and mapping — Legislation: GST Act, s 9-5 (meaning of taxable supply), s 9-70 (rate). Default rate for any supply connected with Australia by a GST-registered entity in the course of an enterprise, unless the supply is GST-free (Division 38) or input taxed (Division 40). Australia has a single 10% rate -- no reduced rates, no multiple rate tiers. A supply is taxable if ALL conditions are met (s 9-5): 1. Made for consideration; 2. In the course or furtherance of an enterprise; 3. Connected with the indirect tax zone (Australia); 4. Supplier is registered or required to be registered; AND 5. NOT GST-free and NOT input taxed. Sales: G1 (and G6 derived). Purchases: G10 (capital) or G11 (non-capital). GST on sales: 1A. GST credits on purchases: 1B. Common taxable supplies: professional services (legal, accounting, consulting), commercial rent, construction, telecommunications, general insurance premiums, software licences, motor vehicle sales, restaurant/cafe meals, domestic transport, office supplies, equipment purchases. ((GST Act, s 9-5, s 9-70))

5.2 GST-free supplies (0%, credits retained)

• GST-free supplies overview — GST-free supplies attract 0% GST but the supplier retains full input tax credit entitlements on related costs. This mirrors the EU concept of zero-rated supplies. Sales: G1 and G2 (exports) or G3 (other GST-free). On Simpler BAS, include in G1 only. ((GST Act, Division 38))

Critical categories table ((GST Act, Division 38))

Category	Subdivision	Key items
Basic food	38-A	Bread, milk, meat, fruit, vegetables, flour, rice, eggs, butter, plain water, tea, coffee (unbrewed). EXCLUDES prepared/restaurant food, confectionery, soft drinks, snack foods, alcohol, ice cream.
Health services	38-B	GP, specialist, hospital, dental, physiotherapy, chiropractic, ambulance. Must be Medicare-eligible or registered health practitioner. EXCLUDES cosmetic/elective surgery, veterinary.
Education	38-C	School fees (primary/secondary), university tuition, TAFE/RTO vocational training. EXCLUDES commercial training, private tutoring.
Childcare	38-D	Approved long day care, family day care, before/after school care.
Exports of goods	38-E	Under section 38-185 item 1, export before or within 60 days after the earlier of receiving any consideration or issuing an invoice. Item 2 has a separate final-instalment trigger for qualifying instalment contracts. The Commissioner may allow further time. GST Act section 38-185
Exports of services	38-E	Services to non-resident consumed outside Australia.
Religious services	38-F	By religious institution as part of religious practice.
Water and sewerage	38-G	Supply of water by government/utility (basic supply).
Going concern	38-J	Sale of business as going concern (both registered, written agreement) -- but R-AU-4 fires.

GST-free food rules (Subdivision 38-A) table ((Subdivision 38-A))

Food item	Treatment	Reasoning
Fresh fruit and vegetables	GST-free	Basic food
Fresh meat, poultry, fish	GST-free	Basic food
Bread, rolls	GST-free	Basic food
Milk, cream, cheese	GST-free	Basic food
Rice, pasta, flour	GST-free	Basic food
Eggs	GST-free	Basic food
Cooking oil, margarine, butter	GST-free	Basic food
Baby food, infant formula	GST-free	Basic food
Bottled water (plain)	GST-free	Basic food
Tea, coffee (unbrewed)	GST-free	Basic food
Ordinary plain biscuits (not chocolate)	Taxable 10%	GST Act Schedule 1 item 32; specified breakfast-cereal biscuits and infant/invalid rusks have exceptions
Raw, unprocessed nuts	GST-free	Basic food
Confectionery (chocolate, lollies)	Taxable 10%	Schedule 1 exclusion
Soft drinks, energy drinks	Taxable 10%	Schedule 1 exclusion
Ice cream	Taxable 10%	Schedule 1 exclusion
Snack foods (chips, pretzels)	Taxable 10%	Schedule 1 exclusion
Prepared meals (takeaway, restaurant)	Taxable 10%	Food supplied ready for consumption
Hot food (pies, sausage rolls heated)	Taxable 10%	Heated for consumption
Alcohol	Taxable 10% + excise/WET	Never GST-free
Chocolate-coated biscuits	Taxable 10%	Confectionery
Muesli bars	Taxable 10%	Snack food
Honey-roasted/flavoured nuts	Taxable 10%	Snack food

5.3 Input taxed supplies and credit restrictions

• Input taxed supplies overview — Input taxed supplies overview: no GST is charged, and related acquisitions generally do not have a creditable purpose. Sales go to G4. Check financial-supply exceptions before treating every related purchase as a blocked G13 credit. Under section 11-15(4) and Division 189, acquisitions relating to financial supplies may remain creditable where the financial acquisitions threshold is not exceeded. Test both the $150,000 and 10% limbs over the required periods. Also check the borrowing exception in section 11-15(5) and reduced input tax credits for eligible acquisitions under Division 70. These are specific exceptions, not a general credit entitlement for residential rental costs. See GSTR 2003/9. GST-free supplies, by contrast, generally preserve credit entitlement. (GSTR 2003/9)

Critical categories table ((GST Act, Division 40))

Category	Section	Key items
Financial supplies	40-5	Interest, loan fees, currency exchange margins, credit card fees (issuer), share dealings, guarantee fees, life insurance, super fund management
Residential rent	40-35	Rental of existing residential premises. Commercial rent is taxable.
Sale of existing residential premises	40-65	Previously sold as residential, not new/substantially renovated
Life insurance	40-5	General insurance is taxable

Residential vs commercial boundary table

Supply	Treatment
Residential rent (existing premises)	Input taxed
Sale of existing residential premises	Input taxed
Sale of NEW residential premises	Taxable 10% (first sale after construction/substantial renovation)
Commercial rent (office, retail, warehouse)	Taxable 10%
Short-stay accommodation	Classify the premises and supply

5.4 Out-of-scope transactions (not on BAS)

Out-of-scope transactions table

Transaction	Reason
Wages, salaries, superannuation	Not a supply -- employment relationship
Dividends	Not a supply -- return on equity
Loan principal repayments	Not a supply -- repayment of capital
GST/income tax payments to ATO	Tax payment, not a supply
Private transactions by individuals	Not in course of enterprise
Owner drawings/transfers	Internal, not a supply
Gifts/donations (no consideration)	No consideration = not a supply

5.5 Reverse charge (Division 84)

• Australian reverse charge distinction from EU — Key Australian distinction from EU: In Australia, reverse charge on offshore supplies to registered recipients applies ONLY when the acquisition is NOT fully creditable. If the recipient would claim 100% input tax credit anyway, no reverse charge -- no revenue leakage. When reverse charge applies: - Output GST (self-assessed): include in 1A - Input tax credit (if any): include in 1B - NOT reported in G1 (total sales) - Both sides appear on BAS ((Division 84))
• Offshore digital supplies — Offshore digital supplies: section 9-25(5)(d) connects relevant supplies to Australian consumers with Australia. The usual registration threshold is at least $75,000 GST turnover. An ABN alone does not establish that a recipient is outside the Australian-consumer definition: the recipient must be GST-registered and acquire the supply wholly or partly for an enterprise. Suppliers must meet the evidence or reasonable-belief rules, including the ABN and registration declaration where applicable. Check other connection rules and any Division 84 reverse charge, particularly where the acquisition is not fully creditable. See GSTR 2017/1 and GST Act sections 9-25(7), 84-100. ([GSTR 2017/1] and GST Act sections 9-25(7), 84-100)

5.6 Input tax credit entitlement (Division 11)

• Entitlement conditions — Establish the s 11-5 creditable acquisition conditions, including taxable supply, consideration, registration and creditable purpose. Apply the attribution rules: generally hold a valid tax invoice before claiming, subject to the $82.50 including-GST exception and other lawful exceptions/discretion. The four-year claim limit is not permission to claim before obtaining required evidence. ((GST Act ss 11-5, 29-10, 29-80 and 93-5))
• Blocked credits — Generally no credit for acquisitions relating to input taxed supplies, subject to the financial-supply exceptions in section 5.3 (s 11-15 and Division 70); no credit for private/domestic use (s 11-15), entertainment where FBT exempt (s 69-5), non-deductible fines/penalties (s 69-5). ((s 11-15, s 69-5))
• Car limit — Input tax credit for a car is capped at car limit / 11. For 2024-25 and 2025-26: $69,674 / 11 = ~$6,334 maximum credit; for 2026-27: $69,883 / 11 = ~$6,353. No outright block on cars (unlike Malta). ((s 69-10))

5.7 Tax invoices (Division 29)

Tax invoice requirements table ((Division 29))

Requirement	Supplies < $1,000	Supplies >= $1,000
Marked "Tax Invoice"	Yes	Yes
Supplier identity (name, ABN)	Yes	Yes
Date of issue	Yes	Yes
Brief description	Yes	Yes
GST amount (or "price includes GST")	Yes	Yes
Recipient identity (name, ABN)	No	Yes

• No ABN withholding — Where required, withhold 47% and report at W4, subject to the entity’s withholding reporting class. Apply exceptions, including payments of $75 or less excluding GST and valid supplier statements where relevant. ((ATO PAYG withholding))

5.8 Adjustments (Divisions 19, 21 and 129)

An adjustment is not an error. It arises because something changed after the original supply or acquisition was correctly reported. Errors are dealt with under the correction rules; see au-bas-preparation.md Section 7 for the credit error and debit error time and value limits and for when a revision is required instead.

The two directions

Direction	Effect	Where it goes
Increasing adjustment	Increases net GST, either more GST on sales or less credit on purchases	1A if it relates to a supply, 1B if it reduces a credit
Decreasing adjustment	Decreases net GST, either less GST on sales or more credit on purchases	1A if it relates to a supply, 1B if it increases a credit

Common adjustment events

Event	Division	Treatment
Price increase or decrease after the supply	Div 19	Adjustment in the period the adjustment event is accounted for
Supply cancelled, or goods returned	Div 19	As above
Bad debt written off by the supplier, or a debt overdue 12 months	Div 21	Decreasing adjustment for the supplier, increasing adjustment for the recipient who claimed the credit
Bad debt later recovered	Div 21	Reverses the earlier adjustment to the extent recovered
Change in the extent of creditable purpose	Div 129	Compared over prescribed adjustment periods, with thresholds that can remove the need to adjust
Goods applied solely to private or domestic use	Div 130	Increasing adjustment
Cancellation of registration, with assets on hand	Div 138	Increasing adjustment
Becoming registered, with assets on hand acquired earlier	Div 129	Can give rise to a decreasing adjustment

Adjustment notes. A decreasing adjustment arising from an adjustment event on a supply generally cannot be claimed until an adjustment note is held, subject to the minor adjustment exemption and the Commissioner's determinations. The supplier issues the adjustment note. GST Act ss 29-20, 29-75

Attribution. An adjustment is attributed to the tax period in which the entity becomes aware of the adjustment event, not to the period of the original supply. Reopening the original period is the wrong treatment.

Bad debts, the two-sided rule. A supplier accounting on a non-cash basis who writes off a debt as bad, or holds a debt overdue 12 months or more, gets a decreasing adjustment. The recipient who claimed the credit and has not paid has a matching increasing adjustment. Both sides must be considered; a client who has not paid a supplier for over 12 months may owe GST back.

Division 129 in practice. The most common trigger is a property or asset whose actual use turns out to differ from the planned use, for example a development intended for sale that is rented out instead. Division 129 compares planned and actual use over set adjustment periods, and the number of adjustment periods depends on the value of the acquisition. This is fact-sensitive; escalate rather than estimate.

What is not an adjustment

• A mistake in the original reporting. That is an error.
• A delay in attributing a credit, where the entity simply claims it in a later period under the attribution rules.
• A change in the GST rate or law. There is none to date; the rate has been 10% since 1 July 2000.

Section 6 -- Tier 2 catalogue

For each ambiguity type: pattern, why the bank statement is insufficient, conservative default, question for the client.

6.1 Vehicle costs (fuel -- business or private?)

Pattern: BP, Shell, Caltex, Ampol, 7-Eleven fuel, Viva Energy. Why insufficient: business-use proportion unknown. Unlike Malta, Australia does NOT hard-block car GST credits -- but private-use portion must be excluded. Default: 0% credit. Question: "Is this fuel for a business vehicle? What percentage is business use vs private? Do you keep a logbook?"

6.2 Home office (utilities -- 70c/hr or actual?)

Pattern: Origin Energy, AGL, Telstra on a residential address; home internet. Why insufficient: if the client works from home, a portion of home expenses may be claimable. The ATO allows either the fixed-rate method (70 cents per hour from 2024-25 under PCG 2023/1; 67c applied for 2022-23 and 2023-24) or the actual-cost method with apportionment. For GST, the actual-cost method requires splitting the taxable portion. Default: 0% credit (cannot determine business proportion). Question: "Do you work from home? How many hours per week? Is this a dedicated business line/service or shared personal?"

6.3 Food purchases (Woolworths -- basic food GST-free or prepared?)

Pattern: Woolworths, Coles, IGA, Aldi, any supermarket. Why insufficient: a single supermarket receipt may contain GST-free basic food and taxable prepared food, confectionery, soft drinks, and non-food items. The receipt total alone cannot determine the split. Default: no credit claimed (pending evidence; G11 purchase with no verified credit). Question: "Could you provide the receipt? I need to split GST-free food items from taxable items to claim the correct credit."

6.4 Cash withdrawals

Pattern: ATM, cash withdrawal, CBA cash, Westpac cash. Why insufficient: unknown what cash was spent on. Default: exclude as owner drawing. Question: "What was the cash used for? If business expenses, do you have receipts?"

6.5 Insurance (some taxable, some input taxed -- which policy?)

Pattern: insurance premium or policy payment. Identify the policy and the invoice components. General insurance can contain GST, stamp duty and other amounts; use the actual GST component. Life insurance is generally input taxed; private health insurance is generally GST-free. Pending identification, show no verified credit. GST Act ss 38-55 and 40-5.

6.6 Mixed personal/business subscriptions

Pattern: Netflix, Spotify, Apple, Amazon Prime, gym membership. Why insufficient: if subscription is partly personal and partly business, only the business portion is creditable. Most streaming/entertainment subscriptions are purely personal. Default: exclude as private. Question: "Is this a business expense or personal? If mixed, what percentage is business use?"

6.7 Airbnb income (short-stay accommodation -- residential or commercial?)

Pattern: Airbnb or Stayz income. Determine whether the supply is residential premises or commercial residential accommodation from the premises and arrangement, not the booking channel or a three-month threshold. Check registration, taxable turnover and any platform fee separately. An ordinary residential letting is generally input taxed. GST Act ss 40-35 and 195-1; GSTR 2012/5.

Sheet "Transactions"

Columns:

• A–D: Date, counterparty, bank direction and description.
• E: Signed bank amount in AUD, retained unchanged for bank reconciliation.
• F: Net amount for accounting, based on the invoice and verified GST component.
• G: GST liability for a sale or verified GST credit for a purchase. Use positive amounts for ordinary transactions and negative amounts for supported reversals. For a wholly taxable GST-inclusive amount, G = M * ABS(E)/11, multiplied by the creditable-use proportion for a purchase. For mixed or specially valued supplies, use the invoice’s actual GST component with the reporting sign and creditable proportion instead. GST-free/input-taxed supplies and unsupported credits contribute zero. Record any pending credit in notes.
• H: One primary category: G1 for taxable sales, G2 for export sales, G3 for other GST-free sales, G4 for input-taxed sales, G10 for capital purchases, G11 for non-capital purchases, or EXCLUDED. Split genuinely mixed transactions into supported components without duplicating the bank amount.
• I–L: Provisional flag, question, exclusion reason and notes/evidence.
• M: Reporting sign, 1 for ordinary sales/purchases and -1 for a supported refund or reversal. Infer this from the transaction, not bank direction alone.
• N: GST-inclusive reporting amount = ABS(E) * M. This is positive for ordinary purchases despite the negative bank debit.

For H, use the primary categories above. Earlier G13/G14/G15 references describe calculation-worksheet exclusions and must not replace a G10/G11 purchase category. Keep the exclusion and creditability evidence in I–L. Retain the signed bank amount separately from positive reporting amounts.

Sheet "BAS Summary" (Full BAS)

BAS Summary formulas table

Label	Formula / rule
G1	Sum N for H equal to G1, G2, G3 or G4; exclude loans, transfers and other EXCLUDED credits
G2, G3	Sum N for the corresponding H category
G10, G11	Sum N for the corresponding purchase category, including purchases without credits where required by the BAS instructions
1A	Sum G for sales categories, plus supported GST adjustments
1B	Sum G for G10 and G11, plus supported credit adjustments
Net GST	1A - 1B

Use GST-inclusive reporting amounts consistently. Populate named cells with:

For example, G10 = SUMIFS(Transactions!N:N,Transactions!H:H,"G10"). G1 combines four such SUMIFS for its sales categories. 1B sums the verified credits in G for G10 and G11. Do not subtract non-creditable purchases again from a total of credits. G4–G9 and G12–G19 may support a separate calculation worksheet but are not all lodged BAS labels.

Sheet "Simpler BAS"

For eligible businesses with GST turnover below $10 million, report G1, 1A and 1B using the same definitions and formulas; complete any other tax obligations on the issued statement. Confirm the G1 GST-inclusive indicator.

Worksheet checks

• A taxable sale of $1,100 gives G1 $1,100 and 1A $100.
• A wholly creditable taxable purchase of $110 gives 1B $10 even though the bank amount is -$110. Together with the sale, net GST is $90.
• A $110 purchase with 50% creditable use gives a $5 credit if all other requirements are met. Do not exclude its private portion twice.
• A $1,000 loan deposit contributes zero to G1 and 1A. A supported $110 sales refund reduces reported sales by $110 and output GST by $10.
• GST-free purchases contribute no GST credit; unsupported acquisitions remain pending until entitlement and evidence are established.

ATO GST reporting; GST Act ss 9-70, 11-20 and 29-10.

Color and formatting conventions

Blue font for hardcoded values from the bank statement (column E of Transactions). Black for formulas. Green for cross-sheet references. Yellow background for any row where Default? = "Y".

Section 8 -- Australian bank statement reading guide

CSV format conventions. CBA NetBank exports use comma delimiters with DD/MM/YYYY dates. Columns typically: Date, Amount, Description, Balance. Westpac exports similar. ANZ uses Date, Transaction Details, Debit, Credit, Balance. NAB similar. Revolut and Wise use ISO dates. Always confirm column mapping before processing.

CBA NetBank specific. Description field often contains: merchant name, card number suffix, location. Direct debits show "DIRECT DEBIT" prefix. Transfers show "TRANSFER TO" or "TRANSFER FROM". Pay Anyone shows recipient name. BPAY shows biller name and reference.

Internal transfers and exclusions. Own-account transfers between the client's CBA, Westpac, etc. accounts. Labelled "TRANSFER TO [account name]", "INTERNAL TRANSFER", "OWN ACCOUNT". Always exclude.

Owner drawings. A sole trader cannot pay themselves wages. Any transfer to their personal account is a drawing. Exclude from BAS. An individual transferring from business to personal: exclude.

Refunds and reversals. Identify by "REFUND", "REVERSAL", "CHARGEBACK", "CREDIT ADJUSTMENT". Book as a negative in the same BAS label as the original transaction. Correction is in the period the refund is booked.

Foreign currency transactions. Convert to AUD at the transaction date rate. Use the RBA indicative exchange rate or the rate shown on the bank statement. Note the rate used in the Transactions sheet column L.

BSB and account numbers. BSB (6 digits, XX-XXXX format) identifies the bank and branch. Not directly relevant to GST classification but helps identify counterparty bank.

ABN on statements. Some business bank statements show the client's ABN. Verify it matches the ABN on the GST registration.

Cryptic descriptions. Card purchases with merchant terminal codes; BPAY payments with only biller codes. If the counterparty cannot be identified from the description, ask the client. Do not classify unidentified transactions.

PAYG and FBT lines. BAS payments to ATO may include PAYG withholding (W2), PAYG instalments (T7), and FBT instalments (F1). These are tax payments, not supplies. Exclude from GST classification but note for BAS completion (labels W1-W5, T1-T9, F1-F3).

Section 9 -- Onboarding fallback (only when inference fails)

Infer the client profile from the data first. Only ask questions the data could not answer.

9.1 Entity type and trading name

• Entity type inference and fallback — Inference rule: sole trader names match account holder; company names end in "Pty Ltd", "Ltd". Fallback question: "Are you a sole trader, partnership, company (Pty Ltd), or trust?" (9.1 Entity type and trading name)

9.2 GST registration status

• GST registration status inference — Verify GST registration and its effective date on the ABR, supported by the ATO account. A request for a BAS does not establish registration. Check PAYG activity statements separately. (9.2 GST registration status)

9.3 ABN

• ABN inference and fallback — Inference rule: may appear on bank statement header or invoices. Search descriptions. Fallback question: "What is your ABN? (11 digits)" (9.3 ABN)

9.4 Reporting period and method

• Reporting period inference and fallback — Inference rule: statement date range indicates quarter. Fallback question: "Which BAS period? Q1 (Jul-Sep), Q2 (Oct-Dec), Q3 (Jan-Mar), or Q4 (Apr-Jun)? Monthly or quarterly?" (9.4 Reporting period and method)

9.5 Simpler BAS or Full BAS

• Simpler BAS vs Full BAS inference and fallback — Inference rule: if turnover < $10M (likely for sole traders), Simpler BAS is default. Fallback question: "Are you on Simpler BAS (G1, 1A, 1B only) or do you report full BAS labels?" (9.5 Simpler BAS or Full BAS)

9.6 Accounting basis

• Accounting basis inference and fallback — Inference rule: not inferable from bank statement alone. Fallback question: "Are you on cash basis or accrual basis for GST?" (9.6 Accounting basis)

9.7 Industry and sector

• Industry and sector inference and fallback — Inference rule: counterparty mix, sales descriptions. IT, consulting, trades, retail, hospitality are recognisable from transaction patterns. Fallback question: "In one sentence, what does the business do?" (9.7 Industry and sector)

9.8 Input taxed supplies

• Input taxed supplies inference and fallback — Inference rule: presence of residential rental income, interest income from lending, financial service revenue. Fallback question: "Do you earn any income from residential property, financial services, or share trading?" If yes and non-de-minimis: R-AU-1 or R-AU-5 may fire. (9.8 Input taxed supplies)

9.9 Employees

• Employees inference and fallback — Inference rule: PAYG withholding payments, super guarantee payments, WorkCover. Fallback question: "Do you have employees? If so, how many?" (9.9 Employees)

9.10 Exports

• Exports inference and fallback — Inference rule: foreign currency credits, overseas counterparty names. Fallback question: "Do you sell goods or services to customers outside Australia?" (9.10 Exports)

Filing deadlines (quarterly)

Filing deadlines table (Filing deadlines table)

Quarter	Period	Due date
Q1	1 July -- 30 September	28 October
Q2	1 October -- 31 December	28 February
Q3	1 January -- 31 March	28 April
Q4	1 April -- 30 June	28 July

• Other deadline notes — Monthly GST is generally due on the 21st of the next month. Annual GST is generally due with the income-tax return, or 28 February after the year where no return is required. Check the actual statement, extensions and next-business-day rule. (ATO annual GST — https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/lodging-your-bas-or-annual-gst-return)

Penalties

• Failure to lodge (FTL) — The base penalty is one unit per 28-day period or part, capped at five units. Apply the relevant entity multipliers, dates and remission rules. The penalty unit is $364 from 1 July 2026. (Crimes (Amount of a Penalty Unit) Instrument 2026 — https://www.legislation.gov.au/F2026N00424/asmade/text)
• General Interest Charge (GIC) — Use the published quarterly ATO rate and applicable daily compounding. GIC and SIC incurred on or after 1 July 2025 are not deductible; preserve the earlier rule only for earlier-incurred interest. (ATO interest — https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/cost-of-managing-tax-affairs/interest-charged-by-the-ato)
• Shortfall penalties — Base rates can be 25%, 50% or 75% according to the conduct. A qualifying pre-notification voluntary disclosure generally reduces the penalty by 80% where the shortfall is at least $1,000 and 100% below that amount. The qualifying post-notification reduction is 20%. Apply the statutory conditions and any other adjustments. (TAA Schedule 1 s 284-225 — https://www.ato.gov.au/law/view/document?docid=PAC/19530001/SCH1-284-225)

Registration thresholds

Registration thresholds table (GST Act, s 23-5; s 144-5; s 9-25(5)(d), s 9-25(7) and Div 84)

Entity type	Threshold	Legislation
General business	$75,000/year	GST Act, s 23-5
Non-profit	$150,000/year	GST Act, s 23-5
Taxi/rideshare	Registration regardless of turnover	GST Act, s 144-5
Non-resident digital supplier (B2C)	$75,000 Australian turnover	s 9-25(5)(d), s 9-25(7) and Div 84

• GST turnover composition — GST turnover includes taxable + GST-free supplies. Excludes input taxed, not connected with Australia, capital asset sales (unless regularly dealing). (GST turnover composition)

Cash vs accrual basis

Cash vs accrual basis table (Cash vs accrual basis table)

Feature	Cash	Accrual
GST on sales reported	To the extent payment is received	Generally the earlier of any consideration or an invoice, subject to special rules
Input credits claimed	To the extent payment is made, with required evidence	Generally the earlier of any consideration or an invoice, with required evidence and applicable attribution rules
Who can use	Turnover < $2M (or $10M SBE)	Anyone

Key thresholds summary

Key thresholds summary table (s 23-5; TAA 1953; s 29-40; s 69-10; LCT Act; TAA Schedule 1; s 31-5; s 29-70)

Threshold	Value	Source
GST registration	$75,000	s 23-5
Simpler BAS eligibility	Turnover < $10M	TAA 1953
Cash basis eligibility	Turnover < $2M (or $10M SBE)	s 29-40
Car limit (2024-25)	$69,674	s 69-10
LCT threshold (2025-26, general / other vehicles)	$80,567	LCT Act / ATO car thresholds
LCT threshold (2024-25, fuel-efficient)	$91,387	LCT Act
No ABN withholding exemption	Payments of $75 or less excluding GST, subject to applicable rules	TAA Schedule 1
Monthly reporting	GST turnover >= $20M or another mandatory/elected monthly case	GST Act Division 27
Tax invoice -- simplified	Supplies < $1,000	s 29-70

Comparison with EU VAT (for practitioners familiar with EU systems)

Comparison table (Comparison table)

Feature	Australian GST	EU VAT
Number of rates	1 (10%)	2-4 per member state
Reverse charge trigger (B2B cross-border)	ONLY if not fully creditable	ALWAYS (Art. 196)
Intra-community regime	N/A	Zero-rated supply + acquisition
Entertainment credit	Follows FBT (credit if FBT paid)	Typically blocked outright
Motor vehicle credit	Allowed, capped at car limit	Often blocked (e.g. Malta 10th Schedule)
Financial supply credits	RITC at 75%/55% for certain services	No equivalent

Validation status

This skill is v2.0, rewritten in April 2026 to align with the Malta v2.0 structure. It supersedes v1.1 (April 2026, standalone monolithic skill). The Australian-specific content (BAS label mappings, rates, thresholds, GST-free food rules, input taxed categories) has been verified against the GST Act 1999, ATO guidance, and GST Regulations 2019.

Sources

Primary legislation:

1. A New Tax System (Goods and Services Tax) Act 1999 -- https://www.legislation.gov.au
2. Taxation Administration Act 1953, Schedule 1
3. GST Regulations 2019
4. A New Tax System (Luxury Car Tax) Act 1999
5. A New Tax System (Wine Equalisation Tax) Act 1999

ATO guidance: 6. ATO BAS instructions -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/lodging-your-bas 7. ATO GST registration -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst 8. ATO Simpler BAS -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/lodging-your-bas/simpler-bas 9. ATO food and GST -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/gst-and-food

Known gaps

1. The supplier pattern library in Section 3 covers the most common Australian counterparties but does not cover every local SME or regional brand. Add patterns as they emerge.
2. The worked examples are drawn from a hypothetical IT consultant in Sydney. They do not cover hospitality, retail, construction, or agriculture specifically.
3. The GST-free food table covers the most common items but Schedule 1 of the GST Act is detailed -- edge cases (e.g. specific bakery items, health food products) should be flagged [T2].
4. Car limit and LCT thresholds are 2024-25 values. Verify annually as they are indexed.
5. The reverse charge section is simplified for the common case (fully creditable recipient where reverse charge does NOT apply). Partially creditable recipients require more detailed treatment.
6. Wine Equalisation Tax and Luxury Car Tax are noted but not fully worked -- these are specialist areas.
7. Red flag thresholds (AUD $5,000 single transaction, $500 tax-delta, $10,000 absolute position) are conservative starting values for a typical Australian self-employed client -- not empirically calibrated.

Change log

• v2.0 (April 2026): Full rewrite to align with Malta v2.0 structure. Ten sections: quick reference (1), inputs and refusals (2), supplier pattern library with 12 sub-tables (3), six worked examples from CBA NetBank format (4), Tier 1 rules compressed (5), Tier 2 catalogue with 7 items (6), Excel template (7), bank statement reading guide (8), onboarding fallback with inference rules (9), reference material (10). Five Australia-specific refusals (R-AU-1 through R-AU-5).
• v1.1 (April 2026): Monolithic skill with classification rules, BAS labels, reverse charge, thresholds, edge cases, and test suite. Comprehensive but not aligned with v2.0 architecture.

Self-check (v2.4)

1. Quick reference at top with BAS label table and conservative defaults: yes (Section 1).
2. Supplier library as literal lookup tables: yes (Section 3, 12 sub-tables).
3. Worked examples from bank statement format: yes (Section 4, 6 examples from CBA NetBank).
4. Tier 1 rules compressed: yes (Section 5, 7 rules).
5. Tier 2 catalogue compressed with questions: yes (Section 6, 7 items).
6. Excel template specification: yes (Section 7).
7. Onboarding as fallback only, inference rules first: yes (Section 9, 10 items).
8. All 5 Australia-specific refusals present: yes (Section 2, R-AU-1 through R-AU-5).
9. Reference material at bottom: yes (Section 10).
10. GST-free food detail table explicit: yes (Section 5.2, 22-item food table).
11. Input taxed vs GST-free distinction explicit: yes (Section 5.2 and 5.3).
12. Reverse charge Australian exception (fully creditable = no reverse charge) explicit: yes (Section 5.5 + Example 1).
13. Bank fees as financial supply (input taxed, exclude) explicit: yes (Section 3.1 + Example 4).
14. Payment processor fees as financial supply explicit: yes (Section 3.8 + Example 6).
15. Supermarket split (GST-free food vs taxable items) explicit: yes (Section 3.6 + Example 3).

End of Australia GST Return Preparation Skill v2.4

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.

Contributed by Ryan Duguid.

Contributed by Ryan Duguid.

Contributed by Ryan Duguid.

Contributed by Ryan Duguid.

Contributed by Ryan Duguid.

Contributed by Ryan Duguid.