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openaccountants/skills/australia-gst.md
australia-gst.md816 lines52.5 KB
v20
1---
2name: australia-gst
3description: Use this skill whenever asked to prepare, review, or classify transactions for an Australian GST return (Business Activity Statement / BAS) for any client. Trigger on phrases like "prepare BAS", "do the GST", "fill in BAS", "create the return", "GST return", "Activity Statement", or any request involving Australian GST filing. Also trigger when classifying transactions for GST purposes from bank statements, invoices, or other source data. This skill covers Australia only and covers both Simpler BAS and full BAS reporting. GST groups, margin scheme, partial exemption complex, and going concern are all in the refusal catalogue. ALWAYS read this skill before touching any GST-related work.
4version: 2.0
5---
6 
7# Australia GST Return Preparation Skill (BAS) v2.0
8 
9## Section 1 -- Quick reference
10 
11**Read this whole section before classifying anything.**
12 
13| Field | Value |
14|---|---|
15| Country | Australia (Commonwealth of Australia) |
16| Standard rate | 10% (single rate -- no reduced rates) |
17| GST-free (zero rate equivalent) | 0% -- input tax credits retained (Division 38) |
18| Input taxed (exempt equivalent) | No GST -- no input tax credits (Division 40) |
19| Return form | BAS (Business Activity Statement) -- Simpler BAS or Full BAS |
20| Filing portal | ATO Business Portal (https://bp.ato.gov.au) / myGov (https://my.gov.au) |
21| Authority | Australian Taxation Office (ATO) |
22| Currency | AUD only |
23| Filing frequencies | Monthly (turnover > $20M); Quarterly (standard); Annual (voluntary, turnover < $75K) |
24| Deadline | Monthly: 21st of following month; Quarterly: 28th of month after quarter; Annual: 28 February |
25| Registration threshold | AUD $75,000 (general); AUD $150,000 (non-profit); $1 (taxi/rideshare) |
26| Primary legislation | A New Tax System (Goods and Services Tax) Act 1999 (GST Act) |
27| Supporting legislation | Taxation Administration Act 1953 (Schedule 1); GST Regulations 2019; LCT Act 1999; WET Act 1999 |
28| Contributor | Open Accounting Skills Registry |
29| Validation date | April 2026 |
30| Skill version | 2.0 |
31 
32**Key BAS labels (the labels you will use most):**
33 
34| Label | Meaning |
35|---|---|
36| G1 | Total sales (GST-exclusive for taxable sales; include GST-free and input taxed) |
37| G2 | Export sales (GST-free, Division 38-E) |
38| G3 | Other GST-free sales (food, health, education -- Division 38-A to 38-D, 38-F+) |
39| G4 | Input taxed sales (financial supplies, residential rent -- Division 40) |
40| G5 | G2 + G3 + G4 (derived) |
41| G6 | G1 minus G5 (derived -- total taxable sales, the base for output GST) |
42| G7 | Adjustments on sales (bad debts, price changes -- Division 19) |
43| G10 | Capital purchases (plant, equipment, vehicles -- GST-inclusive) |
44| G11 | Non-capital purchases (operational expenses, stock -- GST-inclusive) |
45| G12 | G10 + G11 (derived) |
46| G13 | Purchases for making input taxed sales (no credit) |
47| G14 | Purchases with no GST in the price (from unregistered, GST-free, wages) |
48| G15 | Estimated purchases for private use (no credit) |
49| G16 | G13 + G14 + G15 (derived) |
50| G17 | G12 minus G16 (derived -- total creditable purchases) |
51| G18 | Adjustments on purchases (Division 19, Division 129) |
52| 1A | GST on sales (output GST) |
53| 1B | GST on purchases (input tax credits) |
54 
55**Simpler BAS (turnover < $10M, default since 1 July 2017):** Report only G1, 1A, 1B. No need for G2-G18.
56 
57**Full BAS:** Report all G labels plus 1A, 1B, and PAYG/FBT labels as applicable.
58 
59**GST calculation formulas:**
60 
61```
62GST = GST-inclusive price x 1/11
63GST = GST-exclusive price x 10%
64GST-inclusive = GST-exclusive x 1.1
65GST-exclusive = GST-inclusive / 1.1
66```
67 
68**Conservative defaults -- Australian-specific:**
69 
70| Ambiguity | Default |
71|---|---|
72| Unknown GST status of a sale | Taxable at 10% |
73| Unknown GST status of a purchase | No input tax credit claimed |
74| Unknown business-use proportion (vehicle, phone, home office) | 0% credit |
75| Unknown whether food is basic or prepared | Taxable at 10% (prepared food) |
76| Unknown counterparty registration status | Unregistered (no GST in price, G14) |
77| Unknown SaaS billing entity location | Non-resident, reverse charge applies |
78| Unknown insurance type (general vs life) | Input taxed (no credit) |
79| Unknown property type (commercial vs residential) | Residential (input taxed, no credit) |
80| Unknown whether transaction is in scope | In scope |
81| Cash withdrawal purpose | Owner drawing, exclude |
82 
83**Red flag thresholds:**
84 
85| Threshold | Value |
86|---|---|
87| HIGH single-transaction size | AUD $5,000 |
88| HIGH tax-delta on a single conservative default | AUD $500 |
89| MEDIUM counterparty concentration | >40% of output OR input |
90| MEDIUM conservative-default count | >4 across the return |
91| LOW absolute net GST position | AUD $10,000 |
92 
93---
94 
95## Section 2 -- Required inputs and refusal catalogue
96 
97### Required inputs
98 
99**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.
100 
101**Recommended** -- sales invoices for the period (especially for exports and GST-free supplies), purchase invoices for any input tax credit claim above AUD $500, the client's ABN in writing (11 digits), prior period BAS.
102 
103**Ideal** -- complete accounting software export (Xero, MYOB, QuickBooks), tax invoice register, prior period BAS with any credit carried forward.
104 
105**Refusal policy if minimum is missing -- SOFT WARN.** If no bank statement is available at all, hard stop. If bank statement only without invoices, proceed but record in the reviewer brief: "This BAS was produced from bank statement alone. The reviewer must verify, before lodging, that input tax credit claims above AUD $500 are supported by valid tax invoices and that all GST-free and reverse-charge classifications match the supplier's invoice."
106 
107### Australia-specific refusal catalogue
108 
109If any trigger fires, stop, output the refusal message verbatim, end the conversation. Refusal is a safety mechanism.
110 
111**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."
112 
113**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."
114 
115**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."
116 
117**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."
118 
119**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."
120 
121---
122 
123## Section 3 -- Supplier pattern library (Australian vendors)
124 
125This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment from the table directly. Do not second-guess. Do not consult Tier 1 rules -- the table is authoritative for patterns it covers.
126 
127**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.
128 
129### 3.1 Australian banks (fees input taxed -- exclude)
130 
131| Pattern | Treatment | Notes |
132|---|---|---|
133| CBA, COMMONWEALTH BANK, COMMBANK, NETBANK | EXCLUDE for bank fees/charges | Financial supply, input taxed. No GST on bank fees. |
134| WESTPAC, ST GEORGE, BANK OF MELBOURNE, BANKSA | EXCLUDE for bank fees/charges | Same -- all Westpac group |
135| ANZ, ANZ BANK | EXCLUDE for bank fees/charges | Financial supply, input taxed |
136| NAB, NATIONAL AUSTRALIA BANK | EXCLUDE for bank fees/charges | Financial supply, input taxed |
137| MACQUARIE, MACQUARIE BANK | EXCLUDE for bank fees/charges | Financial supply, input taxed |
138| BENDIGO BANK, ADELAIDE BANK | EXCLUDE for bank fees/charges | Financial supply, input taxed |
139| SUNCORP BANK, BOQ, BANK OF QUEENSLAND | EXCLUDE for bank fees/charges | Financial supply, input taxed |
140| UP BANK, ING DIRECT, ING AUSTRALIA | EXCLUDE for bank fees/charges | Financial supply, input taxed |
141| REVOLUT, WISE (fee lines) | EXCLUDE for transaction/maintenance fees | Check for separate taxable subscription invoices |
142| INTEREST, INT PAID, INT RECEIVED | EXCLUDE | Interest income/expense, input taxed or out of scope |
143| LOAN, HOME LOAN, PERSONAL LOAN, MORTGAGE | EXCLUDE | Loan principal movement, out of scope |
144 
145### 3.2 ATO and government (exclude entirely)
146 
147| Pattern | Treatment | Notes |
148|---|---|---|
149| ATO, AUSTRALIAN TAXATION OFFICE | EXCLUDE | Tax payment (GST, PAYG, income tax), not a supply |
150| ATO BAS, BAS PAYMENT | EXCLUDE | GST remittance |
151| ASIC, AUSTRALIAN SECURITIES | EXCLUDE | Regulatory fee -- note: ASIC annual review fee has no GST |
152| COUNCIL RATES, CITY OF, SHIRE OF | EXCLUDE | Local government rates, not a supply |
153| STATE REVENUE, OSR, REVENUE NSW, SRO VIC | EXCLUDE | State tax (payroll tax, stamp duty, land tax) |
154| CENTRELINK, SERVICES AUSTRALIA | EXCLUDE | Government benefit, not a supply |
155| DEPARTMENT OF, DEPT OF | EXCLUDE | Government fee, sovereign act |
156| WORKCOVER, WORKSAFE, ICARE | Domestic 10% | Workers compensation premium -- taxable supply, GST claimable |
157 
158### 3.3 Australian utilities (taxable 10%)
159 
160| Pattern | Treatment | BAS Label | Notes |
161|---|---|---|---|
162| ORIGIN ENERGY, ORIGIN | Domestic 10% | G11 | Electricity, gas -- overhead |
163| AGL, AGL ENERGY | Domestic 10% | G11 | Electricity, gas -- overhead |
164| ENERGY AUSTRALIA, ENERGYAUST | Domestic 10% | G11 | Electricity, gas -- overhead |
165| TELSTRA, TELSTRA CORP | Domestic 10% | G11 | Telecommunications -- overhead |
166| OPTUS, SINGTEL OPTUS | Domestic 10% | G11 | Telecommunications -- overhead |
167| TPG, TPG TELECOM, VODAFONE AU, IINET | Domestic 10% | G11 | Telecommunications/broadband -- overhead |
168| NBN CO, NBN | Domestic 10% | G11 | National Broadband Network -- overhead |
169| ALINTA ENERGY, RED ENERGY, SIMPLY ENERGY | Domestic 10% | G11 | Electricity, gas -- overhead |
170| SYDNEY WATER, MELBOURNE WATER, SA WATER | Domestic 10% | G11 | Water/sewerage -- overhead (some water supply is GST-free but metered charges are taxable) |
171 
172### 3.4 Australian insurance (mixed treatment)
173 
174| Pattern | Treatment | Notes |
175|---|---|---|
176| QBE, QBE INSURANCE | Domestic 10% | General insurance -- taxable, GST claimable |
177| SUNCORP INSURANCE, GIO, AAMI | Domestic 10% | General insurance -- taxable |
178| NRMA INSURANCE, NRMA | Domestic 10% | General insurance -- taxable |
179| ALLIANZ AUSTRALIA | Domestic 10% | General insurance -- taxable |
180| CGU, ZURICH AUSTRALIA | Domestic 10% | General insurance -- taxable |
181| AMP LIFE, MLC LIFE, TAL LIFE | EXCLUDE | Life insurance -- input taxed, Division 40 |
182| HEALTH INSURANCE, MEDIBANK, BUPA, HCF, NIB | EXCLUDE | Private health insurance -- input taxed financial supply |
183| WORKCOVER, WORKSAFE, ICARE | Domestic 10% | Workers comp premium is taxable at 10% |
184 
185### 3.5 Australian transport (taxable 10%)
186 
187| Pattern | Treatment | BAS Label | Notes |
188|---|---|---|---|
189| UBER AU, UBER AUSTRALIA, UBER *AU | Domestic 10% | G11 | Rideshare -- taxable. Driver must be GST-registered regardless of turnover. |
190| DIDI, DIDI AU | Domestic 10% | G11 | Rideshare -- taxable |
191| 13CABS, SILVER TOP, TAXI | Domestic 10% | G11 | Taxi -- taxable (mandatory GST registration) |
192| SYDNEY TRAINS, TRANSPORT NSW, OPAL | Domestic 10% | G11 | Public transport -- taxable at 10% (Australia does not zero-rate public transport) |
193| METRO TRAINS MELBOURNE, MYKI, PTV | Domestic 10% | G11 | Public transport -- taxable at 10% |
194| TRANSLINK, GO CARD | Domestic 10% | G11 | QLD public transport -- taxable |
195| QANTAS, QANTAS AIRWAYS (domestic) | Domestic 10% | G11 | Domestic flights -- taxable at 10% |
196| VIRGIN AUSTRALIA (domestic) | Domestic 10% | G11 | Domestic flights -- taxable |
197| JETSTAR (domestic) | Domestic 10% | G11 | Domestic flights -- taxable |
198| QANTAS (international), VIRGIN (international) | GST-free | G14 | International flights -- GST-free export (Division 38-E). Check ticket destination. |
199| TOLL, LINKT, TRANSURBAN, CITYLINK, EASTLINK | Domestic 10% | G11 | Toll road charges -- taxable |
200 
201### 3.6 Australian food (basic food GST-free, prepared food 10%)
202 
203| Pattern | Treatment | Notes |
204|---|---|---|
205| 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 no receipt: 50% GST-free / 50% taxable conservative split. |
206| COLES, COLES EXPRESS | TIER 2 -- split required | Same as Woolworths |
207| IGA, FOODWORKS, ALDI | TIER 2 -- split required | Same -- basic food GST-free, other items 10% |
208| HARRIS FARM, FRUIT MARKET, GREENGROCER | GST-free | Basic food (fruit, vegetables) -- Division 38-A |
209| UBER EATS, DOORDASH, MENULOG, DELIVEROO | Domestic 10% | Prepared/delivered food -- taxable. Delivery fee also taxable. |
210| MCDONALD'S, KFC, HUNGRY JACK'S, SUBWAY, DOMINOS | Domestic 10% | Prepared food/restaurant meals -- always taxable |
211| RESTAURANT, CAFE, BISTRO, PIZZERIA | Domestic 10% | Prepared food -- always taxable |
212| BWS, DAN MURPHY'S, LIQUORLAND, FIRST CHOICE | Domestic 10% | Alcohol -- always taxable at 10% (plus excise/WET) |
213 
214### 3.7 SaaS (reverse charge from non-resident suppliers)
215 
216These are billed from non-resident entities. For a fully creditable recipient, reverse charge does NOT apply (Australian exception -- Division 84). For a client making any input taxed supplies, reverse charge applies on the non-creditable portion.
217 
218| Pattern | Billing entity | Treatment | Notes |
219|---|---|---|---|
220| 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. |
221| 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. |
222| ADOBE | Adobe Systems Software Ireland Ltd (IE) | Non-resident supply | Check invoice |
223| META, FACEBOOK ADS | Meta Platforms Ireland Ltd (IE) | Non-resident supply | Check invoice for AU GST |
224| SLACK, SALESFORCE | Slack Technologies / Salesforce (US or IE entity) | Non-resident supply | Check invoice |
225| ATLASSIAN | Atlassian Pty Ltd (AU) | Domestic 10% | Atlassian is Australian -- domestic taxable supply, full credit |
226| CANVA | Canva Pty Ltd (AU) | Domestic 10% | Australian entity -- domestic taxable supply |
227| XERO | Xero Limited (NZ) or Xero Australia Pty Ltd | Check invoice | If AU entity: domestic 10%. If NZ entity: non-resident supply. |
228| ZOOM | Zoom Video Communications (US) | Non-resident supply | Check invoice for AU GST registration |
229| DROPBOX | Dropbox (IE or US) | Non-resident supply | Check invoice |
230| 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. |
231 
232**Important note on non-resident digital supplies:** 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.
233 
234### 3.8 Payment processors (financial supply -- input taxed)
235 
236| Pattern | Treatment | Notes |
237|---|---|---|
238| STRIPE AU, STRIPE PAYMENTS AUSTRALIA | EXCLUDE for transaction fees | Payment processing fees are financial supply, input taxed. No GST credit. |
239| STRIPE (monthly platform fee) | Check invoice | Platform subscription fee (separate from transaction fees) may be taxable at 10% if invoiced by AU entity. |
240| PAYPAL, PAYPAL AUSTRALIA | EXCLUDE for transaction fees | Financial supply, input taxed |
241| SQUARE AU, SQUARE AUSTRALIA | EXCLUDE for transaction fees | Financial supply, input taxed |
242| TYRO, TYRO PAYMENTS | EXCLUDE for transaction fees | Financial supply, input taxed |
243| AFTERPAY, ZIP PAY, ZIP MONEY | EXCLUDE | BNPL fees -- financial supply, input taxed |
244| EFTPOS, MERCHANT FEE | EXCLUDE | Card processing fee -- financial supply, input taxed |
245 
246### 3.9 Professional services (taxable 10%)
247 
248| Pattern | Treatment | BAS Label | Notes |
249|---|---|---|---|
250| Accountant names, CPA, CA, CHARTERED ACCOUNTANT | Domestic 10% | G11 | Professional service -- always deductible if business purpose |
251| TAX AGENT, BAS AGENT, BOOKKEEPER | Domestic 10% | G11 | Tax/BAS agent fees -- deductible |
252| SOLICITOR, LAWYER, BARRISTER, LAW FIRM | Domestic 10% | G11 | Legal fees -- deductible if business purpose |
253| ARCHITECT, ENGINEER, SURVEYOR | Domestic 10% | G11 | Professional service |
254| MARKETING, ADVERTISING, DESIGN, AGENCY | Domestic 10% | G11 | Business service |
255| CLEANER, CLEANING, OFFICE CLEANING | Domestic 10% | G11 | Business service |
256| IT SUPPORT, COMPUTER, TECH SUPPORT | Domestic 10% | G11 | Business service |
257 
258### 3.10 Property (commercial vs residential)
259 
260| Pattern | Treatment | Notes |
261|---|---|---|
262| COMMERCIAL RENT, OFFICE RENT, WAREHOUSE RENT | Domestic 10% | Commercial lease -- landlord must be GST-registered. GST credit claimable. |
263| RETAIL LEASE, SHOP RENT, INDUSTRIAL RENT | Domestic 10% | Commercial lease -- taxable |
264| RESIDENTIAL RENT, HOME RENT, APARTMENT RENT | EXCLUDE | Residential rent -- input taxed (Division 40). No GST, no credit on related costs. |
265| 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). |
266| STRATA, BODY CORPORATE, OWNERS CORP | TIER 2 | Commercial strata levies: 10%, credit claimable. Residential strata: no GST (input taxed). |
267| AIRBNB, STAYZ, BOOKING.COM (income) | Domestic 10% | Short-stay accommodation is commercial, not residential -- taxable at 10% if registered. [T2] if ambiguous duration. |
268 
269### 3.11 Superannuation (not a supply -- exclude)
270 
271| Pattern | Treatment | Notes |
272|---|---|---|
273| SUPER, SUPERANNUATION, SUPER FUND | EXCLUDE | Employer SG contributions -- not a supply, out of scope for GST |
274| AUSTRALIAN SUPER, REST SUPER, HOSTPLUS | EXCLUDE | Super fund contributions -- out of scope |
275| SUNSUPER, CBUS, HESTA, UNISUPER | EXCLUDE | Super fund contributions -- out of scope |
276| SMSF, SELF MANAGED SUPER | EXCLUDE | SMSF contributions -- out of scope |
277 
278### 3.12 Payroll (exclude entirely)
279 
280| Pattern | Treatment | Notes |
281|---|---|---|
282| SALARY, WAGES, PAYROLL, PAY RUN | EXCLUDE | Employment relationship -- not a supply, out of scope |
283| SUPER GUARANTEE, SGC, SG PAYMENT | EXCLUDE | Superannuation contribution -- out of scope |
284| WORKCOVER, WORKSAFE PREMIUM, ICARE | Domestic 10% | Exception: workers comp premium IS taxable at 10%, GST credit claimable |
285| PAYG WITHHOLDING, TAX WITHHELD | EXCLUDE | PAYG withholding remitted to ATO -- tax payment |
286| LEAVE LOADING, ANNUAL LEAVE, LONG SERVICE | EXCLUDE | Employment entitlement -- out of scope |
287| DIRECTOR FEE (outgoing) | EXCLUDE | Director fees -- generally out of scope for GST |
288 
289---
290 
291## Section 4 -- Worked examples
292 
293These 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.
294 
295### Example 1 -- Non-resident SaaS, reverse charge not applicable (fully creditable)
296 
297**Input line:**
298`05.04.2026 ; GOOGLE ASIA PACIFIC PTE LTD ; DEBIT ; Google Workspace Business ; AUD 21.60`
299 
300**Reasoning:**
301Google 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.
302 
303**Output:**
304 
305| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
306|---|---|---|---|---|---|---|---|---|---|
307| 05.04.2026 | GOOGLE ASIA PACIFIC | -21.60 | -21.60 | 0 | N/A | G14 | N | -- | -- |
308 
309### Example 2 -- Local utility, standard 10%
310 
311**Input line:**
312`10.04.2026 ; TELSTRA CORP LTD ; DEBIT ; Monthly plan Apr 2026 ; AUD 99.00`
313 
314**Reasoning:**
315Telstra is an Australian GST-registered entity (Section 3.3). Telecommunications are taxable at 10%. The $99.00 is GST-inclusive. GST = 99.00 / 11 = $9.00. Net = $90.00. Full input tax credit claimable for business use. If mixed personal/business use, apportion -- but default for a business-only phone line is 100% credit.
316 
317**Output:**
318 
319| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
320|---|---|---|---|---|---|---|---|---|---|
321| 10.04.2026 | TELSTRA CORP LTD | -99.00 | -90.00 | -9.00 | 10% | G11 | N | -- | -- |
322 
323### Example 3 -- Supermarket purchase (mixed GST-free and taxable)
324 
325**Input line:**
326`12.04.2026 ; WOOLWORTHS 1234 SYDNEY ; DEBIT ; Grocery purchase ; AUD 87.50`
327 
328**Reasoning:**
329Woolworths 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.
330 
331**Output:**
332 
333| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
334|---|---|---|---|---|---|---|---|---|---|
335| 12.04.2026 | WOOLWORTHS 1234 | -87.50 | -87.50 | 0 | -- | G14 | Y | Q1 | "Supermarket: provide receipt to split GST-free food vs taxable items" |
336 
337### Example 4 -- Bank fee (input taxed financial supply)
338 
339**Input line:**
340`15.04.2026 ; CBA ACCOUNT FEE ; DEBIT ; Monthly account keeping fee ; AUD 10.00`
341 
342**Reasoning:**
343CBA bank fees are a financial supply under Division 40. Financial supplies are input taxed -- no GST is charged, and no input tax credit is available. Exclude from BAS input claims entirely. Note: some bank "account-keeping fees" may technically include a taxable component if the bank issues a tax invoice showing GST -- but the default for bank charges is input taxed / excluded unless the tax invoice explicitly shows GST.
344 
345**Output:**
346 
347| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
348|---|---|---|---|---|---|---|---|---|---|
349| 15.04.2026 | CBA ACCOUNT FEE | -10.00 | -- | -- | -- | -- | N | -- | "Input taxed financial supply" |
350 
351### Example 5 -- Export service sale (GST-free)
352 
353**Input line:**
354`20.04.2026 ; ACME CORP NZ ; CREDIT ; Invoice AU-2026-042 IT consulting April ; AUD 8,500.00`
355 
356**Reasoning:**
357Incoming 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.
358 
359**Output:**
360 
361| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
362|---|---|---|---|---|---|---|---|---|---|
363| 20.04.2026 | ACME CORP NZ | +8,500.00 | +8,500.00 | 0 | 0% | G1, G2 | Y | Q2 (HIGH) | "Verify NZ recipient and offshore consumption" |
364 
365### Example 6 -- Stripe transaction fee (financial supply)
366 
367**Input line:**
368`25.04.2026 ; STRIPE PAYMENTS AU ; DEBIT ; Transaction fees April ; AUD 145.20`
369 
370**Reasoning:**
371Stripe payment processing fees are a financial supply (payment facilitation). Financial supplies are input taxed under Division 40. No GST credit claimable on transaction fees. Exclude. Note: Stripe's monthly platform subscription fee (if billed separately by an Australian entity with a tax invoice showing GST) IS taxable at 10% and credit IS claimable -- but the transaction processing fees themselves are a financial supply.
372 
373**Output:**
374 
375| Date | Counterparty | Gross | Net | GST | Rate | BAS Label | Default? | Question? | Excluded? |
376|---|---|---|---|---|---|---|---|---|---|
377| 25.04.2026 | STRIPE PAYMENTS AU | -145.20 | -- | -- | -- | -- | N | -- | "Financial supply, input taxed" |
378 
379---
380 
381## Section 5 -- Tier 1 classification rules
382 
383Each rule states the legal source and the BAS label mapping. Apply silently if the data is unambiguous.
384 
385### 5.1 Taxable supplies (10%)
386 
387**Legislation:** GST Act, s 9-5 (meaning of taxable supply), s 9-70 (rate).
388 
389Default 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.
390 
391A supply is taxable if ALL conditions are met (s 9-5):
3921. Made for consideration;
3932. In the course or furtherance of an enterprise;
3943. Connected with the indirect tax zone (Australia);
3954. Supplier is registered or required to be registered; AND
3965. NOT GST-free and NOT input taxed.
397 
398Sales: G1 (and G6 derived). Purchases: G10 (capital) or G11 (non-capital). GST on sales: 1A. GST credits on purchases: 1B.
399 
400Common 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.
401 
402### 5.2 GST-free supplies (0%, credits retained)
403 
404**Legislation:** GST Act, Division 38.
405 
406GST-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.
407 
408Sales: G1 and G2 (exports) or G3 (other GST-free). On Simpler BAS, include in G1 only.
409 
410**Critical categories:**
411 
412| Category | Subdivision | Key items |
413|---|---|---|
414| 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. |
415| Health services | 38-B | GP, specialist, hospital, dental, physiotherapy, chiropractic, ambulance. Must be Medicare-eligible or registered health practitioner. EXCLUDES cosmetic/elective surgery, veterinary. |
416| Education | 38-C | School fees (primary/secondary), university tuition, TAFE/RTO vocational training. EXCLUDES commercial training, private tutoring. |
417| Childcare | 38-D | Approved long day care, family day care, before/after school care. |
418| Exports of goods | 38-E | Goods physically exported within 60 days of supply. |
419| Exports of services | 38-E | Services to non-resident consumed outside Australia. |
420| Religious services | 38-F | By religious institution as part of religious practice. |
421| Water and sewerage | 38-G | Supply of water by government/utility (basic supply). |
422| Going concern | 38-J | Sale of business as going concern (both registered, written agreement) -- but R-AU-4 fires. |
423 
424**GST-free food rules (Subdivision 38-A) -- the detail that matters:**
425 
426| Food item | Treatment | Reasoning |
427|---|---|---|
428| Fresh fruit and vegetables | GST-free | Basic food |
429| Fresh meat, poultry, fish | GST-free | Basic food |
430| Bread, rolls | GST-free | Basic food |
431| Milk, cream, cheese | GST-free | Basic food |
432| Rice, pasta, flour | GST-free | Basic food |
433| Eggs | GST-free | Basic food |
434| Cooking oil, margarine, butter | GST-free | Basic food |
435| Baby food, infant formula | GST-free | Basic food |
436| Bottled water (plain) | GST-free | Basic food |
437| Tea, coffee (unbrewed) | GST-free | Basic food |
438| Plain biscuits (not chocolate) | GST-free | Basic food |
439| Raw, unprocessed nuts | GST-free | Basic food |
440| Confectionery (chocolate, lollies) | Taxable 10% | Schedule 1 exclusion |
441| Soft drinks, energy drinks | Taxable 10% | Schedule 1 exclusion |
442| Ice cream | Taxable 10% | Schedule 1 exclusion |
443| Snack foods (chips, pretzels) | Taxable 10% | Schedule 1 exclusion |
444| Prepared meals (takeaway, restaurant) | Taxable 10% | Food supplied ready for consumption |
445| Hot food (pies, sausage rolls heated) | Taxable 10% | Heated for consumption |
446| Alcohol | Taxable 10% + excise/WET | Never GST-free |
447| Chocolate-coated biscuits | Taxable 10% | Confectionery |
448| Muesli bars | Taxable 10% | Snack food |
449| Honey-roasted/flavoured nuts | Taxable 10% | Snack food |
450 
451### 5.3 Input taxed supplies (no GST, no credits)
452 
453**Legislation:** GST Act, Division 40.
454 
455Input taxed supplies have NO GST charged and the supplier gets NO input tax credits on related costs. This mirrors the EU concept of exempt-without-credit supplies.
456 
457Sales: G4 (input taxed sales). Purchases related to input taxed supplies: G13 (no credit).
458 
459**Critical distinction:** GST-free and input taxed are NOT the same. GST-free suppliers retain input tax credit entitlements; input taxed suppliers do not. Confusing them produces opposite outcomes.
460 
461| Category | Section | Key items |
462|---|---|---|
463| Financial supplies | 40-5 | Interest, loan fees, currency exchange margins, credit card fees (issuer), share dealings, guarantee fees, life insurance, super fund management |
464| Residential rent | 40-35 | Rental of existing residential premises. Commercial rent is taxable. |
465| Sale of existing residential premises | 40-65 | Previously sold as residential, not new/substantially renovated |
466| Life insurance | 40-5 | General insurance is taxable |
467 
468**Residential vs commercial -- the boundary:**
469 
470| Supply | Treatment |
471|---|---|
472| Residential rent (existing premises) | Input taxed |
473| Sale of existing residential premises | Input taxed |
474| Sale of NEW residential premises | Taxable 10% (first sale after construction/substantial renovation) |
475| Commercial rent (office, retail, warehouse) | Taxable 10% |
476| Short-stay accommodation (hotel, Airbnb <3 months) | Taxable 10% (commercial, not residential) [T2 if ambiguous] |
477 
478### 5.4 Out-of-scope transactions (not on BAS)
479 
480| Transaction | Reason |
481|---|---|
482| Wages, salaries, superannuation | Not a supply -- employment relationship |
483| Dividends | Not a supply -- return on equity |
484| Loan principal repayments | Not a supply -- repayment of capital |
485| GST/income tax payments to ATO | Tax payment, not a supply |
486| Private transactions by individuals | Not in course of enterprise |
487| Owner drawings/transfers | Internal, not a supply |
488| Gifts/donations (no consideration) | No consideration = not a supply |
489 
490### 5.5 Reverse charge (Division 84)
491 
492**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.
493 
494When reverse charge applies:
495- Output GST (self-assessed): include in 1A
496- Input tax credit (if any): include in 1B
497- NOT reported in G1 (total sales)
498- Both sides appear on BAS
499 
500**"Netflix tax" (Division 83-5, since 1 July 2017):** Non-resident digital suppliers must register for GST if Australian turnover exceeds $75,000 and charge 10% on B2C supplies. For B2B where recipient provides ABN, supplier does NOT charge GST.
501 
502### 5.6 Input tax credit entitlement (Division 11)
503 
504A registered entity is entitled to an input tax credit if ALL conditions are met (s 11-5):
5051. Acquisition is for a creditable purpose (related to taxable or GST-free supplies);
5062. Supply was a taxable supply (GST in the price);
5073. Entity provides consideration;
5084. Entity is registered for GST; AND
5095. Entity holds a valid tax invoice (or can obtain one within 4 years).
510 
511**Blocked credits:** No credit for acquisitions relating to input taxed supplies (s 11-15), private/domestic use (s 11-15), entertainment where FBT exempt (s 69-5), non-deductible fines/penalties (s 69-5).
512 
513**Car limit:** Input tax credit for a car is capped at car limit / 11. For 2024-25: $69,674 / 11 = ~$6,334 maximum credit. No outright block on cars (unlike Malta).
514 
515### 5.7 Tax invoices (Division 29)
516 
517| Requirement | Supplies < $1,000 | Supplies >= $1,000 |
518|---|---|---|
519| Marked "Tax Invoice" | Yes | Yes |
520| Supplier identity (name, ABN) | Yes | Yes |
521| Date of issue | Yes | Yes |
522| Brief description | Yes | Yes |
523| GST amount (or "price includes GST") | Yes | Yes |
524| Recipient identity (name, ABN) | No | Yes |
525 
526**No ABN withholding:** If supplier does not quote ABN, payer must withhold 47% (top marginal + Medicare levy). Reported at BAS label W3. Exceptions for supplies < $75 (excl GST).
527 
528---
529 
530## Section 6 -- Tier 2 catalogue
531 
532For each ambiguity type: pattern, why the bank statement is insufficient, conservative default, question for the client.
533 
534### 6.1 Vehicle costs (fuel -- business or private?)
535 
536*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?"
537 
538### 6.2 Home office (utilities -- 70c/hr or actual?)
539 
540*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 (67 cents per hour from 1 July 2022) 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?"
541 
542### 6.3 Food purchases (Woolworths -- basic food GST-free or prepared?)
543 
544*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 (treat as no GST in price, G14). *Question:* "Could you provide the receipt? I need to split GST-free food items from taxable items to claim the correct credit."
545 
546### 6.4 Cash withdrawals
547 
548*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?"
549 
550### 6.5 Insurance (some taxable, some input taxed -- which policy?)
551 
552*Pattern:* insurance premium, policy payment, Suncorp, QBE, AMP. *Why insufficient:* general insurance (business, motor, property) is taxable at 10% with GST credit. Life insurance and private health insurance are input taxed (no credit). The bank statement description rarely identifies the policy type. *Default:* input taxed, no credit (conservative). *Question:* "Is this general insurance (business/property/vehicle), life insurance, or health insurance? General insurance has GST; life and health do not."
553 
554### 6.6 Mixed personal/business subscriptions
555 
556*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?"
557 
558### 6.7 Airbnb income (short-stay accommodation -- residential or commercial?)
559 
560*Pattern:* Airbnb payouts, Stayz payouts, short-term rental income. *Why insufficient:* short-stay accommodation (typically under 3 months) is treated as commercial accommodation, taxable at 10%. Long-term residential rental (over 3 months) is input taxed. The bank statement shows only an Airbnb payout amount. Also: if total Airbnb turnover is below $75,000, the host may not be required to register for GST. *Default:* [T2] flag for reviewer. *Question:* "Is this short-term rental (under 3 months per guest)? What is your total annual Airbnb income? Are you GST-registered for this activity?"
561 
562---
563 
564## Section 7 -- Excel working paper template (Australia-specific)
565 
566### Sheet "Transactions"
567 
568Columns:
569- A: Date
570- B: Counterparty (as per bank statement)
571- C: Type (DEBIT/CREDIT)
572- D: Description
573- E: Gross amount (AUD, from bank statement -- blue font, hardcoded)
574- F: Net amount (formula: if taxable, = E / 1.1; if GST-free or excluded, = E)
575- G: GST amount (formula: if taxable, = E / 11; if GST-free or excluded, = 0)
576- H: BAS label code (G1, G2, G3, G4, G10, G11, G13, G14, G15, or blank for excluded)
577- I: Default applied? (Y/N)
578- J: Question for client (text, or blank)
579- K: Excluded? (text reason, or blank)
580- L: Notes
581 
582### Sheet "BAS Summary" (Full BAS)
583 
584One row per BAS label. Column A is the label, column B is the description, column C is the value computed via formula.
585 
586```
587Sales:
588| G1 | Total sales | =SUMIFS(Transactions!F:F, Transactions!C:C, "CREDIT") |
589| G2 | Export sales | =SUMIFS(Transactions!F:F, Transactions!H:H, "G2") |
590| G3 | Other GST-free sales | =SUMIFS(Transactions!F:F, Transactions!H:H, "G3") |
591| G4 | Input taxed sales | =SUMIFS(Transactions!F:F, Transactions!H:H, "G4") |
592| G5 | GST-free + input taxed (derived)| =G2+G3+G4 |
593| G6 | Taxable sales (derived) | =G1-G5 |
594 
595Purchases:
596| G10 | Capital purchases | =SUMIFS(Transactions!E:E, Transactions!H:H, "G10") |
597| G11 | Non-capital purchases | =SUMIFS(Transactions!E:E, Transactions!H:H, "G11") |
598| G12 | Total purchases (derived) | =G10+G11 |
599| G13 | Purchases for input taxed | =SUMIFS(Transactions!E:E, Transactions!H:H, "G13") |
600| G14 | Purchases with no GST | =SUMIFS(Transactions!E:E, Transactions!H:H, "G14") |
601| G15 | Private use purchases | =SUMIFS(Transactions!E:E, Transactions!H:H, "G15") |
602| G16 | Non-creditable (derived) | =G13+G14+G15 |
603| G17 | Creditable purchases (derived) | =G12-G16 |
604 
605Tax:
606| 1A | GST on sales | =G6/11 |
607| 1B | GST on purchases | =G17/11 |
608 
609Net:
610| GST payable / (refundable) | =1A-1B |
611```
612 
613### Sheet "Simpler BAS"
614 
615For Simpler BAS clients (turnover < $10M), only three fields:
616 
617```
618| G1 | Total sales | =SUMIFS(Transactions!F:F, Transactions!C:C, "CREDIT") |
619| 1A | GST on sales | =SUM of GST from taxable sales transactions |
620| 1B | GST on purchases | =SUM of GST from creditable purchase transactions |
621| Net | GST payable / (refundable) | =1A-1B |
622```
623 
624### Color and formatting conventions
625 
626Blue 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".
627 
628---
629 
630## Section 8 -- Australian bank statement reading guide
631 
632**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.
633 
634**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.
635 
636**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.
637 
638**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.
639 
640**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.
641 
642**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.
643 
644**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.
645 
646**ABN on statements.** Some business bank statements show the client's ABN. Verify it matches the ABN on the GST registration.
647 
648**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.
649 
650**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).
651 
652---
653 
654## Section 9 -- Onboarding fallback (only when inference fails)
655 
656Infer the client profile from the data first. Only ask questions the data could not answer.
657 
658### 9.1 Entity type and trading name
659*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?"
660 
661### 9.2 GST registration status
662*Inference rule:* if asking for a BAS, they are registered. If turnover clearly below $75,000, may be voluntary. *Fallback question:* "Are you registered for GST? If so, since what date?"
663 
664### 9.3 ABN
665*Inference rule:* may appear on bank statement header or invoices. Search descriptions. *Fallback question:* "What is your ABN? (11 digits)"
666 
667### 9.4 Reporting period and method
668*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?"
669 
670### 9.5 Simpler BAS or Full BAS
671*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?"
672 
673### 9.6 Accounting basis
674*Inference rule:* not inferable from bank statement alone. *Fallback question:* "Are you on cash basis or accrual basis for GST?"
675 
676### 9.7 Industry and sector
677*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?"
678 
679### 9.8 Input taxed supplies
680*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.*
681 
682### 9.9 Employees
683*Inference rule:* PAYG withholding payments, super guarantee payments, WorkCover. *Fallback question:* "Do you have employees? If so, how many?"
684 
685### 9.10 Exports
686*Inference rule:* foreign currency credits, overseas counterparty names. *Fallback question:* "Do you sell goods or services to customers outside Australia?"
687 
688---
689 
690## Section 10 -- Reference material
691 
692### Filing deadlines (quarterly)
693 
694| Quarter | Period | Due date |
695|---|---|---|
696| Q1 | 1 July -- 30 September | 28 October |
697| Q2 | 1 October -- 31 December | 28 February |
698| Q3 | 1 January -- 31 March | 28 April |
699| Q4 | 1 April -- 30 June | 28 July |
700 
701Monthly: 21st of the following month. Annual: 28 February following financial year (FY ends 30 June). If due date falls on weekend/public holiday, next business day.
702 
703### Penalties
704 
705**Failure to lodge (FTL):** 1 penalty unit per 28-day period for small entities (turnover < $1M), up to 5 periods. Penalty unit: $330 (2024-25, indexed annually).
706 
707**General Interest Charge (GIC):** 90-day Bank Accepted Bill rate + 7% per annum. Calculated daily, compounded. Tax deductible.
708 
709**Shortfall penalties:** Reasonable care not taken: 25%. Recklessness: 50%. Intentional disregard: 75%. Reduced 20% for voluntary disclosure before audit.
710 
711### Registration thresholds
712 
713| Entity type | Threshold | Legislation |
714|---|---|---|
715| General business | $75,000/year | GST Act, s 23-5 |
716| Non-profit | $150,000/year | GST Act, s 23-5 |
717| Taxi/rideshare | $1 (must register) | GST Act, s 144-5 |
718| Non-resident digital supplier (B2C) | $75,000 Australian turnover | Division 83-5 |
719 
720GST turnover includes taxable + GST-free supplies. Excludes input taxed, not connected with Australia, capital asset sales (unless regularly dealing).
721 
722### Cash vs accrual basis
723 
724| Feature | Cash | Accrual |
725|---|---|---|
726| GST on sales reported | When payment received | When invoice issued |
727| Input credits claimed | When payment made | When invoice received |
728| Who can use | Turnover < $2M (or $10M SBE) | Anyone |
729 
730### Key thresholds summary
731 
732| Threshold | Value | Source |
733|---|---|---|
734| GST registration | $75,000 | s 23-5 |
735| Simpler BAS eligibility | Turnover < $10M | TAA 1953 |
736| Cash basis eligibility | Turnover < $2M (or $10M SBE) | s 29-40 |
737| Car limit (2024-25) | $69,674 | s 69-10 |
738| LCT threshold (2024-25, general) | $76,950 | LCT Act |
739| LCT threshold (2024-25, fuel-efficient) | $91,387 | LCT Act |
740| No ABN withholding exemption | Supplies < $75 excl GST | TAA Schedule 1 |
741| Monthly reporting | Turnover > $20M | TAA Schedule 1, s 31-5 |
742| Tax invoice -- simplified | Supplies < $1,000 | s 29-70 |
743 
744### Comparison with EU VAT (for practitioners familiar with EU systems)
745 
746| Feature | Australian GST | EU VAT |
747|---|---|---|
748| Number of rates | 1 (10%) | 2-4 per member state |
749| Reverse charge trigger (B2B cross-border) | ONLY if not fully creditable | ALWAYS (Art. 196) |
750| Intra-community regime | N/A | Zero-rated supply + acquisition |
751| Entertainment credit | Follows FBT (credit if FBT paid) | Typically blocked outright |
752| Motor vehicle credit | Allowed, capped at car limit | Often blocked (e.g. Malta 10th Schedule) |
753| Financial supply credits | RITC at 75%/55% for certain services | No equivalent |
754 
755### Validation status
756 
757This 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.
758 
759### Sources
760 
761**Primary legislation:**
7621. A New Tax System (Goods and Services Tax) Act 1999 -- https://www.legislation.gov.au
7632. Taxation Administration Act 1953, Schedule 1
7643. GST Regulations 2019
7654. A New Tax System (Luxury Car Tax) Act 1999
7665. A New Tax System (Wine Equalisation Tax) Act 1999
767 
768**ATO guidance:**
7696. ATO BAS instructions -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/lodging-your-bas
7707. ATO GST registration -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst
7718. ATO Simpler BAS -- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/lodging-your-bas/simpler-bas
7729. 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
773 
774### Known gaps
775 
7761. 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.
7772. The worked examples are drawn from a hypothetical IT consultant in Sydney. They do not cover hospitality, retail, construction, or agriculture specifically.
7783. 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].
7794. Car limit and LCT thresholds are 2024-25 values. Verify annually as they are indexed.
7805. 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.
7816. Wine Equalisation Tax and Luxury Car Tax are noted but not fully worked -- these are specialist areas.
7827. 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.
783 
784### Change log
785 
786- **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).
787- **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.
788 
789### Self-check (v2.0)
790 
7911. Quick reference at top with BAS label table and conservative defaults: yes (Section 1).
7922. Supplier library as literal lookup tables: yes (Section 3, 12 sub-tables).
7933. Worked examples from bank statement format: yes (Section 4, 6 examples from CBA NetBank).
7944. Tier 1 rules compressed: yes (Section 5, 7 rules).
7955. Tier 2 catalogue compressed with questions: yes (Section 6, 7 items).
7966. Excel template specification: yes (Section 7).
7977. Onboarding as fallback only, inference rules first: yes (Section 9, 10 items).
7988. All 5 Australia-specific refusals present: yes (Section 2, R-AU-1 through R-AU-5).
7999. Reference material at bottom: yes (Section 10).
80010. GST-free food detail table explicit: yes (Section 5.2, 22-item food table).
80111. Input taxed vs GST-free distinction explicit: yes (Section 5.2 and 5.3).
80212. Reverse charge Australian exception (fully creditable = no reverse charge) explicit: yes (Section 5.5 + Example 1).
80313. Bank fees as financial supply (input taxed, exclude) explicit: yes (Section 3.1 + Example 4).
80414. Payment processor fees as financial supply explicit: yes (Section 3.8 + Example 6).
80515. Supermarket split (GST-free food vs taxable items) explicit: yes (Section 3.6 + Example 3).
806 
807## End of Australia GST Return Preparation Skill v2.0
808 
809---
810 
811## Disclaimer
812 
813This 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.
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815The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
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Quality

Q2: Research-verified

Deep research against tax authority sources. Not yet tested on real data.

Needs real client data + practitioner sign-off to reach Q1.

Accountant Review

Unverified
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About

Use this skill whenever asked to prepare, review, or classify transactions for an Australian GST return (Business Activity Statement / BAS) for any client. Trigger on phrases like "prepare BAS", "do the GST", "fill in BAS", "create the return", "GST return", "Activity Statement", or any request involving Australian GST filing. Also trigger when classifying transactions for GST purposes from bank statements, invoices, or other source data. This skill covers Australia only and covers both Simpler BAS and full BAS reporting. GST groups, margin scheme, partial exemption complex, and going concern are all in the refusal catalogue. ALWAYS read this skill before touching any GST-related work.

AUty-2025

2 of 6 in the AU workflow: