Your GST reporting and payment cycle will be one of the following - Monthly,
Quarterly or Annually.
Monthly GST reporting
If you have a GST turnover of $20 million or more, you must report and pay GST monthly and lodge your activity statement electronically through the Business Portal. The ATO will also require some other businesses to report monthly – they will be notified accordingly to do this. Other businesses may choose to report GST monthly.
Quarterly GST reporting
If your GST turnover is less than $20 million and the ATO have not told you to report GST monthly, you can report and pay GST quarterly. There are 4 options;
1. Calculate and report GST quarterly
This option allows you to calculate, report and pay your actual GST amounts quarterly.
You can use either the accounts method or the calculation worksheet method to work out your GST amounts.
2. Calculate GST quarterly and report annually
This option allows you to report less information on your quarterly BAS but still calculate and pay your actual GST amounts quarterly. You can use either the accounts method or the calculation worksheet method to work out your GST amounts.
If you are not required to lodge an income tax return, you must lodge the report by 28 February following the financial year that the report or return covers. You must lodge your Annual GST information report using the paper-based form, even if you choose to lodge your quarterly activity statements electronically.
3. Pay GST instalments quarterly and report annually
This option is available to all businesses with a turnover of $2 million or less.
If you elect this option, you pay a quarterly GST instalment that the ATO will work out (you can vary it) and report your actual GST information annually on an Annual GST return.
Lodgement and payment dates
The following table summarises the payment and lodgement dates for businesses that report or pay GST quarterly.
Quarter | Payment & Lodgement Date |
Q1 - September quarter | 28 October |
Q2 - December quarter | 28 February |
Q3 - March quarter | 28 April |
Q4 - June quarter | 28 July |
If you have chosen to pay by instalments, your instalments are also due on the dates shown above.
If you are a primary producer or a special professional who pays only two GST instalments for the year, your instalments are due on 28 April and 28 July.
If the due date falls on a weekend or a public holiday, you have until the next business day to report and pay.
If you choose options 2 or 3, your Annual GST information report or Annual GST return will be due on the same date your income tax return is due. If you are not required to lodge an income tax return, your GST report or return will be due by 28 February following the financial year the report or return covers.
If your BAS is lodged by a registered Tax or BAS agent, you will generally receive up to an extra month to lodge and pay.
Annual GST reporting
You can elect to report GST annually if:
you are not required to register for GST
you have not elected to pay GST by instalments.
If you are using the deferred GST scheme, you need to withdraw from the scheme.
Reporting other tax obligations annually
If you elect to report GST annually and you report wine equalisation tax (WET) or luxury car tax (LCT), you will also report these obligations annually. This is because calculations for WET and LCT must be included with the GST calculation.
If you have other tax obligations, such as pay as you go (PAYG) withholding for employees, you will need to continue to lodge a business activity statement either monthly or quarterly showing these amounts.
How to elect to report GST annually
You can elect to report GST annually by contacting the ATO.
If you phone, have your ABN and either your TFN or activity statement document ID number (from the top right corner of the first page) on hand.
If you write, ensure your application is signed and contains your business’s name, ABN, a brief reason for your request and the date you would like your election to take effect.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own legal advisor, business advisor, or tax advisor with respect to matters referenced in this post. Bluechip Solutions Bookkeeping assumes no liability for actions taken in reliance upon the information contained herein.