Starting on July 1, 2017, businesses in Australia with turnover of less than $10 million will have a much simpler accounting process to adhere to. In the past, small businesses had to classify income in as many as six different categories. Under the new system, businesses can still use different categories for their own purposes, but they are required only to report the total amount of GST without classification, which better aligns with how they do business.
- GST codes have been simplified and the bas system updated
- Businesses are no longer required to report export sales, GST sales, and capital/non capital on the bas.
- This applies to businesses with profits below 10 billion dollars starting July 2017.
“Under the new “Small Business” definition, any business with turnover below $10 million will lodge the new Simpler BAS.”