BAS Classifications-Updated

GST On Sales

When completing your BAS you must report taxable sales and the GST in their price at: G1 Total sales and 1A GST on sales.

List taxable sales and their descriptions

Transaction	Transaction description	GST tax code	Completing your BAS
Goods and services	Sales of goods and services in the course of your business or enterprise (ie trading stock).	GST	G1 Total sales 1A GST on sales
Assets	Sale of business assets such as office equipment, machinery and motor vehicles, including trade-ins and transfers of ownership.	GST	G1 Total sales 1A GST on sales
Property	If you are dealing with property (eg you sell, lease or develop) you may have to pay GST on the sale or lease of the property. The GST amount on property sales may be calculated on the full value of the sale or on the margin for the sale.	GST	G1 Total sales 1A GST on sales

GST-free sales

GST-free sales are sales where GST is not payable, but you may claim GST credits for purchases relating to these sales.

When completing your BAS you must report GST-free sales at G1 Total sales.

List of GST-free sales and their descriptions.

Transaction	Transaction description	GST tax code	Completing your BAS
Fresh food	Most basic foods and beverages, subject to certain exceptions.	No GST	G1 Total sales
Medical and health	Most medical, health and care services, medicine and eligible medical aids and appliances.	No GST	G1 Total sales
Education	Most education courses, course materials and related excursions or field trips.	No GST	G1 Total sales
Childcare	Eligible childcare services.	No GST	G1 Total sales
Exported goods and services	Export sales of goods (must be physically exported from Australia within certain timeframes) and services and other things provided to customers outside Australia. Specific rules apply to exports.	No GST	G1 Total sales
Sale of business	Sale of a business as a going concern where certain conditions are met.	No GST	G1 Total sales

Input-taxed sales

Input-taxed sales are sales where GST is not payable, and you generally can’t claim GST credits for purchases relating to these sales.

When completing your BAS you must report input-taxed sales at G1 Total sales.

List of input-taxed sales and their descriptions.

Transaction	Transaction description	GST tax code	Completing your BAS
Property	Supplies of residential rental premises and sales of existing residential premises (excluding new homes or commercial premises).	No GST	G1 Total sales
Financial Sales	Financial sales which include most transactions relating to money such as lending money, selling shares or other securities.	No GST	G1 Total sales
Fund-raising	Certain fund-raising activities of charities, gift-deductible entities and government schools.	No GST	G1 Total sales

Purchases with GST in the price

You can only claim GST credits for GST included in the price of purchases that you buy or import for your GST-registered business, and that relate to taxable sales or GST-free sales. A valid tax invoice for purchases over $82.50 is required to claim a GST credit.

To claim GST credits, when completing your BAS you must report the GST included in the price of your purchases at 1B GST on purchases.

You do not report your total purchases.

List of purchases with GST in the price and their descriptions.

Transaction	Transaction description	GST tax code	Completing your BAS
Goods and services	You can generally claim a credit for GST included in the price of any goods and services you buy or import for your GST registered business. Examples include: capital purchases such as motor vehicles, plant and equipment -– check to ensure capital purchases are allocated to the appropriate capital account inventory purchases (ie trading stock) normal running expenses such as leases, equipment rentals, stationery and repairs.	GST	1B GST on purchases
Imported goods (>$1,000)	Imports of most goods where customs value is greater than $1,000 and GST was paid.	GST	1B GST on purchases
Second-hand goods from a GST registered business OR ≤$300 value	If you purchase a second-hand item from a GST-registered business (excluding charitable organisations), GST credits may be claimed. Where second-hand items $300 or less are purchased from a private seller or a non GST-registered business for resale (ie trading stock), GST credits may be claimed even though the price did not include GST.	GST	1B GST on purchases
Business expenses for entertainment subject to fringe benefits tax (FBT)	You may claim GST credits for entertainment expenses you incur in providing entertainment that is subject to FBT. If you have elected to use the 50/50 split method for FBT purposes, then GST may be claimed on 50% of the expenses only.	GST	1B GST on purchases
Hire purchase	GST may be claimed on all components (including associated fees and the credit component) for hire purchase agreements entered into on or after 1 July 2012. Treat a hire purchase agreement as a standalone purchase in a tax period. Do not treat it as a purchase you make on a progressive or periodic basis.	GST	1B GST on purchases
Lease agreements	Lease agreements are generally subject to GST. How you claim GST credits depends on whether you account for GST on a cash or non-cash (accruals) basis.	GST	1B GST on purchases
Domestic business-related travel	GST credits for business-related domestic travel may be claimed, but must be apportioned between your business and private use. Expenses include: airfares taxi fares fares for ride-sourcing services.	GST	1B GST on purchases
Fuel (eg petrol, diesel and fuel blends)	You can generally claim a credit for GST included in the price of fuel you purchase for use in your business. You may also be eligible to claim fuel tax credits.	GST	1B GST on purchases 7D Fuel tax credit

Purchases with no GST in the price or where no GST credits can be claimed

List of purchases with no GST in the price or where no GST credits can be claimed. You do not need to report these purchases.

Transaction	Transaction description	GST tax code	Completing your BAS
GST-free goods and services	Purchases of GST-free goods and services. These include: most basic foods and beverages subject to certain exceptions.	No GST	Not reported on BAS for GST
Purchases from a business not registered for GST	Goods and services purchased from a business that is not GST-registered. Generally a business is only required to register for GST if their GST turnover is over $75,000 ($150,000 for not-for-profit organisations), although they may voluntarily register.	No GST	Not reported on BAS for GST
Life and health insurance	Insurance premiums for life insurance (input-taxed) and health insurance (GST-free).	No GST	Not reported on BAS for GST
Motor vehicle private sale	Purchase of a motor vehicle from a private seller not registered for GST.	No GST	Not reported on BAS for GST
Imports – $1,000 or <	Imports of goods where the customs value is $1,000 or less and no GST was paid.	No GST	Not reported on BAS for GST
Business expenses for FBT-exempt employee benefits	Some employee benefits are exempt from FBT and, even though the price of related business expenses may include GST, GST credits cannot be claimed. Exempt benefits include: minor benefits <$300 that satisfy five factors food or drink provided to current employees on a working day on business premises taxi travel to or from an employee’s place of work to an external venue (eg home or restaurant).	No GST	Not reported on BAS for GST
Second-hand goods from charity OR >$300 value	Purchase of a second-hand item from a charitable organisation is GST-free.	No GST	Not reported on BAS for GST
Second-hand goods from charity OR >$300 value	Where second-hand items over $300 are purchased from a private seller or non GST-registered business for resale (ie trading stock), GST credits may be claimed even though the price did not include GST. However, you must wait until you sell the item you have purchased to claim the GST credit.   If you are eligible to use the global accounting method, GST credits may be accumulated but you cannot claim these GST credits directly at 1B. Instead, use them to cancel out the GST you would otherwise pay on the items you sell.	GST	1B GST on purchases (claimed at the time you sell the item you have purchased).
International travel	International travel, including domestic leg of an overseas trip, is GST-free.	No GST	Not reported on BAS for GST
Purchases for input-taxed sales	Even if GST is included in the price, you cannot claim GST credits for purchases you intend to use to make input-taxed supplies (eg those related to providing residential accommodation).	No GST	Not reported on BAS for GST
Property	Where you buy: an existing residence property as a private sale (see ‘Items not reported on the BAS for GST purposes’ for appropriate GST tax code) new residential property for rental purposes GST-free farmland, property or land under the margin scheme (even if GST is included in the price) residential premises such as a room, unit or an apartment to lease to a business that supplies it as hotel accommodation with other facilities.	No GST	Not reported on BAS for GST

Mixed purchases (both taxable and GST-free and/or input-taxed components)

Mixed purchases contain both a taxable component and a GST-free and/or input-taxed component. On your BAS, you report the GST in the price of only the taxable component at 1B GST on purchases.

With mixed purchases there may be an option in your accounting software to enter the total amount of a tax invoice and manually override the GST amount if it is not 1/11th. This option is subject to accounting software having the functionality to override the GST amount.

List of mixed purchases and their descriptions.

Transaction	Transaction description	GST tax code/Manual override	Completing your BAS
Utility bills: electricity telephone internet	GST credits may be claimed on: connection fees supply and usage charges domestic mobile and landline call usage. GST credits cannot be claimed on: interest charged on late payments international and roaming calls.	GST – Code total amount of invoice as ‘GST’ and manually override GST dollar amount to reflect GST shown on the invoice.	1B GST on purchases Note: only claim GST dollar amount on invoice.
Government rates and water	In some localities a commercial rubbish collection fee may be applied. GST credits may be claimed on this component only. Government (council) rates and water supply charges are not subject to GST. GST credits cannot be claimed on: interest charged on late payments ambulance levy (some states and territories only).	GST – Code total amount of invoice as ‘GST’ and manually override GST dollar amount to reflect GST shown on the invoice.	1B GST on purchases Note: only claim GST dollar amount on invoice.
Mixed private and business use	For the proportion of business expense related to your business, GST credits may be claimable. You must accurately apportion your expenses between private and business use. Private expenses are entered in your private account (eg drawings). Business expenses are entered in your business expenses account. You need to be able to substantiate your claims – keeping a logbook and accurate records are important. For the proportion of private expense not related to your business, GST credits are not claimable.	GST – Note: No manual override should be done because business and private expenses are entered in their respective separate accounts.	1B GST on purchases
Purchase motor vehicle from GST- registered dealer or other business	GST credits may be claimed for the GST in the price of the vehicle and insurance components (eg compulsory third party, motor injury or transport accident charge). GST credits are not claimable on the following components which are not subject to GST: stamp duty on car stamp duty on motor vehicle insurance government registration fee.	GST – Note: No manual override should be done because motor vehicle and insurance expenses are entered in their respective separate accounts.	1B GST on purchases
Motor vehicle registration	GST credits may be claimed for the GST in the price of the insurance component of the registration (eg compulsory third party, motor injury and transport accident charge). GST credits are not claimable on the following components which are not subject to GST: stamp duty on motor vehicle insurance government registration fee.	GST – Code total amount of invoice as ‘GST’ and manually override GST dollar amount to reflect GST shown on the invoice.	1B GST on purchases Note: only claim GST dollar amount on invoice.
Insurance for business use	GST credits may be claimed for the GST in the price of the insurance premium component only. GST credits are not claimable on the following components which are not subject to GST: stamp duty component any settlement payouts as they are not reported on your BAS private use portion.	GST – Code total amount of invoice as ‘GST’ and manually override GST dollar amount to reflect GST shown on the invoice.	1B GST on purchases Note: only claim GST dollar amount on invoice.

Items not reported on the BAS for GST purposes

Transaction	Transaction description	GST tax code	Completing your BAS
Transactions not subject to GST	– Private expenses unrelated to your business – Depreciation – Dividends received – Interest paid Fines – Most Australian government taxes – Bank fees and charges – Principal payments on finance and loan interest – Stamp duty Sale of your home (main residence) – Superannuation – Salary and wages – Non-deductible entertainment expenses – Donations	Out of scope/No tax/Not reportable	Not reported on BAS for GST