In order to reduce the burden of GST compliance on small businesses, tax professionals and software providers, the ATO has decided to simplify the Business Activity Statements.

This will come into effect from 1st July 2017 where the number of labels on the activity statement will be reduced. For this purpose, the requirement is to include the total sales (G1), GST on sales (1A) and GST on purchases (1B) as well. Other requirement like GST free sales, capital purchases and export sales have been removed from 1st July 2017.  Other than this, the classification has to be made into GST codes that include GST or no GST options.

A simpler BAS can give many benefits to the tax professionals, small businesses and software providers as this has been done to save the time required and the cost of managing the tax affairs. Moreover, record keeping costs, BAS preparation and reporting will become easier than earlier after this is bought into effect.

From the above it can be concluded that this simpler Business Activity Statements may make it easier for automated accounting systems. In order to ensure better services for small businesses and its users ATO has decided to bring this change that will come into effect and also it will be time and cost effective for the users that will benefit small businesses in the long run.

However though the use of GST and GST free codes and the implementation of this would be something to be looked upon. Although some labels have been removed but it seems the actual calculations required before a Business Activity Statement could be lodged would not change since the labels seem to have been replaced by codes

Kindly visit the below ATO link for a further understanding of the new BAS return.

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