Simpler BAS - Urgent Warning

Simpler BAS - Urgent Warning

Simpler BAS is here and we have the software companies scrambling to implement it.

 

Key Message

• It appears some software will automatically change configurations of their codes

• It appears add-ons may not be able to connect with the software due to these changes

• It is only the end reporting to the ATO that needs to change

Recommendation for now
It may be simpler to change the software settings to remain on the complicated BAS

Important Points

• It is only the lodged form that may need to change. (If you use a different lodgment mechanism then only complete the required fields)

• The ATO portal apparently will also change to fewer fields: 1A, 1B and G1

• All businesses under $10m turnover are automatically eligible on ATO systems

Warning

• It appears some software will automatically change configurations of their codes

• This will affect the application of GST law for relevant businesses

• The application of GST law and preparation of the BAS is a BAS Agent/Tax Agent service, therefore the person who is checking that the software continues to apply the GST law and BAS preparation correctly for that business must be a registered agent

• You need to check how the software has changed!

• If you use an add-on for any part of the sending or receiving of invoices then make sure it is still working.

The Ideal
Simpler BAS has been known for a while but has taken time to implement. The software should be allowing the simpler new world of just having two codes: GST and NOT. In this way we use the GST codes to calculate the amount of GST we are allowed to claim back or have to pay. However, software has to transition from the concept of the detailed reporting and all the behaviour we have learnt for 17 years.

• 1A GST collected could be calculated from the credit amounts of GST charged/collected from clients

• 1B GST paid could be calculated from the debit amounts of GST paid/incurred from all suppliers

• G1 Total reportable sales could be calculated from the chart of accounts normal reporting (the Profit and Loss)

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