MYOB Accounting

Version 10.
5 Addendum
Trademarks
MYOB is a registered trademark and use of it is prohibited without prior consent. FirstAccounts, MYOB Accounting, MYOB Accounting Plus, MYOB Premier Accounting and MYOB RetailManager are registered trademarks of MYOB Technology Pty Ltd. Microsoft, Windows and Microsoft Excel are either registered trademarks or trademarks of Mircrosoft Corporation in the United States and/or other countries. Apple, Macintosh and MacOS are registered trademarks of Apple Computer, Inc.
Copyright MYOB Technology Pty Ltd 2000. All rights reserved.
MYOB Australia Pty Ltd

ABN 13 086 760 198
Internet address: www.myob.com.au
Melbourne Phone 03 9222 9777
Sydney (Sales office) Phone 1300 555 111 Fax 02 9770 9088
General Fax 03 9222 9888 Support Fax 03 9222 9899
This Addendum is intended for use with MYOB Accounting 10.5 and MYOB Accounting Plus 10.5. Written in Australia. October 2000.
MYOB Accounting Addendum
Table of Contents
Whats new in this release? ..............................................................................................5
BASlink ......................................................................................................................................... 5 Tax Codes in the General Journal Entry window ............................................................................ 6 No ABN/TFN tax type ................................................................................................................... 6 ABN checking ............................................................................................................................... 7 Tax File Number in the Company Information window ................................................................. 8 Tax Code selection in the Bank Entry window ............................................................................... 8 RetailManager integration ............................................................................................................ 9 Importing and Exporting enhancements ..................................................................................... 10 E-mail address in the Card File .................................................................................................... 11 Default settings for the Tax Inclusive checkbox ........................................................................... 11 New fields in MYOB Accounting forms ....................................................................................... 11
Completing your activity statement with BASlink .........................................................13

Introduction to the Business Activity Statement ........................................................................... 14 Introduction to the Instalment Activity Statement........................................................................ 17 Preparing to complete your activity statement............................................................................. 20 Completing the activity statement ............................................................................................... 43 Recording your ATO payment or credit in MYOB Accounting ...................................................... 96 Lodging your activity statement electronically ............................................................................. 97 How often do you have to lodge a Business Activity Statement? .................................................. 98 How often do you have to lodge an Instalment Activity Statement?........................................... 100 Cash and Accruals accounting methods..................................................................................... 101 Recording PAYG Withholdings using the Write Cheques window............................................... 102 Transactions that include both Income and Expense.................................................................. 105 Handling the Simplified Accounting Method ............................................................................. 107 Frequently Asked Questions ....................................................................................................... 109 Getting Help.............................................................................................................................. 112
User Guide Errata ..........................................................................................................113 Index .............................................................................................................................115
Whats new in this release?

Welcome to the MYOB Accounting version 10.5 Addendum. This Addendum details all the great new features available in MYOB Accounting, including BASlink, tax codes in General Journal Entries, and enhanced importing and exporting of transactions. These features have been designed to make running your business and handling the GST even more simple. This version also includes other enhancements that improve the overall performance of MYOB Accounting. These new features are described below.
BASlink
The latest release of BASlink is an assistant designed to help you complete your Business Activity Statement or Instalment Activity Statement speedily and conveniently. Fully integrated with MYOB Accounting, BASlink automatically fills in most of the BAS/IAS fields for you all you have to do is link the fields to the correct tax codes in MYOB Accounting. Once the tax codes are linked, BASlink will maintain the links the next time you complete your statement. Periodically reporting your obligations and entitlements to the ATO has never been simpler.
Once BASlink has worked out your ATO payment or refund, it even produces a sample transaction to be entered into MYOB Accounting. You can lodge your BAS electronically using MYOB Accounting. When you complete BASlink, you can import your BASlink information directly into a special ATO program called the Electronic Commerce Interface (ECI), which will allow you to lodge it electronically with the ATO. For full instructions on completing your activity statement using BASlink, see Completing your activity statement with BASlink on page 13.
Note for Mac users: This Addendum details the features available in BASlink. Some of these features are not yet available in the Mac version of BASlink. For information on which features are available, see the Whats New in this Release help file, accessible from MYOB Accountings Help menu. For the latest information about BASlink, visit www.myob.com.au/bas. Note for Windows users: If you had set up the previous version of BASlink, which was based in Microsoft Excel, you can upgrade your setup to this new version. See If you have already set up your BAS using BASlink in Microsoft Excel... on page 46 for more information.
Tax Codes in the General Journal Entry window

You can now enter General Journal transactions with tax codes. If required, you can also make adjustments that affect the BAS by using the General Journal Entry window (we recommend that only your accountant enter BAS adjustments using this window).
When you select an account and press Tab, the default tax code specified for the account will be displayed in the Tax column. You can then specify if this transaction should affect the Supplies side or the Acquisitions side of the Business Activity Statements GST section. If you use the N-T (No Tax) code, you can ignore the Display in GST [BAS] reports as: radio buttons, since the N-T tax code is used in transactions that are not included in the BAS. If you clear the Tax column, the radio buttons will become inactive. For more information on entering General Journal Entries, see the General Ledger chapter of the MYOB Accounting User Guide.
No ABN/TFN tax type

To help you handle purchases from a supplier that does not have, or has not quoted an ABN, a new tax type has been introduced. You can now define tax codes with the
type No ABN/TFN. This will indicate that the tax code is a PAYG Withholding tax type and will always be rounded down to the nearest dollar. You should use a No ABN/TFN tax code of 48.5% where suppliers have not quoted an ABN on their invoice (over $50 tax exclusive), or where amounts are withheld from investment income because no tax file number was quoted. If both these situations apply to your company, you will need to create two tax codes to handle the situations separately.
How to set up a No ABN/TFN tax code

1 2 3 4 5 Go to the Setup menu and select Tax Code List. Click New, or if you have already set up a code to handle transactions where no ABN or TFN was quoted, click its zoom arrow. Name the tax code (for example NOA) and type a description, for example No ABN quoted on invoice. Select an account to track Withholdings Credits. This will usually be an Asset type account. Select an account to track Withholdings Payable. This will usually be a Liability type account.
For more information on setting up tax codes, see the GST chapter of the MYOB Accounting User Guide.
ABN checking
The ATO requires you to withhold 48.5% of the purchase amount where the supplier has not provided an ABN on an invoice (over $50 tax exclusive). With this release of MYOB Accounting, you will be warned if a vendor you are entering a purchase for does not have an ABN. By clicking Yes to the warning dialog box, you will be able to change the tax codes you have selected to a No ABN/TFN type tax code. You will not
see the warning if you have selected a No ABN/TFN type tax code for each line on the purchase. If you dont want to be warned, you can clear the Warn if Vendor Does Not Have an ABN for Purchases Greater Than $50 Tax Exclusive preference in the Purchases Preference window (go to the Setup menu and select Preferences). For more information, see No ABN/TFN tax type on page 6.
Tax File Number in the Company Information window

If you will be completing an Instalment Activity Statement but do not have an ABN, for example you are lodging the activity statement as a partner or a beneficiary of a trust, you need to provide your Tax File Number instead. You can now enter your Tax File Number in the A.B.N. or T.F.N. field in the Company Information window. As this field can handle either a ABN or a Tax File Number, the number you enter must be between 8 and 11 digits. BASlink will use this number when preparing your Instalment Activity Statement. For more information on setting up your Company Information, see the Maintenance & Troubleshooting chapter in your MYOB Accounting User Guide.
Tax Code selection in the Bank Entry window

To reflect Bank Entry transactions in BASlink, you can now select a tax code for the transactions entered. The Bank Entry window (located in the Reconcile Accounts window) enables you to add interest or fees to an account while you are completing a bank reconciliation for that account. As all supplies and acquisitions need to be shown on the Business Activity Statement, you would need to select the correct tax codes for each type of transaction you enter using this window. For more information on using the Bank Entry window, see the Chequebook chapter of the MYOB Accounting User Guide.
Enter the tax code that is applicable to the Bank Entry.
RetailManager integration
You can now import RetailManager sales, purchases, and vendors easily to both Windows and Mac versions of MYOB Accounting.
RetailManager 4.3 required

This feature will only work if you have installed RetailManager 4.3 or higher. If you have not yet received or upgraded to this version of RetailManager, you will need to import your transactions using the File > Import Data > Transaction Journals option. You may prefer to wait until you receive RetailManager 4.3 before installing this new version of MYOB Accounting.
Tax Codes
Ensure that you use the same tax codes and rates both in MYOB Accounting and RetailManager.
How to import RetailManager transactions

1 Select the I use RetailManager preference in MYOB Accountings System Preferences window (Go to the Setup menu and select Preferences). Close MYOB Accounting.
Select the I Use RetailManager preference to automatically import transactions from RetailManager when you start MYOB Accounting.
Export the retail.txt file from RetailManager. Windows users: In RetailManager, go to the Tools menu and select Options. Click the Accounting tab and ensure the MYOB Accounting folder has been selected in the Export Directory field. Next, go to the File menu and select Accounting Export. Mac users: In RetailManager, go to the File menu and select Accounting Export. A Retail.txt file will be exported. (If you are not sure which folder the Retail.txt file has been saved to, go to the Tools menu, select Options and then click the Accounting tab. The Export Directory is where you will find the Retail.txt file.) Copy the Retail.txt file to your computers MYOB Accounting folder. Start up MYOB Accounting again and open your data file. MYOB Accounting will check for the Retail.txt file in the MYOB Accounting folder on your hard drive. If
there are transactions that need to be imported, it will be done for you automatically. For more information on exporting to MYOB Accounting, see the RetailManager User Guide Addendum.
Importing and Exporting enhancements

With this release of MYOB Accounting, importing and exporting transactions has become more flexible. You now have a number of new options that you can choose when exporting or importing using MYOB Accounting.
Import and export Write Cheques and Make a Deposit transactions. You can import transactions that do not have tax code information by selecting Transaction Journals. Also import your Tax Code List and RetailManager transactions.
General Journal Entries: This option should now be used to import and export General Journal Entries. Write Cheques and Make a Deposit transactions: Import and export Write Cheques and Make a Deposit transactions. Previously these entries could only be imported or exported as General Journal Entries. Tax Code List: Import or export your tax codes. This is helpful if you are creating a data file that requires the same Tax Code List as another file. Before importing Consolidated tax codes, ensure that the non-consolidated codes are set up or imported in the data file. Note that you cannot import codes with the tax type of No ABN/TFN to a previous version of MYOB Accounting. Transaction Journals: You can import transactions without tax information using this option. Previously this option was called General Journal Entries. The Transaction Journals option would be used when consolidating figures from more than one data file to print basic reports, like a Balance Sheet. Transactions entered using this option will not be included in BASlink. RetailManager: See RetailManager integration on page 9 for information on importing from MYOB RetailManager.
10
For more information, see the Importing and Exporting chapter of your MYOB Accounting User Guide.
E-mail address in the Card File

You can now enter an e-mail address for each card in the Card File. The e-mail address can also be displayed in the Card File (Detail) report. In future versions of MYOB Accounting, the functionality of this feature will be expanded. At this stage, it will only store the e-mail address.
Default settings for the Tax Inclusive checkbox

The Tax Inclusive checkbox is used in MYOB Accounting to specify whether the amounts you enter are tax inclusive or exclusive. MYOB Accounting now saves the status of the checkbox used in each type of transaction. For example, if the last sale you entered in MYOB Accounting was tax inclusive, the next time you start the data file and create a sale, the Tax Inclusive checkbox will be selected for you. The default setting is saved for the User ID selected when opening the data file.
New fields in MYOB Accounting forms

A number of new fields are available in the MYOB Accounting forms. For example, you can now show the subtotal of the Line Tax column on your invoices, or show the customer or supplier e-mail address on the invoice. To activate these new fields, customise your form, double-click the field you want, and choose to make the field Active. For information on customising your forms, see the Reports & Forms chapter in your MYOB Accounting User Guide.
11
12
Completing your activity statement with BASlink

Doing business under the GST system involves reporting your GST obligations and entitlements to the ATO on a regular basis. This is done through the Business Activity Statement (BAS) where you report how much GST you have collected and paid, how much you have paid in wages and salaries, how much tax you have deducted from staff and contractors, and how much income tax and FBT you need to pay. Even if you are not registered for the GST, you will still need to regularly report your PAYG taxes and FBT through the Instalment Activity Statement (IAS). Unaided, filling out these forms can be a daunting task. However, with BASlink, you will find that it is really simple to complete your activity statement. BASlink is fully integrated with MYOB Accounting, and has been designed to fill in most of the BAS or IAS fields for you automatically. When you have completed your BAS form, you can lodge it electronically by exporting it from BASlink to the ATOs Electronic Commerce Interface (ECI).
Important Note
We recommend that you refer to the ATOs publication, Business Activity Statement Instructions or Instalment Activity Statement Instructions when following these BASlink instructions. As with any tax return, it is important that you review the figures produced by your accounting software, and confirm (with your accountant if necessary) that the correct information is being lodged with the ATO.
13
Introduction to the Business Activity Statement

The BAS contains over 50 fields, about half of which are related to GST. Smaller businesses will be allowed to lodge the form electronically or by post either monthly or quarterly, while larger businesses with a turnover of more than $20 million will need to lodge it electronically every month, unless a variation by the Tax Commissioner is granted. Page one of the form is a summary page containing fields for your total GST payable and for your total GST credits. The contents of some of these fields come from the Calculation Sheet on page 2 of the form. We will have a close look at the fields on the Calculation Sheet of the BAS form as these directly relate to how we use and set up MYOB Accounting to handle GST. Although the form looks very complicated, only some of these fields require accounting information; the rest are calculation fields. In reality, many businesses would only need to provide accounting information for two or three fields. Fields G1 to G9 concern GST collections, while G10 to G20 concern GST paid to suppliers. Its important to realise that, in addition to reporting your GST liability on the Business Activity Statement, you also must report your PAYG Withholding, PAYG Instalments and your FBT Instalments on the BAS. You should also realise that you might not be reporting on all your tax liabilities with the same frequency. For example, you may be reporting your GST liability on a monthly basis, but your PAYG Withholdings on a quarterly basis.
14
The Business Activity Statement

Summary Sheet
BASlink completes most fields on the Summary Sheet of the BAS from totals you have calculated on the Calculation Sheet.
15
Calculation Sheet
The reporting period is indicated at the top of each section of the BAS they can be different for each section.
GST Collected
Report on the GST you have collected in these fields.
GST Paid
Report on the GST you have paid in these fields.
PAYG Withholdings
Report on your PAYG Withholdings in the W fields.
PAYG Instalments
Report on the PAYG Instalments in the T fields.
FBT Instalments
Report on FBT in the F fields.
16
Introduction to the Instalment Activity Statement

If your business is not registered for GST, or you are a non-business employer, or you are an individual taxpayer with investment income, you still need to settle your Pay As You Go (PAYG) taxes and FBT in the same way as those who are registered for GST. The ATO have created the Instalment Activity Statement (IAS) to help you report your PAYG taxes and FBT. The IAS is similar to the BAS it contains fields relating to PAYG, Deferred Company/Fund instalments and FBT but does not have the GST, Luxury Car Tax and Wine Equalisation Tax fields. The Calculation Sheet (back page) of the IAS is where you work out how much PAYG taxes and FBT you have to pay. You have different options for determining your PAYG instalments depending on your reporting period. The front page of the IAS form is the Summary Sheet with fields for your total PAYG taxes and FBT. BASlink will automatically complete these fields based on the information you entered in the Calculation Sheet. When reporting your tax liabilities to the ATO, remember that you might not be reporting on all your liabilities with the same frequency. For example, you may be reporting your PAYG Withholdings on a quarterly basis but your PAYG Instalments on an annual basis.
17
Introduction to the Instalment Activity Statement
The Instalment Activity Statement

Summary Sheet
BASlink completes most fields on the Summary Sheet of the IAS from totals you have calculated on the Calculation Sheet.
18
Calculation Sheet
The reporting period is indicated at the top of each section of the IAS they can be different for each section.
PAYG Instalments
Choose the required option and report on the PAYG Instalments in the T fields.
PAYG Withholdings
Report on your PAYG Withholdings in the W fields.
FBT Instalments
Report on FBT in the F fields.
19
Preparing to complete your activity statement

There are a few tasks and checks you should make in preparation to lodge your activity statement. These are detailed below.
Step 1
Action
Review your tax codes. As BASlink will be relying on your tax codes in your MYOB Accounting data file to complete the BAS or IAS fields, you must make sure you are using the correct tax code for the correct transaction. Also ensure that your accounts default tax code are correct. See page 21 for more information.
2 3 4
Complete your End of Tax Period activities. See page 34 for more information.
Set up your BAS or IAS information. See page 38 for more information.
Prepare to lodge your activity statement. See page 41 for more information.
20
Step 1 Review your tax codes

Tax codes are used in MYOB Accounting to track GST in your business. You can assign a tax code to every sale, purchase, cheque and deposit you create. When you use BASlink, you will be linking your tax codes to various fields on your activity statement. BASlink will then fill in these fields (and calculate your ATO liability or credit) based on the tax codes linked to each field. It is therefore important to review your existing tax codes and make sure you are using the correct tax codes for the correct type of transactions. You may need to consult your accountant over this.
View your tax codes

Go to the Setup menu and choose Tax Code List. The Tax Code List window is displayed. The following illustration shows the details of the Tax Code List in MYOB Accounting.
What tax codes do you need?

The following table lists and describes recommended tax codes. Tax codes indicated with an asterisk (*) are recommended as compulsory for most businesses. You probably already have the tax codes in the first table. The second group of tax codes in this table are additional tax codes you may also find useful to track your GST liability.
21
Its easy to delete any tax codes you dont need as long as you havent recorded any transactions using them. Simply highlight the tax code in the Tax Code List window, open the Edit menu and choose Delete Tax Code.
If you have upgraded from MYOB FirstAccounts 3.5

The Tax Code list in MYOB FirstAccounts 3.5 only allowed ten tax rates, and the tax codes were one alphanumeric character in length. In MYOB Accounting, you can have an unlimited number of tax rates, and tax codes can be up to three alphanumeric characters in length. After upgrading your data file to MYOB Accounting, review every tax code that you had set up in FirstAccounts, by choosing Tax Code List from the Setup menu. Ensure the correct Tax Type and linked accounts are selected for each tax code. Note that if you create any new tax codes, these tax codes will need to be set up to the appropriate fields in BASlink. For more information on setting up tax codes in MYOB Accounting, see the GST chapter of your MYOB Accounting User Guide.
Suggested tax codes in MYOB Accounting

Tax Code Description
This is the GST-free tax code. It is set to zero percent and used to record your GST-free purchases and sales. FRE: Goods & Services Tax (Tax Type): 0% This is the GST Not Registered code. It is to record purchases from Vendors who are not registered to collect GST, but have an ABN. This is an Input Taxed tax code which does not require any linked accounts. GNR: Input Taxed: 0% This is the Goods and Services Tax code. It is used to record your sales, purchases, cheques and deposits on which you have either collected or paid GST. GST: Goods & Services Tax:10% The GW code is a consolidated code which combines both the GST on Wine Equalisation Tax (WEG) and Wine Equalisation Tax (WET) codes. GW: Consolidated: WEG & WET This tax code can only be used on purchase orders. It is used to apportion indirect costs such as duty and handling costs over the value of the purchase order and allocate the indirect costs to a liability account. IMP: Import Duty: 5%
FRE*
GNR
GST*
GW
IMP
22
Tax Code
Description
This is the Input Taxed code. It can only be used in Write Cheques and Purchases, and is designed to help you record expenses that relate to making Input Taxed sales. INP: Input Taxed - Purchases: 10% This is the Luxury Car Tax code. Car dealers would use this tax code to handle the special tax considerations which accompany the sale of luxury cars. LCT: Luxury Car Tax: 25% This is the No-Tax code and is used to record transactions outside the GST net, such as cash transfers, depreciation and recording stock movements. It is useful for auditing purposes to make sure all your transactions are allocated a tax code and you can use this code when no other will do. N-T: Goods & Services Tax: 0% This is the Voluntary Withholding code and is used to record payments where the payee wants some of the payment deducted for taxation purposes. For example, contractors may request tax to be set aside from their payments and have the tax sent to the ATO. VWH: Voluntary Withholdings: 20% This is the Wine Equalisation GST code and is the GST component of a wine sale that includes both GST and WET. WEG: Goods & Services Tax: 12.9% This is the Wine Equalisation Tax code. WET: Sales Tax: 29% This is the Wholesale Sales Tax code and is no longer needed. WST: Sales Tax: 22%
INP*
LCT
N-T*
VWH
WEG
WET
WST
Additional tax codes you may find useful

Tax Code Description
This is the Export Code. Like the Free code, it is a GST code set to zero percent. Use this code to record export sales. Remember, this code differs from the default Import code (IMP) which is used to record import duties on purchases. EXP: Goods & Services Tax: 0%
EXP*
23
Tax Code
Description
This is a GST code, and is used to record GST on Capital Acquisitions of $300 or more. It is similar to the GST code, but where the GST code is used to record most business expenses, this code is only used to record the purchase of capital items. An easy rule of thumb is to remember that if the item purchased is to be depreciated, then use GCA; if it is not to be depreciated, use GST. We suggest you use the code GST when you sell capital items. You can use the GCA code when you sell capital items, so long as you remember to add the GCA code totals to your GST sales on the BAS form. GCA: Goods & Services Tax: 10% This code is used to record Input Taxed Sales and is a GST code set to zero percent. For example, you would use this code if you were a landlord collecting residential rents. This code differs from the existing MYOB default Input Taxed (INP) code which is used to record Input Taxed purchases such as a landlord paying plumbing expenses on residential rental premises. ITS: Goods & Services Tax: 0% Can also be known as GN2. This code is used to record purchases from Vendors who do not have an ABN and are not registered to collect GST. It will automatically deduct 48.5% of the purchase order value and allocate it to a payable account. Use this to record purchases from people/businesses who do not have an ABN. Note that exemptions do apply to second hand goods and to hobbyists. NOA: No ABN/TFN: 48.5% This is the code to be used by companies in particular for non-income tax deductible expenses. Whenever an expense is not deductible for income tax purposes, the company is not permitted to claim back the Input Tax Credit for GST. This is not for expenses that are strictly directors drawings that are coded direct to the loan account. Such entries should be coded to N-T. NTD: Input Taxed at 0% or Goods & Services Tax at 10%
GCA*
ITS*
NOA*
NTD
24
Tax Code
Description
You might rename this account Owners Drawings if you were a sole proprietor or partnership. Link it to an account like drawings, or a special account called GST Private Use. Accounting convention expects Drawings accounts to be set up as Equity accounts and closed off to retained earnings at the end of the year. Many MYOB accounting software users prefer to create Drawings accounts as Other Expenses and then close them to retained earning when you start a new year. We can use this tax code to adjust our private usage portion of business expenses. This can be done as the expense is originally entered, or as an adjustment at the time of working out our GST liabilities. You should consult your accountant if you are unsure as to how much business expense should be apportioned to Private Use. You may need to use a second tax code for Private Use of Capital Assets. PRI: Good & Services Tax: 10% QUE stands for GST Query. From time to time you might be uncertain as to what tax type should be applied to a transaction. You can use this tax code to group together all your queries. Simply create a report filtered to this code and seek advice from your accountant about allocating these transactions to the proper tax codes. QUE: Goods & Services Tax: 10% Contracts Spanning the WST and GST periods. CON: Goods & Services Tax: 10% Cellar Door Sales. This code may be used to handle sales tax on cellar door wine sales. CDS: Sales Tax: 18.9768% Cellar Door GST. This code may be used to handle GST on cellar door wine sales. CDG: Goods & Services Tax: 11.8977% Luxury Car Tax Consolidated. This code may be used to consolidate both LCT and GST tax codes. LDG: Consolidated: LCT 25% and GST 10% Second Hand Goods. The rules applying to second hand goods are complicated and therefore isolating second hand goods from normal GST sales and purchases can be helpful. SHG: Goods & Services Tax: 10%
PRI*
QUE
CON
CDS
CDG
LCG
SHG
If youre unsure which tax code to use...

Situations are bound to occur in which you are unsure which tax code to use for a transaction. For these cases, we recommend that you set up an additional tax code
25
called QUE GST Query code. You can use this tax code for any problematic transactions, and return to them later. The advantage to this is that all your problems are tucked away in the one place and you can keep working in the knowledge you will be able to easily find the troublesome entries at a later time. The disadvantage is that you may find yourself either over or undercharging a client who want the goods now. You can at any time run a report on individual tax codes so you can easily keep track of how the QUE code is being used. To do this, open the Reports menu and choose Index to Reports, click on the GST/Sales Tax tab, and then select the GST (DetailAccrual) report. Specify the QUE code in the Report Filters window, along with the other filters, and run the report.
Notice in the displayed report that your cursor changes to a magnifying glass as you move over the transactions. You can click the mouse as you pass over the transactions to zoom back to the original transaction. You can now change the tax code in that transaction.
26
Sample accounts and tax codes

Shown below is a sample chart of accounts along with default tax codes. Have a close look at this list and compare it with your own chart of accounts. Enter any additional tax codes you may need, or notes, in the shaded areas of the table.
Account Name
Tax Code
Comment
Assets 1-0000s
Only depreciable items like Furniture and Fittings will require a tax code, whereas most asset accounts should be set to N-T.
General Cheque Account Petty Cash Electronic Payments Clearing Trade Debtors
N-T
N-T
N-T
N-T Accounts like Furniture and Fittings are usually used to record depreciable items costing $300 or more. As the GCA code is also used for this type of purchase, it should be the default code.
F & F - at cost
GCA
F & F - Acc. Depn. M. V. - at cost M. V. - Acc. Depn. Office Equip at Cost Office Equip Accum Dep P & E - at cost P & E - Acc. Depn Store Equip at Cost
N-T GCA N-T GCA N-T
GCA N-T GCA
27
Account Name
Tax Code
N-T
Comment
Store Equip Accum Dep Withholdings Credits Deposits with Vendors Inventory Liabilities 2-0000s American Express Visa Card Trade Creditors Deposits Received Superannuation Payable Workers Compensation Payable Sales Tax Payable PPS Payable Import Duty Payable GST Collected on Sales GST Paid on purchases
N-T
N-T
Most asset accounts should be set to N-T as they do not involve GST.
N-T Most liability accounts should be set to N-T as they do not involve GST or relate to the BAS form. N-T N-T N-T N-T
N-T
N-T
N-T N-T N-T
N-T
N-T
28
Account Name
Tax Code
Comment
Credit for Wholesale Sales Tax
N-T
This account is designed to record the one- off special wholesale sales tax credit available to retailers as they convert to GST.
Luxury Car Tax Payable PAYE Payable Withholdings Payable
N-T
N-T
N-T
Loan Director
N-T or PRI
The PRI code should be linked to either drawings or loans. Its treatment will depend on whether you record capital taken out of the business as a loan or a drawing.
Union Fees Payable Equity 3-0000s Current Earnings Historical Balancing Account Issued Capital Owners/ Shareholders Equity Owners/ Shareholders Capital Owners/ Shareholders Drawings Retained Earnings Income/Sales 4-0000s
N-T Most Equity accounts should be set to N-T as they do not involve GST or relate to the BAS form. N-T
N-T
N-T
N-T
N-T
PRI
Any transactions of a private nature cannot be claimed for GST purposes, so use the PRI code.
N-T Most income accounts should be linked to either the EXP, FRE, GST or ITS code.
29
Account Name
Tax Code
GST
Comment
Freight Income Investment Property - Commercial Rental Income Investment Property - Residential Rental Income Late Fees Collected Long Term Accommodation Miscellaneous Income
GST
Commercial rents are subject to GST.
ITS
Residential rental income is an input taxed supply, so use the ITS code.
ITS There are special rules relating to Long Term Accommodation.
LTA or ITS
GST
Sales
GST, EXP, FRE
Some businesses may have some products that are only exported. These businesses should use the EXP code. If they export something that is normally linked to a GST code, then they should override the GST default and use the EXP code. Some businesses may have accounts which record only GST-free sales. For example fresh fruit stores and medical practices. This type of business should use the FRE code as the default code.
School Tuck Shop Sales
ITS
Second Hand Goods (>$300)
SHG
There are special rules relating to the sale of second hand goods if the sale value is greater than $300. Use of the SHG code allows you to easily isolate these sales from your other sales.
Second Hand Goods (<$300)
GST
Service Income
GST, FRE, EXP
Cost of Sales 5-0000s Building materials GST
Most Cost of Sales accounts should be linked to GST.
30
Account Name
Tax Code
GST/FRE GST GST
Comment
COS Council Permits Discounts Given
Inventory Adjustment
N-T
Internal adjustments such as Inventory revaluations, depreciations and amortisation do not involve GST and should be linked to the N-T code.
Purchase Returns & Allowance Purchases
GST
GST Your own arrangements with your sub-contractors will dictate the default tax code. Some subcontractors invoices will be subject to GST and some may have an ABN, but not collect GST. While others may have entered into Voluntary Withholding agreements.
Sub-contractors
GST, GNR or VWH
Expenses 6-0000s Accounting Fees Advertising Amortisation Bad Debts/ Collection Expense Bank Charges GST GST N-T
GST
FRE Depreciation does not involve GST. Use the N-T code. The same code as Sales.
Depreciation
N-T
Discounts Taken Dues and Subscriptions
GST
GST
31
Account Name
Tax Code
GST
Comment
Electricity
Fines/penalties
NTD
GST paid on fines cannot be counted towards an input credit.
Freight Freight Paid GST Contract Adjustments Insurance
GST GST
GST
GST Expenses related to making an input taxed supply should use the INP code. For example, plumbing fees related to the upkeep of a residential rental property.
Investment Residential Rental Expenses
INP
Late Fees Paid Lease Payments Legal Fees Motor Vehicle Office Rental Office Supplies Operating Expenses Other Employer Expenses Other Office Costs Penalties Petrol/Diesel
NTD GST GST GST GST GST GST
GST
GST NTD GST
32
Account Name
Tax Code
Comment
Postage & Stationery Printing
GST
GST Wage and Salaries, along with Superannuation, are free of GST and are not recorded within the GST section of the BAS. Use the N-T code.
Salaries/Wages
N-T
Staff Refreshments Sub-Contractors Superannuation Telephone Workers Compensation Other Income 8-0000s Other Income Other Expenses 9-0000s Fringe Benefits Tax
GST GST N-T GST
GST
Most income accounts should be linked to either the EXP, FRE, GST or ITS code. GST
N-T Any transactions of a private nature cannot be claimed for GST purposes, so use the PRI code.
GST Private Use
PRI
Other Expenses Interest Paid
GST FRE
33
Step 2 Complete end of tax period activities

Before GST, many businesses would only run the End of Period activities at the end of the year. Now, every month or every quarter, depending on your reporting periods, there are certain tasks and checks you should make in preparation to lodge your activity statement. These tasks and checks include reconciling your bank account, reviewing outstanding receivables and payables, making sure your system balances, and locking periods.
End of Period checklist

Step 1
Reconcile your accounts.
Action
- Reconcile your bank account.
- Reconcile your accounts receivable.
- Reconcile your accounts payable.
Review your accounts and reports. Review the Chart of Accounts, Balance Sheet, Profit and Loss Statement and Tax Code Exceptions reports to spot potential issues or concerns. Look for figures that seem out of the ordinary or unexpected. Set up your activity statement information and prepare your activity statement.
Lock Periods.
34
1. Reconcile your accounts

Reconcile your bank account
If you make cheque and deposit transactions, reconcile your chequebook and credit card type transactions for the period. Use your credit card statement to reconcile credit card accounts and your bank statement to reconcile your bank accounts to the end of your GST reporting period. Print and keep the Reconciliation report each time you perform a reconciliation (keep a copy in your Accountant file). See the Reconcile Accounts topic in the Chequebook chapter of the MYOB Accounting User Guide for full instructions on how to reconcile your cheque and credit card accounts.
Reconcile your accounts receivable

If you use the Sales command centre, make sure you have entered all sales for the GST reporting period. Then make sure the balance of your outstanding customers equals the balance of the linked Receivables account. You can use the Receivables Reconciliation Summary or Detail report to quickly check that your receivables balance. 1 2 Go to the Reports menu and choose Index to Reports. Click on the Sales tab and select either the Receivables Reconciliation Summary or Detail report. Select the Filters button, set the Receivables to report up to the ending date of your GST reporting period and display the report. The Total balance of your customers should equal the balance of the Receivables account as shown below.
Make sure the Total agrees with the Receivables Account. The Out of Balance Amount should be zero.
If the balances do not agree, see the MYOB website at: www.myob.com.au and look under the support pages for the latest information.
35
Reconcile your accounts payable

If you use the Purchases command centre, make sure the balance of your outstanding vendors equals the balance of the linked Payables account. You can use the Payables Reconciliation Summary or Detail report to quickly check that your payables balance. 1 2 Go to the Reports menu and choose Index to Reports. Click on the Purchases tab and select either the Payables Reconciliation Summary or Detail report. Select the Filters button, set the Payables to report up to the ending date of your GST reporting period and display the report. The Total balance of your suppliers should equal the balance of the Payables account below.
Make sure the Total agrees with the Payables Account. The Out of Balance Amount should be zero.
If the balances do not agree, see the MYOB website at: www.myob.com.au and look under the support pages for the latest information.
2. Review your accounts and reports

You should print a Balance Sheet and Profit & Loss report, or a Trial Balance and look for any obvious errors. For example, a figure of $15,000 for motor vehicle expenses may seem too high. Use the Find Transaction functions and have a close look at the transactions that make up the amount. The problem may have been caused by an account allocation error, or something more serious. You should also view the Tax Code Exceptions reports that list all transactions for which you have not allocated a tax code. Look closely at these transactions by zooming in on the displayed report with the magnifying glass tool or using the Find Transaction function and check that you have not inadvertently left out the tax code. If you have, speak to your accountant before you change any transactions.
36
Make sure you allocate the proper tax code to those transactions you allocated the QUE (query) tax code. Seek advice from your accountant if required. For more information on locating these transactions, see page 25.
3. Prepare your activity statement

The following sections show you how to set up your activity statement information and complete the activity statement.
4. Lock Periods
You should take all precautions possible to ensure transactions that may affect your GST liability are not recorded within the period just completed. For example, if you have just completed your activity statement for October, November and December, do not record any transactions that would affect your GST liability in these months. If you need to make an adjustment, do so within the current period. You can use the Lock Periods function to stop transactions being made within a settled GST period. To do this, go to the Setup menu and choose Preferences. Click on the Security tab and change the Lock Periods month to the month just completed.
Use the Lock Periods preference to stop transactions being recorded in a settled GST period.
See Setting Security Preferences in the Maintenance & Troubleshooting chapter of the MYOB Accounting User Guide for full instructions on how to lock periods.
37
Step 3 Set up BAS/IAS Information

Before you prepare your activity statement, you will need to enter some basic information in the BAS Information window such as the type of activity statement you will be lodging, your reporting frequency, your accounting basis and so on. You will only need to set up this information the first time you use BASlink. These settings will be retained when you next complete your activity statement. Follow the appropriate set of instructions below to set up information for BAS or IAS.
Set up BAS Information

1 2 Go to the Setup menu and choose Company Information. The Company Information window is displayed. Click on the BAS Info button. The BAS Information window is displayed.
3 4 5
Choose Business Activity Statement from the Statement Type drop-down list. Select how you will be lodging the Business Activity Statement, either by post or internet using the Lodgement Method drop-down menu. Select the method for completing the GST section of the BAS. The ATO has two methodsCalculation Sheet, and Derived from Accounts. - Calculation Sheet requires all GST fields to be completed and calculates the tax paid and collected by dividing fields G8 and G19 by eleven. Note that if you have manually adjusted your tax amounts when recording transactions, the Calculation Sheet method will not correctly calculate the tax collected and paid.
38
- Derived from Accounts requires only certain GST fields to be reported, and the tax paid and collected is derived from MYOB Accounting. You should use this method if you have manually adjusted the tax amount in the Tax Information window when recording a transaction. 6 Select whether you will be using the Simplified Accounting Method. If you select this method, enter the percentage of your sales and purchases that are GST-free. Your GST collected and paid will be calculated using these percentages. This method is only appropriate for certain types of businesses. For more information on this method, and how to handle the Simplified Accounting Method in MYOB Accounting, see Handling the Simplified Accounting Method on page 107. Choose whether you will be reporting your GST on a cash or accruals accounting basis. For more information on how to determine your accounting basis, see Cash and Accruals accounting methods on page 101. Choose whether you will be reporting your GST liabilities quarterly or monthly. For more information on how to determine your reporting frequency, see How often do I have to report GST? on page 98. Choose whether you will be reporting your PAYG Instalments on the cash or accruals accounting basis.
10 Select a reporting frequency for your PAYG Withholdings. Choose: Never if you dont have any voluntary withholdings to report (for example, if you dont have a voluntary withholding agreement with employees and have not withheld any amounts from suppliers or investors). Monthly if you are a medium withholder (annual withholding obligations of more than $25,000 but not more than $1 million). Quarterly if you are a small withholder (annual withholding obligations of $25,000 or less). 11 Click OK when you are done. Your settings are saved, and you will not have to reenter this information when you next complete your activity statement. If you need to make any changes to your settings at a later date, you can do so from the BAS Information window.
Set up IAS information

1 2 Go to the Setup menu and choose Company Information. The Company Information window is displayed. Click on the BAS Info button. The BAS Information window is displayed.
39
Choose Instalment Activity Statement from the Statement Type drop-down list.
4 5
Choose whether you will be reporting your PAYG Instalments on the cash or accruals accounting basis. Specify how often you will be lodging your PAYG Instalments Quarterly or Yearly. For more information on how to determine your reporting frequency, see How often do I have to report PAYG Instalments? on page 100. Select a reporting frequency for your PAYG Withholdings. Choose: Never if you dont have any voluntary withholdings to report (for example, if you dont have a voluntary withholding agreement with employees and have not withheld any amounts from suppliers or investors). Monthly if you are a medium withholder (annual withholding obligations of more than $25,000 but not more than $1 million). Quarterly if you are a small withholder (annual withholding obligations of $25,000 or less).
Click OK when you are done. Your settings are saved, and you will not have to reenter this information when you next complete your activity statement.
If you need to make any changes to your settings at a later date, you can do so from the BAS Information window.
40
Step 4 - Prepare to lodge your activity statement

If you are lodging the Business Activity Statement, you have the option to lodge it electronically or by mail. If you are lodging the Instalment Activity Statement, you can only lodge it by mail.
If you are lodging electronically...

If you plan to lodge your BAS electronically, you will first need to set up ATOs Electronic Commerce Interface (ECI) software on your computer. You should then import your Electronic Certificate from the ATO into the ECI application. The Electronic Certificate identifies you to the ATO and authorises you to lodge your BAS electronically. You can import the Electronic Certificate via the internet by using the Get New Documents command in ECI. For more information, refer to your ECI documentation. Your Electronic Certificate will display ATO-calculated values in certain fields such as your PAYG Instalment rate and FBT instalment amount. Print out the Electronic Certificate or note down these displayed values, as you will be required to enter them in BASlink. The fields for which you need to note down the values are: A1 - Document Identification Number. 7 - Deferred company/fund instalment (this field should display a value if you have already lodged your 1999-2000 income tax return). 7A - GST deferred on imported goods T2 - Commissioners/varied instalment rate. F1 - ATO-calculated fringe benefits tax instalment. When you complete the BAS in BASlink, you must enter these values in the appropriate fields.
If you are lodging by mail...

If you are lodging your activity statement by mail, you should have received the BAS or IAS form from the ATO. Some of the fields on the form for example, T2 will contain certain pre-printed values calculated by the ATO. You will need to copy these values from the form to the appropriate fields in BASlink. Make sure you have your BAS or IAS form in front of you when you complete your activity statement in BASlink. The following fields should have pre-printed values: 7 - Deferred company/fund instalment (this field should display a value if you have already lodged your 1999-2000 income tax return).
41
T2 - Commissioners/varied instalment rate. T5 - Commissioners instalment amount (if you are lodging PAYG instalments annually). T7 - Commissioners/varied GDP amount (if you are reporting PAYG instalments quarterly using GDP-adjusted notional tax). F1 - ATO-calculated fringe benefits tax instalment
42
Completing the activity statement

There are six main steps to completing your activity statement using BASlink.
Step 1 2
Description
Start BASlink. See page 44 for more information.
Complete the Calculation Sheet (the back page of the activity statement) by linking your tax codes to the required fields in the activity statement. Once you have linked the tax codes to each field, BASlink does the rest, updating each field with the correct totals. Note that you only need to link your tax codes the first time you complete your activity statement. Your field setup will be saved. Complete the Summary Sheet (front page of the activity statement). Many of these fields are automatically calculated by BASlink based on the information recorded on the back page of the activity statement. Finalise your activity statement. This involves checking your statement for errors, creating an export file (if you are lodging electronically) and printing your activity statement, Audit report and sample transaction.
5 6
Lodge your BAS electronically via the ATOs Electronic Commerce Interface (ECI).
Record the ATO transaction in MYOB Accounting using the sample transaction created by BASlink as a guide.
43
Starting BASlink
The following steps outline how to start BASlink. 1 Go to the General Ledger command centre and click on the BASlink function. The BASlink Reporting Period window is displayed.
2 3
Select the last month of your reporting period from the table. If you have set up your data file with 13 periods, and want to include 13th period transactions in your activity statement, select the Include 13th Period Transactions checkbox. If you need to edit your activity statement setup information, click on the BAS Info button and make the required changes. Click on the Prepare Statement button. BASlink will take a few moments to prepare activity data. If this is the first time you are using BASlink, or you have set up new tax codes since you last completed your activity statement, a message will be displayed, reminding you that you need to link these codes to the relevant BAS/IAS fields. Click OK. BASlink will start and the Welcome window will be displayed. If you are using BASlink for the first time, click on the Setup button. A Help window will appear, detailing the steps you need to take to set up and complete your activity statement. Read this information and close the window. If you have used BASlink before and have already linked your tax codes to the relevant fields, click the Complete button. A Help window will be displayed, detailing the steps you need to take to complete your activity statement. It is a good idea to review your last setup and check for changes to pre-filled values before you finalise your activity statement (see page 91).
4 5
44
The back page (Calculation Sheet) of the activity statement will be displayed. The illustration below shows the Calculation Sheet of a quarterly Business Activity Statement.
1. Help
Click on this button for an overview of the Calculation Sheet.
2. BAS/IAS field help

Click on the field name for descriptions and ATO definitions
3. Link tax codes to fields

Click on the Setup button beside each field to link tax codes to the field.
4. Check
When you have completed the front and back pages of the BAS or IAS, click this button to check your activity statement for errors.
5. Print
Click on the Print button to print out the completed activity statement.
6. Export
Click Export to export your BAS to the ATO via the ECI. Note that this button is not available if you have selected the Instalment Activity Statement.
7. Transaction
Click on the Transaction button to print out a sample transaction to the ATO. You can use this cheque/deposit as a guide to enter into your data file.
45
Before you continue...

Note the following when completing the activity statement using BASlink: If certain fields on the activity statement are inactive (greyed out), it means that you are not required to complete these fields. Your settings in the BAS Information window determine which sections of the activity statement will be active or inactive. For example, if you have indicated that you report your PAYG withholdings monthly and your GST quarterly, your GST fields will be inactive on those months you report only your PAYG withholdings. If you cannot edit the values that appear in certain fields (fields that appear in white), it means that BASlink has automatically calculated these values based on the information in other fields. The ATO requires you to enter only whole dollar amounts in your activity statement. Therefore, BASlink does not allow you to enter decimal or negative values in any fields.
If you have already set up your BAS using BASlink in Microsoft Excel...
In MYOB Accounting/Plus 10 and MYOB Premier Accounting 4, BASlink was a special Microsoft Excel template. If you used the Excel version of BASlink to complete your activity statement, you can now easily upgrade your setup to this new version. Note that the BASlink upgrader is only available in the Windows version of BASlink. If you need to complete your first BAS soon, you may want to complete it in the Excel version and then convert to this new version of BASlink for your next BAS. To upgrade from the Excel version of BASlink to this new version: 1 2 3 Start BASlink as shown on page 44 Select Upgrade assistant... from the File menu. The Select File To Convert window will appear. Locate and open the .xlt BASlink template that was in Excel. (The default location for these xlt files in MYOB Accounting is c:\myob10\Bas\.) Microsoft Excel will launch for a few seconds and the setup information will be extracted from the Excel template. If the Welcome to BASlink window appears, press the Close button. When the upgrade is complete, review each field in BASlink and ensure that the setup of the fields is correct. Your settings are saved to a file with the ABN as the file name. The file will be stored in the BASlink\Setup folder of your new MYOB Accounting folder.
5 6
See Step 7 - Save your setup file on page 94 for information about working with setup files.
46
Completing the Calculation Sheet

The next step is to complete the Calculation Sheet, which is the back page of your activity statement. The Calculation Sheet is divided into separate sections GST (BAS only), PAYG Withholdings, PAYG Instalments and FBT Instalments. Each section is described in detail in the following pages. Complete the sections that are relevant to you.
Step 1 2 3 4
Description
Complete the GST fields (BAS only). See page 48.
Complete the PAYG Withholding fields. See page 59.
Complete the PAYG Instalment fields. See page 63.
Complete the FBT Instalment fields. See page 73.
47
BASGST fields
Complete the GST fields (G1 to G20) on the Calculation Sheet.
G1
Record your total sales and income
About this field

This field is used to record the gross sales and any other income earned by your business. This figure includes any GST you have collected the total of G2 + G3 + G4.
How to complete this field

1 2 Click on the Setup button next to the G1 field. MYOB Accounting will now display a list of all the tax codes that are appropriate for the G1 field. Mark the X column next to the tax codes you want to include in the G1 field. The suggested default tax codes for this field are GST, FRE (GST Free), EXP (Export Sales) and ITS (Input Taxed).
Select the relevant tax codes in this column. An X will appear next to the selected tax codes. To de-select a tax code, click on the X. Note that the Field Setup dialog doesnt display tax codes that are not relevant to a particular field.
48
If a tax code you linked to G1 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. For example, if you selected the Export Sales tax code at G1, you also need to select it at G2. So select G2 in the dialog box and click OK.
This shortcut saves you having to set up the G2 field separately. When you return to the BAS, you will notice that the G2 field has already been filled. 4 When you have marked the appropriate tax codes, click OK. You are returned to the BAS form, and the total of the tax codes you have linked to the G1 field is automatically displayed in the G1 field.
More information about this field

Adjustments
If you have any adjustments such as sales returns and discounts, you have the option of increasing or reducing the total in G1, or recording them separately in the G7 or G18 fields .
Note
Where a supply has been made that spans 1 July 2000, you need to include that portion of the sale that falls after this date.
Check:
you have included any additional tax codes you have created, which you may need to include in this total. Please check with your accountant. for any special rules for hire purchase, layby, door to door sales, coin operated machine sales, conditional contracts, insurance and so on. Please check with your accountant.
49
G2
Record your export sales
About this field

This field is used to record your export sales, which are GST-free. Complete G2 only if you have made export sales in the course of your business. All amounts included at G2 should also be included at G1.

1 2 Click on the Setup button beside the G2 (Exports) field. Select any other tax codes you may have created to record your income from exports. The suggested default tax code for this field is EXP (Export Sales). If you linked the EXP tax code to the G2 field when completing G1, the EXP code will already be selected here. 3 Click OK, and the Exports field on the BAS is updated with your total income from exports.
G3
Other GST-free supplies
About this field

This field is used to record any GST-free sales/supplies you have made, other than export sales/supplies. All amounts included in this field should also be included at G1. Examples of GST free supplies include: Fresh food produce Many medical services and products Many educational courses

1 2 Click on the Setup button beside the G3 (Other GST-Free supplies) field. Select the tax codes you want to be included in this total by clicking in the X column beside each required tax code. The suggested default tax code for this field is FRE (GST Free).
50
If you linked the FRE tax code to the G3 field when completing G1, the FRE code will already be selected here. 3 Click OK, and the new total is displayed in the G3 field on the BAS form.
G4
Input taxed sales & income & other supplies
About this field

This field is used to record any sales of input taxed supplies you have made. All amounts included at G4 should also be included at G1.

1 2 Click on the Setup button beside the G4 field. Select the tax codes you want to include in this total by clicking in the X column of each required code. The suggested default tax code for this field is ITS (Input Taxed). If you linked the ITS tax code to the G4 field when completing G1, the ITS code will already be selected here. 3 Click OK and the new total is displayed in the G4 field on the BAS form.
More information
Input taxed supplies are supplies on which no GST is added to the final selling price. Businesses might pay GST when purchasing their supplies but they cannot claim an Input Tax credit for this GST paid. Examples of Input Taxed supplies are: Residential rents Unit trusts
G5
Total GST-free & input taxed supplies
BASlink automatically calculates the total GST-free and input taxed supplies for you, by adding the totals in fields G2, G3 and G4.
51
G6
Total taxable supplies
BASlink automatically calculates the total taxable supplies, by subtracting the total in G5 from G1.
G7
Adjustments
About this field

This field is used to record your adjustments. When you make adjustments in MYOB Accounting by creating a negative invoice, the adjustment is recorded against the original GST tax code, and therefore any adjustments are automatically included in the G1 field. However, if recording your adjustments in G10 or G11 creates a negative total, you may need to use G7 to record adjustments. For more information on adjustments, see page 59 of your Business Activity Statement Instructions. To view the GST Adjustment Notes support note, visit the MYOB website at www.myob.com.au/gst.
G8
Total taxable supplies after adjustments
BASlink automatically calculates the total taxable supplies after adjustments by adding the totals in G6 and G7 and displaying the total in G8.
52
G9
Calculate your total GST payable
Calculation Sheet method

If you are using the Calculation Sheet method, BASlink automatically calculates the total GST payable for the current reporting period by dividing the total in G8 by eleven. This amount will be offset against input tax or other tax credits owed to you.
Derived from Accounts method

If you are using the Derived from Accounts method, BASlink automatically calculates the total GST payable for the current reporting period by calculating the tax amount of the tax codes selected at G10 and G11.This amount will be offset against input tax or other tax credits owed to you.
G10
Capital Acquisitions
About this field

This field is used to record the acquisition of capital items for use in your business.

1 2 Click on the Setup button beside the G10 (Capital Acquisitions) field. Select the tax code(s) you have used to record your Capital Acquisitions in MYOB Accounting.The suggested default tax code for this field is GCA (Capital Acquisitions). Note that any tax codes you select at G10 cannot also be selected at G11. 3 If a tax code you linked to G10 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. Click OK and the new Capital Acquisitions total is displayed in the G10 field on the BAS form.

This field is where you include the amounts greater than $300 for acquisitions of capital items for use in your business. This includes amounts paid for capital assets
53
such as plant and equipment, motor vehicles, land and buildings, and for other expenditure of a capital nature. Include the whole amount (including GST) at G10 and the part of the amount, if any, that relates to planned private use at G15. Capital purchase returns can be allocated here and this is the preferred method in MYOB Accounting. Capital acquisitions for which you pay $300 or less should be included at G11.
G11
Other Acquisitions
About this field

This area relates to input tax credits of non capital items, or capital items less than $300.

1 2 Click on the Setup button beside the G11 (Other Acquisitions) field. Select the tax codes you have used to record other acquisitions in MYOB Accounting. The suggested default tax codes for this field are GST, FRE (GST Free), INP (Input Taxed), ABN (No ABN Withholding), PRI (Private Use) and GNR (GST Non Registered). Note that you cannot select a tax code at G11 that has already been selected at G10. If you do, BASlink will de-select this tax code from G10. 3 If a tax code you linked to G11 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. Click OK and the new Other Acquisitions total is displayed in the G11 field on the BAS form.
More information
This will usually include all other business expenses, but not private expenses. If an expense is partly business and partly private, make sure you include it here. In addition, you will need to adjust the private portion at G15. If an expense relates to an input taxed sale, do include it here and also at G13 (Input Taxed Sales). Purchase returns and other input tax credit adjustments can be allocated here so long as these adjustments do not create a negative total.
54
Also include reimbursements paid to employees, agents, partners etc. and note that special rules apply to second hand goods and long term commercial residential premises. For more information about processing reimbursements paid to employees, visit http://www.myob.com.au/support/notes/gst/, and choose Employee Reimbursements with GST.
G12
Total acquisitions
BASlink automatically calculates your total acquisitions for the reporting period by adding G10 and G11.
G13
Acquisitions for making input taxed sales, income and other supplies
About this field

This field is used to record any expenses that relate to making Input Taxed sales. Remember, you are not entitled to input tax credits for GST included in purchases and expenses related to making input taxed supplies. However, if you make financial supplies, you could be entitled to a partial credit for certain acquisitions. Note that special rules apply.

1 2 3 Click on the Setup button beside the G13 (Acquisitions for making input taxed sales & income & other supplies) field. Select the tax codes you have used for recording your input taxed purchases and other supplies. The suggested default tax code for this field is INP (Input Taxed). If a tax code you linked to G13 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. Click OK and the new total of input tax credits for GST included in GST purchases and expenses is displayed in the G13 field on the BAS form.
55
More information
Note that if an acquisition has no GST in the price (it is GST-free or input taxed), and is used for making input taxed supplies, then it should be allocated the FRE (GST-Free) code and selected at G14.
G14
Acquisitions with no GST in the price
About this field

This is where you include amounts for acquisitions where the supply to you is not a taxable supply and therefore no GST is included in the price charged by the supplier. Your GST-free purchases should be recorded here.

1 2 Click on the Setup button beside the G14 (Acquisitions with no GST in the price) field. Select the tax codes you have used to record the purchase of acquisitions with no GST in the price in MYOB Accounting. The suggested default tax codes for this field are FRE (GST Free), ABN (No ABN Withholding) and GNR (GST NonRegistered). If a tax code you linked to G14 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. Click OK and the new total is displayed in the G14 field on the BAS form.
G15
Total estimated private use of acquisitions
About this field

If you include an amount for an acquisition at G10 or G11 and, at the time you made the purchase or incurred the expense you planned to use the good or service partly for private or domestic purposes, you need to include an amount at G15. The amount you include at G15 is the part of the payment relating to the planned private or domestic use.
56
For more information about how to handle private use in MYOB Accounting, visit http://www.myob.com.au/support/notes/gst/, and choose GST Purchases with Private Use: Sole Trader & Individuals.

1 2 Click on the Setup button beside the G15 (Total of estimated private use of acquisitions non-income tax deductible acquisitions) field. Select the tax code(s) you have used to record the part of payments relating to private use in MYOB Accounting. The suggested default tax code for this field is PRI (Private Use). If a tax code you linked to G15 should also be linked to another BAS field, BASlink will display a list of fields. Select the field the tax code should be linked to by clicking on the radio button and then click OK. Click OK and the new total is displayed in the G15 field on the BAS form.
More information
Note that if an acquisition has no GST in the price (GST-free or input taxed), and is used partly for private use, then it should be allocated to the FRE (GST-Free) code and selected at G14.
G16
Total Non-Creditable Acquisitions
Non-creditable acquisitions are purchases that you have made that are not entitled to an Input Tax Credit. BASlink automatically calculates the total non-creditable acquisitions by adding G13, G14, and G15. This total is then displayed in the G16 field.
G17
Total Creditable Acquisitions
Creditable acquisitions are purchases that you have made for which you are entitled to an Input Tax Credit. BASlink automatically subtracts G16 from G12 to calculate the total of your creditable acquisitions in this field. This total is then displayed in G17.
57
G18
Adjustments
About this field

This field is used to record your adjustments. When you create adjustments in MYOB Accounting, by creating a negative purchase, the adjustment is recorded against the original GST tax code, and therefore any adjustments are automatically included in the G10 or G11 field. However, if recording your adjustments in G1 creates a negative total, you may need to record adjustments in G18. For more information on adjustments, see page 59 of your Business Activity Statement Instructions. To view the GST Adjustment Notes support note, visit the MYOB website at www.myob.com.au/gst.
G19
Total Creditable Acquisitions after Adjustments
BASlink automatically calculates this field, adding G17 and G18.
G20
Total Input Tax Credits
This field displays your total input tax credit amount for the current tax reporting period.
Calculation Sheet method

BASlink automatically calculates this field, dividing the G19 total by eleven.
Derived from Accounts method

BASlink automatically calculates this field by calculating the tax amount of the tax codes selected at G1.
58
PAYG Withholdings fields
The W fields W1, W2, W3 and W4 on the activity statement are where you report your Pay As You Go (PAYG) withholdings to the ATO. PAYG Withholding has four key aspects.
1. PAYG for Employees

PAYG for employees is identical to the previous PAYE system. This type of withholding is reported in the W1 and W2 fields on the activity statement.
2. Voluntary Withholding Agreement

The second aspect is the Voluntary Withholding Agreement, where the business and the sub-contractor or supplier agree to this type of relationship. In this situation, the sub-contractor or supplier must have an ABN and not be subject to any other withholding. The ATO have indicated that the Voluntary Agreement Withholding rate will default to 20% or the individual may choose to use their Commissioners instalment rate. In MYOB Accounting you would use the Voluntary Withholdings tax code (VWH) to record these withholdings. This type of withholding is reported in the W1 and W2 fields.
3. No TFN
The third aspect to PAYG Withholdings is the No TFN situation. If an investor has not provided you with their Tax File Number, you are required to withhold (from the investment distributions made to them) at the top marginal rate, currently 48.5%. This type of withholding is reported in the W3 field.
4. No ABN
The fourth and final aspect to PAYG Withholdings is the No ABN situation. If no ABN is provided to you, you are required to withhold (from your payment to the supplier) at the top marginal rate, currently 48.5%. There are some exceptions and these include an individual paying for private expenses, money which is exempt income for the recipient, money already withheld due to no TFN law or the recipient has provided a written, signed statement that supply is private, domestic or hobby related. In MYOB Accounting, use the NOA (no ABN Withholding) code set at the -48.5% rate. This type of withholding is reported in the W4 field.
59
Do you have to report PAYG Withholdings?

Yes. Note that if there is no reporting period specified above the W fields section of the activity statement, then you dont need to complete this section of the activity statement. Issues of when to complete the W fields are explained later in this document.
W1
Total of salary, wages and other payments
About this field

This field is used to record the total salaries, wages and other payments you have paid your employees and others. This includes gross wages where an employee may have remained below the tax free threshold.

1 2 Click on the Setup button for W1. Click in the X column to select the tax code(s) you want to include in this field. If you are using MYOB Accounting, the suggested default tax codes for this field are PAY (PAYG Withholding) and VWH (Voluntary Withholding). If you are using MYOB Accounting Plus or MYOB Premier Accountings integrated payroll, you need to select the Wages type payroll categories used during the period as well as the VWH tax code. Note that the tax codes you select here will also be selected in the W2 field. If you de-select a tax code here, BASlink will automatically de-select this tax code in W2.
Select the tax codes and payroll categories in this column. An X will appear next to the selected tax codes. To de-select a code or payroll category, click on the X.
Click OK, and the total of the tax code amounts is automatically calculated and displayed on the BAS form.
60
W2
Amounts (tax) withheld from salary, wages and other payments
About this field

This field requires you to enter the amount you withheld from the payments at W1. This will normally be the income tax deductions on salaries and wages paid to employees, voluntary withholdings, and any other special payments.

1 2 Click on the Setup button for W2. Click in the X column to select the tax codes you want to include in this field. If you are using MYOB Accounting, the suggested default tax codes for this field are PAY (PAYG Withholding) and VWH (Voluntary Withholding). If you are using MYOB Accounting Plus or Premier Accountings integrated payroll, you will need to select your PAYG Tax payroll category at W2 as well as the VWH tax code. Note that if you selected any tax codes at W1, these tax codes will automatically be selected at W2. If you de-select any tax codes at W2, they will also be de-selected at W1. 3 Click OK, and the total of the tax code amounts is automatically calculated and displayed on the BAS form.
W3
Amounts withheld from investment distributions where no TFN is quoted
About this field

This field only applies to investment bodies. Insert here the amount you withheld from investors distributions where they failed to provide their Tax File Number. The withholding rate is made at the top marginal rate, plus the medicare levy. Do not include in this field amounts you have withheld from interest, dividends, and royalties paid to non-residents the ATO will provide separate payment books for these. As the due dates vary according to the size of your business, we suggest you contact your accountant for additional advice.
61

1 2 3 Click on the Setup button for W3. Click in the X column to select the tax code(s) you want to include in this field. The suggested default tax code for this field is TFN (No TFN). Click OK, and the total of all the tax code amounts is automatically calculated and displayed on the BAS form.
W4
Amounts withheld from payments of invoices where no ABN is quoted
About this field

Under the GST legislation, businesses that fail to quote their ABN on invoices of more than $50 can expect nearly half of the due payment to be withheld by their customers. The amount to be withheld is calculated at the top marginal rate plus the Medicare levy. Any amount you have withheld should be included at W4. You should be recording any payments you have withheld from suppliers who dont have an ABN against the NOA tax code. If you dont already have this tax code set up in your Tax Code list, we recommend you create it.

1 2 3 Click on the Setup button for W4. Click in the X column to select the tax code(s) you want to include in this field. The suggested default tax code for this field is NOA (No ABN Withholding). Click OK, and the total of all the tax code amounts is automatically calculated and displayed on the BAS form.
62
PAYG Instalment fields

The T fields on the Calculation Sheet of your activity statement are used to report your PAYG instalments. The following illustration shows the PAYG Instalment fields on the Business Activity Statement. The BAS form contains only fields T1 - T4.
The illustration below shows the PAYG Instalment fields on the Instalment Activity Statement. The IAS gives you options for determining your PAYG instalment. See page 64 for more information.
If there is no reporting period specified above the T fields section of the activity statement, then you dont need to complete this section of the activity statement.
What are PAYG instalments?

PAYG Instalments are the progressive payment of income tax throughout the year. All businesses, and individuals with investment income, are required to pay PAYG instalments on their income. Instead of remitting provisional taxes, these businesses
63
pay annual or quarterly instalments. The instalment can be calculated based on a flat rate determined from their most recent tax return and income actually derived in the relevant quarter. The Instalment tax amount to be paid will be determined by a PAYG Instalment rate issued to you by the ATO, which is displayed in the T2 field. If you are completing the BAS and did not receive an Instalment rate, PAYG Instalments do not apply to you. If unsure, please see your accountant. If there is an instalment rate pre-printed in field T2, then you must complete the T1 field before sending the form back to the ATO. If you are completing the IAS, you have different options for determining your instalment amount. You can either opt to use the instalment rate pre-printed at T2 or the commissioners instalment amount pre-printed at T5 or the commissioners/varied GDP notional amount at T7. For more information, see the following section. If there are no pre-printed values at T2, T5 or T7, then PAYG Instalments do not apply to you. If unsure, please see your accountant. If you are registered for GST, you pay PAYG instalments quarterly. If you are not registered for GST, you lodge the Instalment Activity Statement and pay your PAYG instalments either quarterly or annually
Options for determining your PAYG instalment IAS only

If you are completing the Instalment Activity Statement, you have the following options for determining the amount of your instalment.
Option 1
For annual or quarterly payers: Using an instalment rate
You can use the instalment rate to work out your instalment. If you choose this option, you work out your quarterly or annual instalment by multiplying your instalment income for the quarter or year by the instalment rate printed in the T2 field on your activity statement. The ATO states that individuals and trusts paying annually (other than trustees of corporate unit trusts and public trading trusts) can use the instalment rate option only from the 2002-03 income year onward.
Option 2
For annual payers only: Using notional tax
If you are not registered for GST and if your most recent notional tax as advised by the ATO is less than $8,000, then you can pay an annual instalment. You can use the instalment amount printed at T5, which is your notional tax amount as worked out by the ATO. No calculations are required on your part if you choose this option. The
64
amount printed at T5 can be varied if there is a change in your circumstances. See page 69 for instructions on completing this section.
For certain quarterly payers only: Using GDP-adjusted notional tax

You can use the GDP-adjusted notional tax amount (pre-printed at T7) if you pay quarterly instalments and meet the following criteria: You are not registered (or required to be registered) for GST Your most recent notional tax as advised by the ATO is $8,000 or more. The amount at T7 is your notional tax, increased in line with movements in gross domestic products (GDP). No calculations are required on your part if you use this option. The amount printed at T7 can be varied if there is a change in your circumstances. See page 70 for instructions on completing this section.
Which option should I use?

The ATO states the following about determining which option you should use: Option 1 If you choose this option, you will be able to work out your instalment amount based on actual income you have earned, which should help you manage your cash flow. Option 2 (annual payers and certain quarterly payers) If you choose this option, the main advantage is that you do not have to work out your instalment amount. The ATO works out the amount for you, based on your notional tax from a previous year. You can vary your instalment amount regardless of whether you choose Option 1 or 2.
T1
Instalment Income
About this field

This field is used to record your total instalment income. Your instalment income is usually your gross income, exclusive of GST, from the relevant reporting period. This would include your ordinary business and investment income, partnership income, trust income and amounts withdrawn from farm management deposits.

1 Click on the Setup button beside the T1 (Instalment Income) field.
65
Select the accounts in which you record all taxable forms of income by clicking in the X column.
Click the All button to select all accounts. Click the None button to de-select all selected
Click OK and the total of all the selected accounts your total income earned in this period is automatically calculated and displayed on the activity statement in the T1 field. Income where you are subject to a withholding should be separated within your Chart of Accounts.
Special rules for partnerships and beneficiary trusts

If a partnership itself or a trust is the reporting entity for this activity statement, this field should not be completed. Only partners of a partnership, or beneficiaries of a trust should complete this field. Partners: The amount of PAYG instalment to show at T1 = (Your assessable income from the partnership for the last income year / Partnerships instalment income for the last income year) x Partnerships instalment income for the current period. Beneficiaries: The amount of PAYG instalment to show at T1 = (Your assessable income from the trust for the last income year / Trusts instalment income for the last income year) x Trusts instalment income for the current period. For complete information on how to show your share of the partnership or trusts instalment income, see your Business Activity Statement Instructions or Instalment Activity Statement Instructions provided by the ATO.
66
T2
Commissioners instalment rate
About this field

The field displays the PAYG instalment rate the ATO has calculated for you to pay, which is called the Commissioners rate. This rate is calculated based on your most recently lodged tax return. Your total income at T1 is multiplied by this rate to calculate your PAYG instalment for this period. You can either: use this rate, or specify another rate. You can enter a new rate in the T3 field. If there is no instalment rate in this field, nor has one been previously advised to you by the ATO, you dont need to report any income instalment tax for the period.

Manually enter this number from your activity statement into BASlink the first time you use BASlink. If you are lodging your activity statement electronically, you can obtain this rate from the Electronic Certificate. You will need to alter this number in the future if the ATO alter it.

The instalment rate is calculated as follows: Instalment Rate = total tax/ total income
T3
Varied instalment rate
About this field

You can vary your instalment rate if you believe the existing rate will result in you overpaying your income tax for the year. You should take care selecting your rate as you may be liable to pay interest if your estimate of the instalment rate is less than 85% of your actual liability for the income year. If you vary the rate, you must select an appropriate reason in T4.

Enter the new instalment rate you wish to pay in the T3 (Varied Instalment Rate) field.
67
T4
Reason for variation
About this field

If you have specified a new instalment rate in T3 from that already displayed in T2, you must enter a reason for varying your instalment rate in T4. The ATO supply a list of acceptable reasons for varying the instalment rate, and the following table shows the codes that can be used in both the BAS and IAS. See your Activity Statement Instructions booklet for more information about which of these codes you can use in your activity statement.
Code
01 02 03 04 05 06 07 08 09 10 11 12 13 Mergers, acquisitions and takeovers Cessation of business activity
Reason
Expected utilisation of losses of a revenue or capital nature Significant (abnormal) transactions affecting income or expenses Change in trading conditions affecting income or expenses Domestic or foreign financial market changes Change in investment strategies or policies Change in product mix Business expansion or contraction Change in entity structure Internal or external restructuring of business activity Change in any legislation Change in profit margin
68
Code
51 52 53 54 55 56 Sale of part of your share portfolio
Reason
Savings or investments used for private purposes. Sale of an investment property Decreased or increased rent from an investment property Acquisition of additional investments Other

Click on the down arrow beside the T4 field and select the two-digit code for the reason you are varying your instalment rate.
Option 2 for annual payers only (IAS only)

The following fields are only available on the Instalment Activity Statement and will be active only if you have specified in the BAS Information window that you are reporting your PAYG Instalments annually. If you are completing the Business Activity Statement, skip this section and go to FBT instalment fields on page 73.
T5
Commissioners instalment amount
About this field

The field displays the annual instalment amount the ATO has calculated for you to pay. This amount is calculated based on your notional tax amount.
69
You can either: use this amount, or specify another amount. You can enter a new amount in the T6 field.

Manually enter this amount from your activity statement into BASlink the first time you use BASlink. You will need to alter this number in the future if the ATO alter it.
T6
Varied instalment amount
About this field

You can vary your instalment amount if you believe the existing amount will result in you overpaying your income tax for the year. If you are varying the amount, you should estimate your benchmark tax. The ATO defines benchmark tax as your tax payable for the year, reduced by the tax attributable to any net capital gains included in assessable income and your credits for amounts withheld from payments to you. You should take care selecting the amount as you may be liable to pay interest if your estimate of the instalment amount is less than 85% of your actual benchmark tax as calculated by the ATO after the end of the income year. If you vary the amount, you must select an appropriate reason in T4.

Enter the new instalment amount you wish to pay in the T6 (Varied Instalment Amount) field.
Option 2 for certain quarterly payers only (IAS only)

The following fields are only available on the Instalment Activity Statement. Complete T7 T10 only if you are paying quarterly instalments based on a GDPadjusted notional tax amount.
70
Commissioners varied/GDP amount
T7
About this field
The field displays the amount the ATO has calculated for you to pay. This is based on your notional tax amount, as increased by GDP. For more information about this field, see page 31 of the Instalment Activity Statement. Instructions. You can either: use this amount, or specify another amount. You can enter a new amount in the T8 field.

Manually enter this amount from your activity statement into BASlink the first time you use BASlink. You will need to alter this number in the future if the ATO alter it.
T8
Estimated Benchmark Tax
About this field

You can vary your GDP-adjusted notional tax amount if you believe the existing amount will result in you overpaying your income tax for the year. If you are varying the amount, you should first estimate your benchmark tax, which as defined by the ATO, is your tax payable for the year, reduced by the tax attributable to any net capital gains included in assessable income and your credits for amounts withheld from payments to you. You should take care selecting the amount as you may be liable to pay interest if your estimate of the instalment amount is less than 85% of your actual benchmark tax. If you complete this field, you should also complete T9 and T10.

Estimate your benchmark tax and enter this amount in the T8 (Estimated Benchmark Tax) field.
71
T9
New Varied GDP Amount
About this field

This field requires you to enter your varied GDP-adjusted notional tax amount for the quarter. Refer to page 32 of the Instalment Activity Instructions for instructions on how to work out this amount.

If the varied GDP-adjusted notional tax amount you worked out is a positive amount, enter this amount at T9. If this is a negative amount or zero, enter 0 at T9. If this is a negative amount, you may want to claim a credit at 5B (for more information, see page 35 of your Instalment Activity Statement Instructions).
T10
I choose to pay quarterly PAYG instalments on the basis of GDP-adjusted notional tax
About this field

If you want to use a GDP-adjusted notional tax amount, you must indicate your choice on the activity statement in your first quarter of an income year.

Click the down arrow beside the T10 field and select Y if you will be paying quarterly instalments based on your varied GDP amount or GDP-adjusted notional tax amount for the remainder of the income year.
72
FBT instalment fields
What are FBT instalments?

The ATO defines FBT as follows: FBT is a tax payable by employers in respect of fringe benefits provided to employees in the place of, or in addition to, salary or wages. Generally, employers can claim an income tax deduction for the cost of providing the fringe benefits and the amount of FBT incurred.
Do you need to pay FBT instalments?

The ATO has set an instalment threshold for the FBT year starting 1 April 2000 of $3000. This means that if you reported an FBT liability in the previous financial year of $3000 or more, you need to pay FBT instalments this financial year. Note that if there is no reporting period specified above the F fields section of the activity statement, then you dont need to complete this section of the activity statement.
We strongly recommend that you consult with your accountant about reporting your FBT liability to the ATO.
F1
Fringe Benefits Tax instalment
About this field

This field displays your FBT instalment amount for the current reporting period. This amount is a notional amount, and is usually the same as your previous years FBT liability.
73

The instalment amount expected by the ATO has been pre-printed on the activity statement provided to you. If you are lodging your activity statement electronically, you can obtain this amount from the Electronic Certificate. Copy this amount into field F1. If you dont want to vary your instalment amount, you dont need to enter anything in fields F2 - F4. If you do want to vary your instalment amount, you will need to complete fields F2, F3 and F4.
F2
Estimated total fringe benefits tax payable
About this field

This field is used to record your total estimated FBT payable for the current year.

If you wish to vary your FBT instalments, then enter your full year estimate of Fringe Benefits Tax payable. Your instalment amount for this reporting period should then be based on this amount. Enter your total estimated FBT payable for the current year.
F3
Varied Fringe Benefits tax instalment amount
About this field

This field is used to calculate your FBT instalment amount for this reporting period. The ATO gives the following formula to calculate this amount: (Estimated total FBT payable x Relevant fraction) Previous instalment liabilities Estimated total FBT payable is the amount you entered in F2.
74
Relevant fractions are: .25 for the quarter ended 30 June .50 for the quarter ended 30 September .75 for the quarter ended 31 December 1.0 for the quarter ended 31 March

Calculate the instalment amount using the ATOs formula, as illustrated below, and enter the amount in the F3 field. What value did you enter in F2? Multiply by relevant fraction .25 / .50 / .75 / 1 Result is amount of FBT that should have been paid to date Total Previous instalments 7/00 1/01 4/01 $____ $____ $____ (total) Deduct total previous instalment amount from the amount of FBT that should have been paid to date. This is the amount payable/refundable If a payment is due, then enter this value in F3. If a refund is due, then it should be entered directly in field 6B on the front page. ($_________) 10/00 $____ $_________ $_________
$__________
F4
Reason for Variation
About this field

This field is used to record the reason for you varying the instalment amount.

Click the down arrow beside the F4 field and choose one of the reason codes listed.
75
The reason code definitions are:
Code
01 02 03 04 05 06 07
Reason
Benefits ceased/reduced and salary increased Benefits ceased/reduced and no compensation to employees Fewer employees Increase in employee contribution Rebate now claimed Liquidation, receiver/manager appointed None of the above
76
Review Calculation Sheet

Use this table as a quick reference guide for the suggested tax codes for each field on the BAS or IAS. Note that the G1 - G20 fields apply only to the BAS and that the T5 - T10 fields apply only to the IAS. Fields that are common to both the BAS and the IAS (W1 - T4) are shaded in grey in this table.
BAS/IAS field
G1 G2 G3 G4 G5 G6 EXP, FRE, ITS, GST EXP FRE ITS
Suggested Tax Codes
Calculated by BASlink Calculated by BASlink Not required, as adjustments should be allocated to the same tax code as the original transaction. Calculated by BASlink Calculated by BASlink GCA FRE, INP, GNR, NOA, GST, PRI Calculated by BASlink INP FRE, GNR, NOA PRI
G7
G8 G9 G10 G11 G12 G13 G14 G15
77
BAS/IAS field
G16 G17
Suggested Tax Codes

Calculated by BASlink Calculated by BASlink Not required as adjustments should be allocated to the same tax code as the original transaction. Calculated by BASlink Calculated by BASlink MYOB Accounting: Include the VWH and PAY tax codes. Do not include voluntary tax codes used to record Amounts from investment distributions where no TFN is quoted and Amounts withheld from payment of invoices where no ABN is quoted such as NOA. These amounts are recorded at W3 and W4. MYOB Accounting Plus and MYOB Premier Accounting: Include all Wage Payroll Categories used during the period. Also include the VWH tax code. MYOB Accounting: Include the PAY and VWH tax codes. Do not include voluntary tax codes used to record Amounts from investment distributions where no TFN is quoted and Amounts withheld from payment of invoices where no ABN is quoted. These amounts are recorded at W3 and W4. MYOB Accounting Plus and MYOB Premier Accounting: Include the PAYG payroll tax category. Also include the VWH tax code. Include the tax codes used to record Amounts from investment distributions where no TFN is quoted such as TFN. Include voluntary tax codes used to record Amounts withheld from payment of invoices where no ABN is quoted such as NOA.
G18
G19 G20
W1
W2
W3
W4
78
BAS/IAS field
Suggested Tax Codes

Include all taxable income accounts. This includes income from sales, fees, interest paid or credited to a bank account, gross rent, dividends paid or applied and royalties. Also include any invoices on which you did not include your ABN.
T1
Do not include wages, salaries and voluntary withholdings, imputation credits received from dividends, capital gains unless you are the trustee of a superannuation fund and exempt income. For more information, see the Business Activity Statement/ Instalment Activity Statement Instruction book, available for downloading from the ATO website at www.taxreform.ato.gov.au. Insert here the commissioners instalment rate which should be printed on your activity statement. You can vary your tax rate if the current rate does not adequately reflect your expected tax position for the year. If you vary the rate, enter it here. If you vary your rate, you must give a reason for the variance; enter it here. For more information, see the ATOs Business Activity Statement or Instalment Activity Statement Instructions. Insert here the commissioners instalment amount which should be printed on your activity statement. You can vary your tax amount if the current amount does not adequately reflect your expected tax position for the year. If you vary the amount, enter it here. Insert here the commissioners/varied GDP amount which should be printed on your activity statement. You can vary the GDP-adjusted notional tax amount if the current amount does not adequately reflect your expected tax position for the year. Estimate your benchmark tax and enter it here. Work out and insert your new GDP-adjusted notional tax amount in this field. Insert Y in this field if you choose to pay quarterly PAYG instalments on the basis of GDP-adjusted notional tax.
T2
T3
T4
T5
T6
T7
T8
T9
T10
79
Completing the Summary Sheet

The following pages detail how to complete the Summary Sheet of your activity statement. If you are filling out the Instalment Activity Statement, the fields relating to GST, Luxury Car Tax and Wine Equalisation Tax do not apply to you; you should skip the instructions for completing fields 1A to 3. The illustration below partly shows a sample of the front page of the Business Activity Statement.
80
1A
Goods and services tax payable
About this field

This field displays the total Goods and Services Tax payable amount, based on the information you entered in fields G1 to G9 on the Calculation Sheet. BASlink automatically displays this amount when you complete field G9.
1B
Credit for Goods and Services tax paid
About this field

This field displays the total credit for the Goods and Services Tax that you have paid. BASlink automatically displays this amount when you complete the Calculation Sheet.
1C
Wine equalisation tax payable
About this field

This field is used to record the amount of Wine Equalisation Tax you need to pay.

1 2 Click on the Setup button beside the 1C (Wine equalisation tax payable) field. Select the tax codes you want to be included in this total by clicking in the X column beside each required tax code. The suggested default tax code for this field is WET (Wine Equalisation Tax).
Click OK, and the new total is displayed in the 1C field on the BAS form.
81
1D
Wine equalisation tax refundable
About this field

This field is used to record the amount of Wine Equalisation Tax you should be refunded by the ATO. Refunds are available if you paid more Wine Equalisation Tax than was properly payable. Reasons for claiming a credit might include overpaying your tax because you applied an incorrect tax rate or used an incorrect taxable value, paying the tax twice, forgetting to quote your ABN, and others. We recommend that you contact the ATO if you are unsure about whether or not you are eligible for a credit.

Enter the amount of the WET credit in the 1D (Wine equalisation tax refundable) field. This amount will then be used to calculate your total GST credit in 2B.
1E
Luxury car tax payable
About this field

This field is used to record the luxury car tax you need to pay.

1 2 Click on the Setup button beside the 1E (Luxury car tax payable) field. Select the tax codes you want to be included in this total by clicking in the X column beside each required tax code. The suggested default tax code for this field is LCT (Luxury Car Tax).
Click OK, and the new total is displayed in the 1C field on the BAS form.
More information
LCT is paid by entities such as retailers, wholesalers and manufacturers who make a taxable supply of a luxury car. Importers (including private buyers) that make a taxable importation of a luxury car will also pay LCT.
82
1F
Luxury car tax refundable
About this field

Include here any adjustments to luxury car tax paid in previous tax periods if you paid too much luxury car tax on a previous activity statement.

Enter the amount of luxury car tax to be refunded in the 1F field.
1G
Credit for Wholesale Sales Tax
If this applies to you as of June 30, you should have performed a stocktake and calculated how much WST you had paid for your current stock on hand. Enter your WST credit amount in the 1G (Credit for Wholesale Sales Tax) field. You can only claim this credit once and it must be claimed on a BAS that is lodged before the 7th of January 2001.
2A 2B 3
Working out your GST payable or GST credit
When you have completed the G fields, and have a total in fields 1A (GST Payable) and 1B (Credit for GST Paid), BASlink automatically calculates the total GST you have collected in 2A by adding 1A, 1C and 1E, and the total GST you have paid in 2B. BASlink then automatically calculates the GST net amount in field 3 by subtracting 2B from 2A.
83
If this amount is a positive amount, then you owe the ATO this amount. If the amount is negative, then you are owed this amount by the ATO as a credit.
Total amounts withheld from all payments
About this field

BASlink automatically calculates the total of the W2, W3 and W4 fields, and displays the total in this field. This is the total amount of your withholdings from payments.
5A
Income tax instalment
About this field

BASlink automatically calculates your total PAYG instalment amount based on the instalment rate entered at T2 or T3 and your instalment income entered at T1. If you are completing the IAS and chose Option 2 (for annual payers), then the amount at 5A will be based on T5 or T6. If you chose Option 2 (for certain quarterly payers), then the amount at 5A will be based on T7 or T9.

This field requires you to select the General Ledger account to which the Income Tax Instalment amount will be allocated in the BASlink transaction. Click the Link button to select an account from the displayed window. This will generally be an asset account.
5B
Credit arising from reduced PAYG instalments
About this field

This field is used to record a credit adjustment for previous income tax instalments. Only complete this field if you have varied your instalment rate or the
84
Commissioners varied/GDP amount (IAS only) and it results in a refund, as at this period. A variation credit will occur only when those earlier instalments were worked out using a higher instalment rate or amount.

If you have varied your rate: 1 2 3 4 5 6 Add up your earlier instalments for the income year. These are the amounts written at 5A on your previous statements for the income year. Add up all your credits for the year. These are amounts written at 5B on your previous statements for the income year. Subtract the credits (step 1) from the instalments (step 2). Add up your instalment income for all earlier instalment quarters. These are written at T1 on your earlier statements. Multiply the total of your earlier instalment income (step 4) by the instalment rate you chose at T3. Subtract the new instalment (step 5) from the amount you paid (step 3).
If the result is positive, you have a credit and it is entered at 5B. If you are completing the IAS and chose Option 2 to determine your PAYG instalment, then enter the negative amount at T9 as a positive amount in 5B.
6A
Fringe Benefits Tax Instalment
About this field

The Fringe Benefits Tax Instalment field 6A is automatically updated from the Calculation Sheet.

This field requires you to select the General Ledger account to which the Fringe Benefits Instalment amount will be allocated in the BASlink transaction. Click the Link button to select an account from the displayed window. This will generally be an asset account.
85
6B
Credit arising from reduced fringe benefits tax instalments
About this field

You may get an FBT instalment credit if you vary your notional tax to an amount lower than the FBT payable last year. You can take this credit into account in determining any amount payable to the ATO. Calculate your FBT instalment credit using this formula: (Previous instalment liabilities + FBT instalment for this quarter any previous credits claimed) (Estimated total FBT payable x Relevant Fraction) Previous instalment liabilities are the sum of the amounts you have recorded at 6A on your previous activity statements for the FBT year. FBT instalment for this quarter is the amount you have recorded at 6A on this activity statement. Any previous credits claimed are the sum of the amounts you have recorded at 6B on your previous activity statements for the FBT year. Estimated total FBT payable is the amount you recorded at F2. Relevant fractions are: .25 for the quarter ended 30 June .50 for the quarter ended 30 September .75 for the quarter ended 31 December 1.0 for the quarter ended 31 March
Deferred company/fund instalment
About this field

This field relates to companies who are liable to pay deferred instalments under the company or fund instalment system. If you have lodged your 1999-2000 income tax return, there should be a figure pre-printed at 7. If there isnt, speak to your accountant to obtain this figure.
86

If there is a figure pre-printed/displayed at 7 on your activity statement or Electronic Certificate, enter this figure in BASlink. This field requires you to select the General Ledger account to which the deferred company/fund Instalment amount will be allocated in the BASlink transaction. Click the Link button to select an account from the displayed window. This will generally be an asset account.
7A
GST deferred on imported goods
Note: This field is only available if you are completing the Business Activity Statement and have selected to lodge the statement electronically in the BAS Info window. Importers who are registered for GST, and lodge monthly Business Activity Statements electronically, can apply to the ATO for approval to participate in the Deferred GST Scheme. The ATO will pre-fill 7A in the ECI document with the amount of GST that was deferred during the month.

If there is a figure at 7A on your ECI document, enter this figure in BASlink. This field requires you to select the General Ledger account to which the GST deferred on imported goods amount will be allocated in the BASlink transaction. Click the Link button to select an account from the displayed window. This will generally be an asset account.
8A 8B
Working out your tax payable or refundable
How you work out your final overall liability to the ATO depends on your GST reporting period. BASlink calculates your final liability in the fields 8A, 8B and 9.
87
BASlink calculates the gross amount you owe the ATO in field 8A, by adding the totals in fields 2A, 4, 5A, 6A and 7. These fields are all under the Debits heading on the front page of the activity statement. BASlink also calculates the gross amount the ATO owe you in field 8B, by adding the totals in fields 2B, 5B and 6B. These fields are all under the Credits heading on the front page of the activity statement.
Who owes who?

BASlink subtracts the total in 8B from 8A to calculate the total net amount you owe the ATO for the current reporting period. This amount is displayed in field 9.
The amount displayed in field 9 is the total net amount you either owe the ATO, or are owed by the ATO, for the current reporting period. If the amount is positive, then you owe the ATO this amount. You must pay this amount by the date shown in field A6 in the top right corner of the activity statement. If the amount is negative, then the ATO owe you this amount. The ATO will credit you this amount within 14 days of you lodging your activity statement.
Estimated time taken to complete the activity statement
About this field

You are required to provide the ATO with an estimate of the time you took to complete your activity statement, including the time you spent reading the instructions, gathering information and filling out the statement.

Enter the time you took to complete the activity statement in hours and minutes.
88
Review - BAS/IAS Summary Sheet

Use this table as a quick reference guide to review the fields on the front page of your activity statement. Note that if you lodging the IAS, only the fields shaded in grey (4 - 9) apply to you. If you are lodging the BAS, all the fields apply to you.
Field
1A 1B 1C 1D 1E 1F
Suggested Codes and Accounts

BASlink automatically updates this field. BASlink automatically updates this field. WET. Any special WET adjustments can be made here. LCT. Any special LCT adjustments can be made here. Enter the value of your Credit for Wholesale Sales Tax from your manual stock records. This is automatically calculated by BASlink. This is automatically calculated by BASlink. This is automatically calculated by BASlink. BASlink automatically updates this field. BASlink automatically updates this field, but requires you to link the amount in that field to an account, which is usually an asset account. If you adjusted your instalment rate in T3 (or GDP amount in T9), you need to recalculate your tax; the result is entered here. BASlink automatically updates this field, but requires you to link the amount to an account. which is usually an asset account.
1G
2A 2B 3 4
5A
5B
6A
89
Field
Suggested Codes and Accounts

If you adjusted your instalment amount in F3, you need to recalculate your tax; the result is entered here. The information for this field should be pre-printed. Otherwise obtain it from your accountant. BASlink automatically updates this field. This is automatically calculated by BASlink. This is automatically calculated by BASlink.
6B
8A 8B 9
90
Finalising your activity statement

Once you have filled out the Calculation Sheet and Summary Sheet of your activity statement, you need to finalise your statement by completing the steps detailed below.
Step 1 2 3 4 5 6 7
Description
Check your activity statement for errors.
Print the completed activity statement.
Print the Audit report.
Export your activity statement if you are lodging it electronically.
Print the sample transaction.
Save your completed activity statement data.
Save your activity statements setup file.
Step 1 Check your activity statement for errors

The first step to finalising your activity statement is to check it for errors. BASlink does this for you automatically. If there are any errors in your activity statement, for example, a field has not been completed or has an invalid amount, an Error List will be displayed, detailing the error and the field name. You should fix all errors before you lodge your statement. To check your activity statement for errors: 1 2 3 4 Click on the Check button at the bottom of the window or choose Check BAS/IAS from the Tasks menu. If there are any errors, BASlink will display the Error List. Click on the Help button for a detailed explanation of the errors. To fix an error, click the zoom arrow. BASlink will take you to the relevant field on your activity statement where you can make the necessary corrections. Make sure you fix all errors before you proceed.
91
Step 2 Print your completed activity statement

If you are lodging your activity statement by mail, you need to print out your completed activity statement and manually copy the calculated amounts to your BAS or IAS form. Even if you are lodging your activity statement electronically, it is a good idea to print out the completed statement so that you have a hard copy for your records. To print your activity statement, go to the Reports menu and choose Print BAS/IAS, or click on the Print button at the bottom of the BASlink window. A print preview is displayed. Click on the Print button.
Step 3 Print the reports

The Audit report lists for each field on your activity statement, the linked tax codes, and the calculated amount. It also shows the total GST inclusive amount and GST amount for each tax code. The Audit Report (Detail) also shows rounding and manual adjustments. You should print out an Audit report and check it to make sure that the amounts and linked tax codes for each BAS/IAS field are accurate. To print the Audit reports: 1 2 Go to the Reports menu and choose either the Audit Report (Summary) or Audit Report (Detail) report. The Audit report will be displayed on screen. Click on the Print button.
You can also display the Exception Report which lists all tax codes that have not been linked to any of the fields on the activity statement. You should review this report to check if you have forgotten to link any of the tax codes that you use in your data file.
Step 4 Export your activity statement

This step is applicable only if you are completing the Business Activity Statement and have selected to lodge the statement electronically in the BAS Information window. You can export your BASlink information to the ATOs Electronic Commerce Interface (ECI) software if you have ECI installed in your computer. In order to export your BAS data, you must save it as an XML file, which is the format accepted by ECI.
Important: Before you export your BAS, make sure you have copied the Document Identification Number (A1 field) from your Electronic Certificate to the A1 field in BASlink. This number, along with your ABN and statement period, will be used to match your BASlink export file to the Electronic Certificate.
92
Follow the instructions below to export your BAS: 1 2 Click on the Export button at the bottom of the BASlink window or choose Export ECI File from the Tasks menu. The Save ATO file dialog box is displayed. Specify a filename for your data file. The default file name is BAS.Sep00.xml where Sep00 is your reporting period. You can change the filename; DO NOT, however, change the BAS prefix or the .xml extension. Specify a location for your file. You may want to save the file in the BASlink folder or in the ECI application folder. Click Save. Your file is saved, and ready to be imported into ECI. For instructions on importing your file into ECI, see page 97.
3 4
Step 5 Print the sample transaction

The next step is to print out the sample cheque or deposit that BASlink has created, reflecting your payment to or refund from the ATO. You can use this sample transaction as a guide when entering the transaction in your MYOB Accounting data file. Even if you dont owe money to the ATO, you should still record this transaction in MYOB Accounting to account for this periods BAS/IAS return. To display the sample transaction, click on the Transaction button at the bottom of the window or choose Transaction from the Reports menu. A Write Cheques template similar to the one below will be displayed. If you are due for a refund from the ATO, a Make a Deposit transaction will be displayed instead.
Use this cheque as a template for the cheque you enter into MYOB Accounting. BASlink will create a Make a Deposit transaction if you are due for a refund from the ATO.
To print out this transaction, click on the Print button at the bottom of the Print Preview window. For more information on entering this transaction in MYOB Accounting, see Recording your ATO payment or credit in MYOB Accounting on page 96.
93
Step 6 Save your activity statement data

We strongly recommend that you save your activity statement data before you exit BASlink. Remember that your field setup is saved automatically to be used as a template when you next complete your activity statement. Any adjustments and manual entries you have made to the current activity statement will not be saved automatically. Therefore, if you want to retain a copy of the completed statement, you MUST save the data. You should store a copy of your data and setup file away from your computer in case your computer malfunctions or entries are inadvertently made to the settled GST period. This way you can be sure that you can reproduce your activity statement if required.
To save your activity statement data:

1 2 Go to the File menu and choose Save BAS/IAS data. The Save dialog will be displayed. Enter a filename (with the extension .bak) and location for your file and click Save.
Viewing a previous activity statement

1 2 Go to the File menu and choose Open BAS/IAS data. The Open dialog will be displayed. Find and select a .bak file and click Open.
Step 7 - Save your setup file

Saving your setup file
Your activity statement setup, including certain default values, will be saved when you exit BASlink by clicking on the Save Setup & Exit button. This will save your BAS/IAS field setup in your BASlink Setup folder with your ABN and Branch ABN or Tax File number as the file name. (This setup will be used as a template when you next complete your activity statement.) However, any manual adjustments you make to any values in your activity statement will not be saved in this file. If you need to exit BASlink part way through completing your activity statement, you will need to re-enter any manual adjustments you have made when you return. You should, therefore, make sure that you have allocated adequate time for completing your activity statement. Note: Your field setup is saved when you click OK in the Field Setup window.
94
Re-opening your setup file

You can edit your setup file by going to the File menu in BASlink and selecting Setup > Open. You will then be able to change the setup of the tax codes and the linked accounts.
Using the Save As command

If you will use BASlink for more than one company and the setup of both companies is similar, you can use the Save As command in BASlink (File menu > Setup > Save As). You need to name the file with the other companys ABN and Branch ABN, or if it is an Instalment Activity Statement setup file, with the Tax File Number, in order for BASlink to automatically use the setup file for the other company.
Copying the setup file to another computer or to a floppy disk.

To copy the setup file to another computer, open the BASlink\Setup folder in Windows Explorer and copy the .bas or .ias file to a floppy disk. Copy the setup file to the other computers BASlinks Setup folder.
If you upgrade to another product in the MYOB family...

You will be able to use your current setup even if you want to use BASlink with another product in the MYOB family. Simply copy the .bas or .ias file to the BASlink\Setup folder of the other product. Note that you will need to re-setup your activity statement if you move from Windows to Mac or vice versa. The setup file is not cross-platform, which means you will not be able to use your .bas or .ias file on a Macintosh computer, or copy your Mac BASlink setup file to Windows.
95
Recording your ATO payment or credit in MYOB Accounting
Recording your ATO payment or credit in MYOB Accounting

Once BASlink has worked out what you owe the ATO (or what the ATO owes you), and you have printed out your sample cheque or deposit, you need to record this transaction in your MYOB Accounting data file. The following example, illustrates a sample payment to the ATO.
Make sure you use the same allocation accounts as shown on your sample transaction. You will need to create an Adjustments and Rounding expense or income account to record this adjustment.
Using the sample cheque or deposit created by BASlink, enter the transaction in MYOB Accounting, making sure you use the same allocation accounts and the same amounts as shown in your sample transaction. You can assign the N-T (No Tax) code to these transaction lines. If your sample transaction has an amount allocated to the Adjustments and Rounding account, it means that BASlink has rounded some figures as required by the ATO. You will need to create an Adjustments and Rounding account in MYOB Accounting and allocate the adjustment to this account. Any manual adjustments made to the fields on the activity statement will be listed in the sample transaction, and you should use the appropriate accounts for these adjustments.
96
Lodging your activity statement electronically

The Australian Taxation Office has produced the Electronic Commerce Interface (ECI) software for use by all businesses in communicating with the ATO. Its primary function is to send and receive documents to and from the ATO electronically. The following steps detail how to import your BAS data file (which you saved in XML format) to ECI. See your ECI documentation for full instructions on how to lodge your BAS electronically. 1 2 3 Start the ECI application. Click the Business Taxes tab and select the In Tray. If you havent already obtained the Electronic Certificate from the ATO, click the Get New Documents button to receive the document across the Internet. You will need to enter your login information and password. Click the Import button. Locate the XML file you saved in BASlink and click OK. ECI will match your file to a document in the In Tray, and the information contained in your XML file will be displayed within a Business Activity Statement dated for the period for which you have prepared it. You should compare this with your BASlink reports. Click the Check button to ensure that all fields are correctly set up and formatted within the ECI software. If no errors are found, click OK to label your BAS as completed. Click Save to keep a copy of the BAS in the ECI application. Click Print to print a copy of the BAS as displayed in the ECI software. Click Close.
4 5
7 8 9
10 Click the Move to Out Tray button. This will make the document ready to be sent to the ATO. 11 Click the Out Tray tab on the left. Your BAS will be shown in the list. 12 Highlight the BAS and click the Send to ATO button. You will receive confirmation that the BAS was sent successfully. 13 Click the Exit tab on the left.
97
How often do you have to lodge a Business Activity Statement?
How often do you have to lodge a Business Activity Statement?

When you receive your Business Activity Statement, the reporting period for each section of the BAS is printed at the top of each section. The form also tells you whether or not you need to complete a particular section. It is important to realise that you wont necessarily be reporting on all your tax liabilities at the same time. For example, if you report your GST and PAYG withholding monthly you receive a monthly activity statement at the end of each month. Every third month you receive a quarterly activity statement that asks you to also report your quarterly PAYG instalment, deferred company or superannuation fund instalment and fringe benefits tax instalment.
How often do I have to report GST?

Description How often you lodge an activity statement Monthly Quarterly
Annual turnover of less than $20 million
Annual turnover of more than $20 million
Entities whose income year does not end on 30 June
98
How often do I have to report PAYG Withholdings?

Description How often you lodge an activity statement Monthly
Annual withholding obligations $25,000 or less (You can choose to lodge monthly) Annual withholding obligations of more than $25,000, but not more than $1 million *
Quarterly
* If you withhold more than $1 million a year, you pay your withholding liability approximately a week after you withhold. See the Guide to Pay As You Go for business for payment dates.
How often do I have to report PAYG Instalments?

You are required to report your PAYG Instalments quarterly.
How often do I have to report FBT Instalments?

Quarterly. If your FBT liability for the previous year was less than $3,000, you are not required to pay quarterly instalments.
99
How often do you have to lodge an Instalment Activity Statement?
How often do you have to lodge an Instalment Activity Statement?

When you receive your Instalment Activity Statement, the reporting period for each section of the IAS is printed at the top of each section. The form also tells you whether or not you need to complete a particular section. It is important to realise that you wont necessarily be reporting on all your tax liabilities at the same time. For example, if you report your PAYG Withholdings, PAYG instalment and Fringe Benefits Tax quarterly, you will receive an activity statement at the end of each quarter. However, if your PAYG Withholdings are more than $25,000 (but less than $1 million), you will receive an activity statement at the end of each month to report your PAYG Withholdings. Every third month you will be required to also report your Fringe Benefits Tax instalment, your PAYG instalment and your deferred company or superannuation fund instalment.
How often do I have to report PAYG Withholdings?

Description How often you lodge an activity statement Monthly
Annual withholding obligations $25,000 or less (You can choose to lodge monthly) Annual withholding obligations of more than $25,000, but not more than $1 million *
Quarterly
* If you withhold more than $1 million a year, you pay your withholding liability approximately a week after you withhold. See the Guide to Pay As You Go for business for payment dates.
How often do I have to report PAYG Instalments?

Quarterly. However, if you are not registered or required to be registered for GST, and your most recent notional tax as notified by the ATO is less than $8,000, you can opt to pay your PAYG instalment annually.
How often do I have to report FBT Instalments?

Quarterly. If your FBT liability for the previous year was less than $3,000, you are not required to pay quarterly instalments.
100
Cash and Accruals accounting methods

Accruals (Non-cash) accounting records expenses when you have a legal obligation to pay, and income when you have a legal right to claim the payment. This is usually when you receive an invoice, or the goods or services, whichever comes first. Cash accounting records expenses when you physically pay your supplier, and income when you physically receive the payment.
GST
The GST legislation allows businesses with a turnover of less than $1 million per annum to account for GST on the Cash basis as opposed to the Accruals basis.
PAYG Withholding
PAYG Withholdings is always reported on a Cash basis.
PAYG Instalments
You can report your PAYG Instalments on either the Cash or Accruals basis.
101
Recording PAYG Withholdings using the Write Cheques window

If you use the Write Cheques window in MYOB Accounting to handle employee paycheques, you can use the method outlined below to record your employees PAYG withholdings.
Step 1 Create a tax code for the PAYG amount withheld

1 2 From the Setup menu, select Tax Code List. Create a new tax code. Enter PAY in the Code field, and PAYG Withholdings in the Description field. Select the Tax Type as Voluntary Withholdings, and set the rate to 99%. Select the PAYG Withholdings liability account for both the Withholding Credits and Withholding Payable fields.
Step 2 Enter the paycheque

1 2 3 4 5 In the Write Cheques window, select the tax exclusive option (by leaving the Tax Inclusive checkbox clear). Choose the employee you are paying and enter the cheque number and date. Leave the Amount field blank. Use the allocation account for Wages & Salaries and enter the gross wage amount. Type the PAY tax code in the Tax column.
102
To enter the PAYG withholding amount, click on the Tax zoom arrow. This will display the Tax Information window. Type over the amount appearing in the Tax column and enter the correct tax amount as a negative value.
Click in the Amount field. The correct Net Pay will be displayed.
Record the cheque.
Step 3 Link the salary and PAYG withheld to BASlink

1 2 In BASlink, go to the PAYG Withholding section of your BAS or IAS. To link the gross wage to W1 Total Salary and Wages click on the Setup button for the W1 field and place a cross next to the PAY tax code.
To link the gross wage to W2 Amounts Withheld from Salary and Wages, click on the Setup button for the W2 field and place a cross next to the PAY tax code.
103
The correct amounts will then appear in fields W1 and W2.
104
Transactions that include both Income and Expense

Some businesses record transactions that include both Income (4-xxxx) and Expenses (6-xxxx) in the one transaction. For example, a farmer may send produce to market, and then receive a customer payment equal to the gross income from their produce less certain charges for freight or commission. In this case, the farmer would usually create a Sales invoice and include items or accounts with negative amounts reflecting the expenses that have been deducted from the sale amount. This results in a net sales invoice equal to the payment received. An example of negative expense accounts being used in the Sales window is shown below.
Some businesses also include income and expenses in the one transaction if they usually enter daily sales using the Make a Deposit window and deduct an amount for the daily expenses. If you use the GST tax code for the negative expenses, then these expenses will be reported on the BAS under sales rather than under purchases. To make sure that your expenses are being reported correctly on your Business Activity Statement, you need to create a new tax code and allocate this tax code to your negative expenses. To achieve this, you will need to create the following tax code: NEG GST on negative transaction lines, set to a tax rate of 10% with the tax type as Goods & Services Tax.
How to use the new tax code

When you use an expense account in the Make a Deposit or Sales windows (usually with a negative amount), use the NEG tax code for those line items. For example, the farmer mentioned earlier would now need to enter the same transaction as shown below.
105
Transactions that include both Income and Expense
When linking your purchases to BASlink, you need to link the NEG tax code to the G11 field (Other Acquisitions) so that your negative expenses will be reported accurately on your BAS.
How to link the tax code in BASlink

When completing the Calculation Sheet of the BAS, click on the Setup button for the G11 field and place a cross next to the NEG tax code. Note that the letter S will be displayed in brackets (S) next to the tax code to indicate that this tax code was used in a sale.
Click OK. The correct amount will appear in the G11 field.
106
Handling the Simplified Accounting Method

Some retailers which deal with a range of GST-free, taxable and mixed sales who do not have an adequate point of sale system and an annual turnover of less than $1 million ($2 million in the 1st year), can use one of the ATOs simplified accounting methods. Three simplified accounting methods have being introduced which relate to trading stock only. Businesses will still need to separately account for other sales such as the sale of capital equipment, and other purchases such as rent, phone and other operating expenses. The methods are:
1. Business norms method

This method allows you to apply standard percentages to sales and purchases to estimate your GST-free sales and purchases.
2. Snapshot method
This method allows you to take a snapshot of your purchases and sales to estimate GST-free purchases and sales.
3. Stock purchases method

The stock purchases method allows you to take a snapshot of just purchases to estimate the percentage of GST-free purchases and sales. According to the ATO, the kinds of businesses that are likely to use the simplified accounting methods include: Convenience stores Milkbars Grocers and supermarkets Bakeries and hot bread shops Cake shops Sandwich bars Delicatessens Takeaway outlets Fresh fish retailers who sell cooked fish Fish and chip shops (with fresh fish sales) Butchers with some taxable sales
Where Business norms have been developed for:

You should contact your accountant if you believe your business can benefit from one of these simplified methods.
Hot bread shops Convenience stores that prepare takeaway food but do not sell fuel or alcohol, and Convenience stores that do not prepare takeaway food and do not sell fuel or alcohol.
107
Handling the Simplified Accounting Method
How to handle the Simplified Accounting Method

To track the GST Received and Paid in your data file using the Simplified Accounting method, you need to set up tax codes to handle the sales and purchases of stock. To set up your data file to handle the Simplified Accounting Method: 1 Go to the Company Information window, and click the BAS Info button. Select the I Use the Simplified Accounting Method checkbox. Enter the percentage of GSTfree sales and purchases you have calculated using the ATOs guidelines. Set up two new tax codes (go to the Setup menu and select the Tax Code List): SAS - Simplified Accounting (Sales) SAP - Simplified Accounting (Purchases) These tax codes should be Goods & Services Tax types, and should be linked to the GST Received and GST Payable accounts. To calculate the tax rates of these codes, you can use the Simplified Accounting Calculator located in the Resources section of your MYOB Accounting Installation CD, or use the following formulas: SAS% = r(1 - F)/(1 + Fr) where r = GST Rate and F = the percentage of your sales that are GST-free. SAP% = r(1 - F)/(1 + Fr) where r = GST Rate and F = the percentage of your purchases that are GST-free. 3 Set up each stock item that you buy or sell with these new tax codes. To do this, go to the Inventory command centre and click the Items List button. Click the zoom arrow of a stock item. Enter these new tax codes in the Buying Info tab (if you buy the item) and Selling Info tab (if you sell the item). Repeat this for the other stock items in the Items List. Note: The Simplified Accounting method can only be used for stock items, and should not be used in any service items you have created. Other service items should still be linked to the GST or FRE tax codes. When entering sales or purchases of stock, the appropriate Simplified Accounting tax code will automatically be shown. Remember that the Tax Inclusive checkbox should be selected when entering transactions that use the Simplified Accounting method. When using BASlink, you will need to link the SAS tax code to G1 and the SAP tax code to G11. See Record your total sales and income on page 48 and Other Acquisitions on page 54 for information on setting up these BAS fields. The tax amount that is calculated for these tax codes will be based on the Tax Inclusive value of the sales or purchases and the percentage of GST-free sales or purchases entered in the BAS Information window. Note If you vary the percentage of GST-free Sales or Purchases in the BAS Information window, remember that you will need to edit the SAS and SAP tax code rates. To do this, use the Simplified Accounting Calculator located in the Resources section of the MYOB Accounting Installation CD, or use the formulas shown in step 2.
108
Frequently Asked Questions

What is the BAS?
The BAS is a GST return. It also allows businesses to report their obligations for: Luxury Car Tax, Wine Equalisation Tax, Pay As You Go (PAYG) withholding and instalments, and Fringe Benefits Tax (FBT) instalments. The BAS will also allow businesses registered for GST to claim a special credit for wholesale sales tax paid on eligible stock on hand at 1/7/2000. This special credit must be claimed on any one activity statement lodged for a tax period that ends before 7 January 2001.
What is the IAS?

The IAS is the form that businesses that are not registered for GST, and individual non-business taxpayers with investment income, must lodge to settle their Pay As You Go (PAYG) taxes and FBT. The IAS is similar to the BAS, but it does not contain fields relating to GST, Luxury Car Tax or the Wine Equalisation tax.
What if I make an honest mistake on my activity statement?

You are required by law to fill in your activity statement correctly. The law imposes penalties if you understate your tax liability or over-claim a credit. The Commissioner understands that taxpayers will need to come to terms with The New Tax System. If you make a genuine mistake and you voluntarily tell the ATO about it, any penalties that apply will be remitted. However, you will have to pay interest on any understated tax or over-claimed credit. (See page 6, Business Activity Statement Instructions or page 5, Instalment Activity Statement Instructions.)
Can I get an extension to lodge my activity statement?

You may get an extension to lodge your BAS or IAS but only in exceptional circumstances. (See page 134, Business Activity Statement Instructions or page 47, Instalment Activity Statement Instructions.)
Who can prepare the activity statement for my business?

The BAS or IAS can be prepared by anybody who is able to do it. However, you should remember that you are ultimately responsible for its accuracy and completeness.
Who can charge fees for the preparation of the activity statement?
Under the current law only registered tax agents can charge for preparing a BAS or IAS. This may change in the future. (See page 3, Business Activity Statement Instructions or page 3, Instalment Activity Statement Instructions.)
109
Frequently Asked Questions
Can I claim fees paid to that person as a tax deduction?

The cost involved in preparation of the BAS is tax deductible.
How do businesses lodge their BAS or IAS?

Businesses not using the services of a tax agent will be able to lodge their BAS over the Internet. The IAS cannot be lodged over the Internet. Business using the services of a tax agent can have their BAS or IAS lodged via the Electronic Lodgement Service (ELS). Otherwise, businesses can lodge their BAS or IAS through the mail.
How do businesses make payments?

Electronic payments may be made using the existing facilities (i.e. Direct Credit, Direct Debit), or through new BPAY arrangements. Other payments can be made via mail or at Australia Post. All payments are required within 21 days following the end of the reporting period. Businesses, however, may make a voluntary payment at any time, which will be deducted from their net liability.
How do I work out my instalment income at T1?

Instalment income at T1 is, as a general rule, the gross ordinary income derived in the instalment period that is assessable income for that income year. Some examples of ordinary income earned from your business and investment activities can be found on page 115 of the BAS Instructions or page 19 of the IAS Instructions. Do not include in your gross ordinary income the GST, WET or LCT you charge your customers, clients or tenants. There are specific instructions for calculating instalment income for partners and beneficiaries of trusts. (See pages 116 & 117 of the BAS Instructions or pages 20 & 21 of the IAS Instructions.)
How do I work out the Commissioner's Instalment rate at T2?

The ATO will work out your instalment rate based on your last assessment for your last income tax return that has been lodged. If this is your first PAYG instalment for the income year, the instalment rate will be calculated by the Commissioner and pre-printed at T2. If this is not your first PAYG Instalment for the income year, the rate pre-printed at T2 will either be the rate calculated by the commissioner or the varied rate you have notified on a previous activity statement for the income year. (See pages 117-118 of the BAS Instructions or pages 21-22 of the IAS Instructions.)
Can I change my instalment rate? How?

The rate at T2 can be varied, if you believe that the rate pre-printed will not adequately reflect your expected tax liability for the year. To make a variation you write the varied rate in T3.
110
You must tell the ATO at T4 why you have decided to vary your instalment rate. There is a list of codes available indicating reasons for the variation on page 119 of the BAS Instructions or page 23 of the IAS Instructions. Your varied rate will not carry over to the next income year. (See pages 118-119 of the BAS Instructions or page 23 of the IAS Instructions.)
In BASlink, how can I save the values of my current BAS/IAS so that I can view them at a later date?
In BASlink, go to the File menu and select Save BAS data. This will save the current periods activity statement values to a .bak file and you can review it at a later date (see Viewing a previous activity statement below). You can save the file with the default name (the month and year), or override it if you have more than one business completing the activity statement that month.
Viewing a previous activity statement

In BASlink, go to the File menu and select the Open BAS data command.
Ive clicked the Save Setup & Exit button where did BASlink save the file to?
When you click the Save Setup & Exit button, the BASlink template for this business is automatically saved with the extension .bas or .ias in the BASlink\Setup folder. You can view this file in BASlink, by going to the File menu, highlighting Setup in the menu and selecting Open.
111
Getting Help
Getting Help
Key websites
ATOs tax reform website
www.taxreform.ato.gov.au This the key site for general GST and tax reform information for business. You are able to view and download information on specific GST legislation and industry guides. The site dedicates sections to individuals, businesses and tax practitioners.
MYOBs website for GST

www.myob.com.au/gst Visit this website for the latest information about MYOB accounting software, GST and the BAS. This includes support notes on current BAS and GST issues our users have recently encountered using MYOB accounting software.
MYOBs website for Support

www.myob.com.au/support Support Notes on everything from the End of Year process to upgrading your data file. If you are experiencing any problem with MYOB Accounting, its well worth checking out the Support Notes here.
MYOBs website for personalised assistance

www.myob.com.au/support/ccmembers If you are looking for local, personalised assistance and advice beyond that which you find in the learning tools that are provided, or from MYOBs telephone support services, you should consider beginning a partnership with an MYOB Certified Consultant in your area. They will be able to help you through the GST, the End of Financial Year transition, and the BAS.
Other useful websites

ATO Assist
www.ato.gov.au/
Parliament of Australia
www.aph.gov.au/
Review of Business Taxation

www.rbt.treasury.gov.au/
Australian Securities and Investments Commission

www.asic.gov.au/
Certified Practising Accountants

www.cpaonline.com.au
Institute of Chartered Accountants

www.icaa.org.au
112
User Guide Errata

The following errata were found in the MYOB Accounting User Guide:
Tax Code Setup Table, pg 44

The following tax codes are shown incorrectly: GNR should have a rate of 0% and ND No Default, should be named N-T No Tax
Cost of Sales definition, Appendix B, pg 461

The last sentence of this definition is incorrect. You may need to use Cost of Sales accounts if you use Inventory items.
Starting the Tutorial, pg17

This section explains how to start the tutorial data file. The screenshots in this section are incorrect. They show the Windows Explorer window and the Mac OS Finder window, when they should be the standard windows that appears when you click the Open your MYOB data file button from the introductory screen. Step 2 in this section is only applicable if you chose not to install the tutorial on installation. To view the Tutorial PDF, you will need to select it from the Start menu in Windows, for example, if you are using MYOB Accounting, you would select the Start button > Programs > MYOB Accounting > Getting Started Tutorial. On the Mac, you will need to open the folder where you have stored your software, and open the Tutorial folder to select the tutorial PDF.
Create a Pending Purchase, pg 227

The second paragraph incorrectly states that you should set up your deposits account in the Receivable Accounts window. It should read Payable Accounts.
113
User Guide Errata
114

MYOB Accounting

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MYOB Accounting

Uploaded by

Copyright:

Available Formats

Version 10.

Copyright MYOB Technology Pty Ltd 2000. All rights reserved.

MYOB Australia Pty Ltd

Internet address: www.myob.com.au

Melbourne Phone 03 9222 9777

General Fax 03 9222 9888 Support Fax 03 9222 9899

MYOB Accounting Addendum

Completing your activity statement with BASlink .........................................................13

User Guide Errata ..........................................................................................................113 Index .............................................................................................................................115

MYOB Accounting Addendum

Whats new in this release?

Whats new in this release?

Tax Codes in the General Journal Entry window

No ABN/TFN tax type

MYOB Accounting Addendum

How to set up a No ABN/TFN tax code

Whats new in this release?

Tax File Number in the Company Information window

Tax Code selection in the Bank Entry window

Enter the tax code that is applicable to the Bank Entry.

MYOB Accounting Addendum

RetailManager 4.3 required

How to import RetailManager transactions

Whats new in this release?

Importing and Exporting enhancements

MYOB Accounting Addendum

E-mail address in the Card File

Default settings for the Tax Inclusive checkbox

New fields in MYOB Accounting forms

Whats new in this release?

MYOB Accounting Addendum

Completing your activity statement with BASlink

Introduction to the Business Activity Statement

Introduction to the Business Activity Statement

MYOB Accounting Addendum

The Business Activity Statement

Introduction to the Business Activity Statement

MYOB Accounting Addendum

Introduction to the Instalment Activity Statement

Introduction to the Instalment Activity Statement

The Instalment Activity Statement

MYOB Accounting Addendum

Preparing to complete your activity statement

Preparing to complete your activity statement

MYOB Accounting Addendum

Step 1 Review your tax codes

View your tax codes

What tax codes do you need?

Preparing to complete your activity statement

If you have upgraded from MYOB FirstAccounts 3.5

Suggested tax codes in MYOB Accounting

MYOB Accounting Addendum

Additional tax codes you may find useful

Preparing to complete your activity statement

MYOB Accounting Addendum

If youre unsure which tax code to use...

Preparing to complete your activity statement

MYOB Accounting Addendum

Sample accounts and tax codes

N-T GCA N-T GCA N-T

GCA N-T GCA

Preparing to complete your activity statement

N-T N-T N-T

MYOB Accounting Addendum