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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.
Sydney (Sales office) Phone 1300 555 111 Fax 02 9770 9088
This Addendum is intended for use with MYOB Accounting 10.5 and MYOB Accounting Plus 10.5. Written in Australia. October 2000.
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
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.
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.
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.
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.
RetailManager integration
You can now import RetailManager sales, purchases, and vendors easily to both Windows and Mac versions of MYOB Accounting.
Tax Codes
Ensure that you use the same tax codes and rates both in MYOB Accounting and RetailManager.
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.
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.
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For more information, see the Importing and Exporting chapter of your MYOB Accounting User Guide.
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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.
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14
BASlink completes most fields on the Summary Sheet of the BAS from totals you have calculated on the Calculation Sheet.
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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.
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17
BASlink completes most fields on the Summary Sheet of the IAS from totals you have calculated on the Calculation Sheet.
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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.
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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.
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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.
FRE*
GNR
GST*
GW
IMP
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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
EXP*
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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
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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
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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.
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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
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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
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Account Name
Tax Code
Comment
N-T
This account is designed to record the one- off special wholesale sales tax credit available to retailers as they convert to GST.
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.
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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
ITS
Residential rental income is an input taxed supply, so use the ITS code.
LTA or ITS
GST
Sales
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.
ITS
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.
GST
Service Income
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Account Name
Tax Code
GST/FRE GST GST
Comment
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.
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
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
GST
GST
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Account Name
Tax Code
GST
Comment
Electricity
Fines/penalties
NTD
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.
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
GST
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Account Name
Tax Code
Comment
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
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.
PRI
GST FRE
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Action
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.
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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.
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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.
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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.
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.
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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.
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- 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.
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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.
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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
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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.
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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.
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.
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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.
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Step 1 2 3 4
Description
Complete the GST fields (BAS only). See page 48.
47
BASGST fields
Complete the GST fields (G1 to G20) on the Calculation Sheet.
G1
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.
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.
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G2
G3
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
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
BASlink automatically calculates the total GST-free and input taxed supplies for you, by adding the totals in fields G2, G3 and G4.
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G6
BASlink automatically calculates the total taxable supplies, by subtracting the total in G5 from G1.
G7
Adjustments
G8
BASlink automatically calculates the total taxable supplies after adjustments by adding the totals in G6 and G7 and displaying the total in G8.
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G9
G10
Capital Acquisitions
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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
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.
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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
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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
G15
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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.
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
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
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.
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G18
Adjustments
G19
G20
This field displays your total input tax credit amount for the current tax reporting period.
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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.
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.
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W1
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.
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W2
W3
61
W4
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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.
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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
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
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amount printed at T5 can be varied if there is a change in your circumstances. See page 69 for instructions on completing this section.
T1
Instalment Income
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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.
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T2
T3
67
T4
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
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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
T5
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You can either: use this amount, or specify another amount. You can enter a new amount in the T6 field.
T6
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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.
T8
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T9
T10
I choose to pay quarterly PAYG instalments on the basis of GDP-adjusted notional tax
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We strongly recommend that you consult with your accountant about reporting your FBT liability to the ATO.
F1
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F2
F3
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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
$__________
F4
75
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
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BAS/IAS field
G1 G2 G3 G4 G5 G6 EXP, FRE, ITS, GST EXP FRE ITS
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
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BAS/IAS field
G16 G17
G18
G19 G20
W1
W2
W3
W4
78
BAS/IAS field
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
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80
1A
1B
1C
Click OK, and the new total is displayed in the 1C field on the BAS form.
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1D
1E
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.
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1F
1G
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
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.
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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.
5A
5B
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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 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
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6B
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7A
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.
8A 8B
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.
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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.
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.
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Field
1A 1B 1C 1D 1E 1F
1G
2A 2B 3 4
5A
5B
6A
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Field
6B
8A 8B 9
90
Step 1 2 3 4 5 6 7
Description
Check your activity statement for errors.
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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.
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.
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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
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.
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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.
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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.
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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.
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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.
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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.
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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.
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.
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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.
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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.
Click OK. The correct amount will appear in the G11 field.
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2. Snapshot method
This method allows you to take a snapshot of your purchases and sales to estimate GST-free purchases and sales.
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.
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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.)
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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.
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.
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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.
Parliament of Australia
www.aph.gov.au/
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