Australia Gst

Australia GST Return Preparation Skill (BAS) v2.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 -- Quick reference

Read this whole section before classifying anything.

Key BAS labels (the labels you will use most):

Simpler BAS (turnover < $10M, default since 1 July 2017): Report only G1, 1A, 1B. No need for G2-G18.

Full BAS: Report all G labels plus 1A, 1B, and PAYG/FBT labels as applicable.

GST calculation formulas:

GST = GST-inclusive price x 1/11
GST = GST-exclusive price x 10%
GST-inclusive = GST-exclusive x 1.1
GST-exclusive = GST-inclusive / 1.1

Conservative defaults -- Australian-specific:

Red flag thresholds:

Section 2 -- Required inputs and refusal catalogue

Required inputs

Minimum viable -- bank statement for the period in CSV, PDF, or pasted text. Must cover the full BAS period. Acceptable from any Australian business bank: CBA, Westpac, ANZ, NAB, Macquarie, Bendigo, Suncorp, Bank of Queensland, Up Bank, ING, Revolut AU, Wise, or any other.

Recommended -- sales invoices for the period (especially for exports and GST-free supplies), purchase invoices for any input tax credit claim above AUD $500, the client's ABN in writing (11 digits), prior period BAS.

Ideal -- complete accounting software export (Xero, MYOB, QuickBooks), tax invoice register, prior period BAS with any credit carried forward.

Refusal policy if minimum is missing -- SOFT WARN. If no bank statement is available at all, hard stop. If bank statement only without invoices, proceed but record in the reviewer brief: "This BAS was produced from bank statement alone. The reviewer must verify, before lodging, that input tax credit claims above AUD $500 are supported by valid tax invoices and that all GST-free and reverse-charge classifications match the supplier's invoice."

Australia-specific refusal catalogue

If any trigger fires, stop, output the refusal message verbatim, end the conversation. Refusal is a safety mechanism.

R-AU-1 -- Partial exemption complex. Trigger: client makes both taxable/GST-free supplies AND input taxed supplies, and the input taxed proportion is not de minimis (financial acquisitions threshold exceeded). Message: "You make both taxable and input taxed supplies. Your input tax credits must be apportioned under Division 11 (s 11-30), which requires determining the extent of creditable purpose for each acquisition. This cannot be completed without a documented apportionment methodology confirmed by a registered tax agent. Please escalate."

R-AU-2 -- GST groups. Trigger: client is part of a GST group under Division 48 or asks about group registration. Message: "GST groups under Division 48 require consolidation across the group with a representative member lodging a single BAS. Intra-group supplies are disregarded. This is out of scope for this skill. Please use a registered tax agent."

R-AU-3 -- Margin scheme. Trigger: client sells property using the margin scheme under Division 75. Message: "Margin scheme transactions under Division 75 require computing GST on the margin (sale price minus acquisition cost) and confirming eligibility based on the original acquisition. This is too fact-sensitive for this skill. Please use a registered tax agent."

R-AU-4 -- Going concern. Trigger: client sells or buys a business as a going concern under s 38-325. Message: "Going concern supplies under s 38-325 require verification that all three conditions are met (going concern, both parties registered, written agreement). Incorrect classification results in either 10% GST on the full sale price or a missed GST-free entitlement. Please use a registered tax agent to confirm eligibility before proceeding."

R-AU-5 -- Financial supply complex (financial institution). Trigger: client is a financial institution (bank, insurer, super fund) whose primary supplies are input taxed financial supplies, or client asks about Reduced Input Tax Credits (RITC). Message: "Financial institutions making predominantly input taxed supplies require specialist apportionment, RITC calculations (75%/55%), and the financial acquisitions threshold test. This is out of scope. Please use a registered tax agent specialising in financial services GST."

Section 3 -- Supplier pattern library (Australian vendors)

This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment from the table directly. Do not second-guess. Do not consult Tier 1 rules -- the table is authoritative for patterns it covers.

How to read this table. Match by case-insensitive substring on the counterparty name as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5.

3.1 Australian banks (fees input taxed -- exclude)

3.2 ATO and government (exclude entirely)

3.3 Australian utilities (taxable 10%)

3.4 Australian insurance (mixed treatment)

3.5 Australian transport (taxable 10%)

3.6 Australian food (basic food GST-free, prepared food 10%)

3.7 SaaS (reverse charge from non-resident suppliers)

These are billed from non-resident entities. For a fully creditable recipient, reverse charge does NOT apply (Australian exception -- Division 84). For a client making any input taxed supplies, reverse charge applies on the non-creditable portion.

Important note on non-resident digital supplies: Since 1 July 2017, many non-resident digital suppliers (Netflix, Spotify, Google, etc.) have registered for Australian GST and charge 10% on B2C supplies. For B2B supplies where the recipient provides an ABN, the supplier may not charge GST -- reverse charge may apply on the recipient if the acquisition is not fully creditable. Always check the actual invoice.

3.8 Payment processors (financial supply -- input taxed)

3.9 Professional services (taxable 10%)

3.10 Property (commercial vs residential)

3.11 Superannuation (not a supply -- exclude)

3.12 Payroll (exclude entirely)

Section 4 -- Worked examples

These are six fully worked classifications drawn from a hypothetical CBA NetBank bank statement of an Australian self-employed IT consultant based in Sydney. They illustrate the trickiest cases. Pattern-match against these when you encounter similar lines in any real statement.

Example 1 -- Non-resident SaaS, reverse charge not applicable (fully creditable)

Input line: 05.04.2026 ; GOOGLE ASIA PACIFIC PTE LTD ; DEBIT ; Google Workspace Business ; AUD 21.60

Reasoning: Google Asia Pacific Pte Ltd is a Singapore entity (non-resident). The client is a fully taxable IT consultant (no input taxed supplies). Under Division 84, reverse charge applies ONLY when the acquisition is NOT fully creditable. Since this client would be entitled to a full input tax credit anyway, reverse charge does NOT apply. The supply has no GST component. Treat as a purchase with no GST in the price.

Output:

Example 2 -- Local utility, standard 10%

Input line: 10.04.2026 ; TELSTRA CORP LTD ; DEBIT ; Monthly plan Apr 2026 ; AUD 99.00

Reasoning: Telstra is an Australian GST-registered entity (Section 3.3). Telecommunications are taxable at 10%. The $99.00 is GST-inclusive. GST = 99.00 / 11 = $9.00. Net = $90.00. Full input tax credit claimable for business use. If mixed personal/business use, apportion -- but default for a business-only phone line is 100% credit.

Output:

Example 3 -- Supermarket purchase (mixed GST-free and taxable)

Input line: 12.04.2026 ; WOOLWORTHS 1234 SYDNEY ; DEBIT ; Grocery purchase ; AUD 87.50

Reasoning: Woolworths sells a mix of basic food (GST-free under Division 38-A) and taxable items (prepared food, confectionery, soft drinks, household goods). Without a detailed receipt, the split is unknown. Conservative default: treat entire amount as having no GST credit (safest approach -- underclaims rather than overclaims). Flag as Tier 2 -- ask client for receipt to split GST-free and taxable items. If receipt available, split accordingly.

Output:

Example 4 -- Bank fee (input taxed financial supply)

Input line: 15.04.2026 ; CBA ACCOUNT FEE ; DEBIT ; Monthly account keeping fee ; AUD 10.00

Reasoning: CBA bank fees are a financial supply under Division 40. Financial supplies are input taxed -- no GST is charged, and no input tax credit is available. Exclude from BAS input claims entirely. Note: some bank "account-keeping fees" may technically include a taxable component if the bank issues a tax invoice showing GST -- but the default for bank charges is input taxed / excluded unless the tax invoice explicitly shows GST.

Output:

Example 5 -- Export service sale (GST-free)

Input line: 20.04.2026 ; ACME CORP NZ ; CREDIT ; Invoice AU-2026-042 IT consulting April ; AUD 8,500.00

Reasoning: Incoming payment from a New Zealand company for IT consulting services. Services provided to a non-resident for consumption outside Australia are GST-free under Division 38-E (s 38-190). No GST charged. Input tax credits on costs related to making this supply are fully claimable. Confirm: (a) recipient is outside Australia; (b) service is consumed outside Australia; (c) invoice shows no GST with a note "GST-free export -- s 38-190". On Simpler BAS, include in G1 only. On Full BAS, include in G1 and G2.

Output:

Example 6 -- Stripe transaction fee (financial supply)

Input line: 25.04.2026 ; STRIPE PAYMENTS AU ; DEBIT ; Transaction fees April ; AUD 145.20

Reasoning: Stripe payment processing fees are a financial supply (payment facilitation). Financial supplies are input taxed under Division 40. No GST credit claimable on transaction fees. Exclude. Note: Stripe's monthly platform subscription fee (if billed separately by an Australian entity with a tax invoice showing GST) IS taxable at 10% and credit IS claimable -- but the transaction processing fees themselves are a financial supply.

Output:

Section 5 -- Tier 1 classification rules

Each rule states the legal source and the BAS label mapping. Apply silently if the data is unambiguous.

5.1 Taxable supplies (10%)

Legislation: GST Act, s 9-5 (meaning of taxable supply), s 9-70 (rate).

Default rate for any supply connected with Australia by a GST-registered entity in the course of an enterprise, unless the supply is GST-free (Division 38) or input taxed (Division 40). Australia has a single 10% rate -- no reduced rates, no multiple rate tiers.

A supply is taxable if ALL conditions are met (s 9-5):

1. Made for consideration;
2. In the course or furtherance of an enterprise;
3. Connected with the indirect tax zone (Australia);
4. Supplier is registered or required to be registered; AND
5. NOT GST-free and NOT input taxed.

Sales: G1 (and G6 derived). Purchases: G10 (capital) or G11 (non-capital). GST on sales: 1A. GST credits on purchases: 1B.

Common taxable supplies: professional services (legal, accounting, consulting), commercial rent, construction, telecommunications, general insurance premiums, software licences, motor vehicle sales, restaurant/cafe meals, domestic transport, office supplies, equipment purchases.

5.2 GST-free supplies (0%, credits retained)

Legislation: GST Act, Division 38.

GST-free supplies attract 0% GST but the supplier retains full input tax credit entitlements on related costs. This mirrors the EU concept of zero-rated supplies.

Sales: G1 and G2 (exports) or G3 (other GST-free). On Simpler BAS, include in G1 only.

Critical categories:

GST-free food rules (Subdivision 38-A) -- the detail that matters:

5.3 Input taxed supplies (no GST, no credits)

Legislation: GST Act, Division 40.

Input taxed supplies have NO GST charged and the supplier gets NO input tax credits on related costs. This mirrors the EU concept of exempt-without-credit supplies.

Sales: G4 (input taxed sales). Purchases related to input taxed supplies: G13 (no credit).

Critical distinction: GST-free and input taxed are NOT the same. GST-free suppliers retain input tax credit entitlements; input taxed suppliers do not. Confusing them produces opposite outcomes.

Residential vs commercial -- the boundary:

5.4 Out-of-scope transactions (not on BAS)

5.5 Reverse charge (Division 84)

Key Australian distinction from EU: In Australia, reverse charge on offshore supplies to registered recipients applies ONLY when the acquisition is NOT fully creditable. If the recipient would claim 100% input tax credit anyway, no reverse charge -- no revenue leakage.

When reverse charge applies:

• Output GST (self-assessed): include in 1A
• Input tax credit (if any): include in 1B
• NOT reported in G1 (total sales)
• Both sides appear on BAS

"Netflix tax" (Division 83-5, since 1 July 2017): Non-resident digital suppliers must register for GST if Australian turnover exceeds $75,000 and charge 10% on B2C supplies. For B2B where recipient provides ABN, supplier does NOT charge GST.

5.6 Input tax credit entitlement (Division 11)

A registered entity is entitled to an input tax credit if ALL conditions are met (s 11-5):

1. Acquisition is for a creditable purpose (related to taxable or GST-free supplies);
2. Supply was a taxable supply (GST in the price);
3. Entity provides consideration;
4. Entity is registered for GST; AND
5. Entity holds a valid tax invoice (or can obtain one within 4 years).

Blocked credits: No credit for acquisitions relating to input taxed supplies (s 11-15), private/domestic use (s 11-15), entertainment where FBT exempt (s 69-5), non-deductible fines/penalties (s 69-5).

Car limit: Input tax credit for a car is capped at car limit / 11. For 2024-25: $69,674 / 11 = ~$6,334 maximum credit. No outright block on cars (unlike Malta).

5.7 Tax invoices (Division 29)

No ABN withholding: If supplier does not quote ABN, payer must withhold 47% (top marginal + Medicare levy). Reported at BAS label W3. Exceptions for supplies < $75 (excl GST).

Section 6 -- Tier 2 catalogue

For each ambiguity type: pattern, why the bank statement is insufficient, conservative default, question for the client.

6.1 Vehicle costs (fuel -- business or private?)

Pattern: BP, Shell, Caltex, Ampol, 7-Eleven fuel, Viva Energy. Why insufficient: business-use proportion unknown. Unlike Malta, Australia does NOT hard-block car GST credits -- but private-use portion must be excluded. Default: 0% credit. Question: "Is this fuel for a business vehicle? What percentage is business use vs private? Do you keep a logbook?"

6.2 Home office (utilities -- 70c/hr or actual?)

Pattern: Origin Energy, AGL, Telstra on a residential address; home internet. Why insufficient: if the client works from home, a portion of home expenses may be claimable. The ATO allows either the fixed-rate method (67 cents per hour from 1 July 2022) or the actual-cost method with apportionment. For GST, the actual-cost method requires splitting the taxable portion. Default: 0% credit (cannot determine business proportion). Question: "Do you work from home? How many hours per week? Is this a dedicated business line/service or shared personal?"

6.3 Food purchases (Woolworths -- basic food GST-free or prepared?)

Pattern: Woolworths, Coles, IGA, Aldi, any supermarket. Why insufficient: a single supermarket receipt may contain GST-free basic food and taxable prepared food, confectionery, soft drinks, and non-food items. The receipt total alone cannot determine the split. Default: no credit claimed (treat as no GST in price, G14). Question: "Could you provide the receipt? I need to split GST-free food items from taxable items to claim the correct credit."

6.4 Cash withdrawals

Pattern: ATM, cash withdrawal, CBA cash, Westpac cash. Why insufficient: unknown what cash was spent on. Default: exclude as owner drawing. Question: "What was the cash used for? If business expenses, do you have receipts?"

6.5 Insurance (some taxable, some input taxed -- which policy?)

Pattern: insurance premium, policy payment, Suncorp, QBE, AMP. Why insufficient: general insurance (business, motor, property) is taxable at 10% with GST credit. Life insurance and private health insurance are input taxed (no credit). The bank statement description rarely identifies the policy type. Default: input taxed, no credit (conservative). Question: "Is this general insurance (business/property/vehicle), life insurance, or health insurance? General insurance has GST; life and health do not."

6.6 Mixed personal/business subscriptions

Pattern: Netflix, Spotify, Apple, Amazon Prime, gym membership. Why insufficient: if subscription is partly personal and partly business, only the business portion is creditable. Most streaming/entertainment subscriptions are purely personal. Default: exclude as private. Question: "Is this a business expense or personal? If mixed, what percentage is business use?"

6.7 Airbnb income (short-stay accommodation -- residential or commercial?)

Pattern: Airbnb payouts, Stayz payouts, short-term rental income. Why insufficient: short-stay accommodation (typically under 3 months) is treated as commercial accommodation, taxable at 10%. Long-term residential rental (over 3 months) is input taxed. The bank statement shows only an Airbnb payout amount. Also: if total Airbnb turnover is below $75,000, the host may not be required to register for GST. Default: [T2] flag for reviewer. Question: "Is this short-term rental (under 3 months per guest)? What is your total annual Airbnb income? Are you GST-registered for this activity?"

Section 7 -- Excel working paper template (Australia-specific)

Sheet "Transactions"

Columns:

• A: Date
• B: Counterparty (as per bank statement)
• C: Type (DEBIT/CREDIT)
• D: Description
• E: Gross amount (AUD, from bank statement -- blue font, hardcoded)
• F: Net amount (formula: if taxable, = E / 1.1; if GST-free or excluded, = E)
• G: GST amount (formula: if taxable, = E / 11; if GST-free or excluded, = 0)
• H: BAS label code (G1, G2, G3, G4, G10, G11, G13, G14, G15, or blank for excluded)
• I: Default applied? (Y/N)
• J: Question for client (text, or blank)
• K: Excluded? (text reason, or blank)
• L: Notes

Sheet "BAS Summary" (Full BAS)

One row per BAS label. Column A is the label, column B is the description, column C is the value computed via formula.

Sales:
| G1  | Total sales                    | =SUMIFS(Transactions!F:F, Transactions!C:C, "CREDIT") |
| G2  | Export sales                   | =SUMIFS(Transactions!F:F, Transactions!H:H, "G2") |
| G3  | Other GST-free sales           | =SUMIFS(Transactions!F:F, Transactions!H:H, "G3") |
| G4  | Input taxed sales              | =SUMIFS(Transactions!F:F, Transactions!H:H, "G4") |
| G5  | GST-free + input taxed (derived)| =G2+G3+G4 |
| G6  | Taxable sales (derived)        | =G1-G5 |

Purchases:
| G10 | Capital purchases              | =SUMIFS(Transactions!E:E, Transactions!H:H, "G10") |
| G11 | Non-capital purchases          | =SUMIFS(Transactions!E:E, Transactions!H:H, "G11") |
| G12 | Total purchases (derived)      | =G10+G11 |
| G13 | Purchases for input taxed      | =SUMIFS(Transactions!E:E, Transactions!H:H, "G13") |
| G14 | Purchases with no GST          | =SUMIFS(Transactions!E:E, Transactions!H:H, "G14") |
| G15 | Private use purchases          | =SUMIFS(Transactions!E:E, Transactions!H:H, "G15") |
| G16 | Non-creditable (derived)      

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