BAS labels explained: G1, 1A, 1B and the rest
The short answer
On a BAS (business activity statement), G1 is your total sales, 1A is the GST (goods and services tax) in those sales, and 1B is the GST in what you bought for the business. Simpler BAS, the default for small businesses, asks for only those three.
On this page
What goes at G1, and does it include GST?
G1 is your total sales for the period: taxable sales, GST-free sales (sold with no GST in the price, such as basic food) and input-taxed sales (sold with no GST, such as residential rent, and with no claim for the GST on the costs behind them) all go in.
Whether G1 includes GST depends on your method. On the calculation worksheet method it always does. On the accounts method or Simpler BAS you choose, and mark your choice on the form.
If there were no sales in the period, the ATO asks for 0 at G1.
Some money coming in does not go at G1 at all, including:
- wages you receive
- dividends
- gifts and donations
- private sales that have nothing to do with the business, such as selling your home or its furniture
- business loans
- tax refunds.
What goes at 1A and 1B?
1A is the GST included in the price of your taxable sales. 1B is your GST credits (the GST in the price of business purchases that you claim back), not the total of those purchases.
When an invoice says only that the price includes GST, the ATO says the GST amount is the price divided by 11.
On a paper statement, amounts go in as whole dollars, with the cents left off.
So what do I end up paying?
For GST, the amount at 1A less the GST credits at 1B. The ATO says your GST credits are offset against the GST you have to pay, and if the credits are bigger, you are entitled to a refund.
How do I know if I am on Simpler BAS?
The ATO sets your reporting method from the GST turnover (total business income, minus the GST in it) in its records, which you gave it when you registered or since. On Simpler BAS, your BAS asks for only G1, 1A and 1B.
Simpler BAS is the default when GST turnover is under $10 million. At $10 million or more, the full reporting method adds G2, G3, G10 and G11.
Some businesses under $10 million can choose full reporting instead: those whose aggregated turnover is over $10 million (a different measure from GST turnover), and those whose main activity is making input-taxed sales.
If your turnover has changed, the ATO says to phone it on 13 28 66 to update it, and it then moves you to the matching method.
What are G2 and G3?
G2 is export sales and G3 is other GST-free sales. Both amounts are also included in G1.
- G2 is the free-on-board value of goods exported GST-free. Freight and insurance for the export go at G3, not G2.
- G3 is GST-free sales other than exports, such as basic food, most health and education services, and eligible childcare. Hot takeaway food and food eaten on the premises do not go at G3.
On Simpler BAS, neither label is needed.
Do I have to fill in G10 and G11?
Not on Simpler BAS, which is the default for businesses with GST turnover under $10 million and needs only G1, 1A and 1B.
On the full reporting method, G10 is capital purchases and G11 is every other business purchase in the period.
What counts as a capital purchase?
Business assets such as machinery, cash registers, computers and cars, plus land and buildings. Trading stock, running costs such as stationery and repairs, and equipment rentals or leases are not capital purchases.
G11 then takes all the other business purchases for the period, such as stock for resale, services, and business insurance premiums less stamp duty.
There is a $1,000 shortcut, and it has conditions. It is for a business that does not record capital and other purchases separately and expects GST turnover under $1 million. That business puts capital items costing over $1,000 at G10, and may put any item costing $1,000 or less at G11. A business that already records them separately uses its own split.
What are W1 and W2?
They are for PAYG (pay as you go) withholding. W1 is the total of gross payments, such as wages, that you usually have to withhold tax from, and W2 is the total amount you withheld from them.
W1 includes payments where nothing ended up being withheld.
What is T7 on my activity statement?
T7 is the PAYG instalment amount: either the amount the ATO calculated for you, or the amount from your most recent variation.
The instalment you pay for the period goes at 5A. It is the T7 amount, or a different one if you varied it or use the instalment rate.
How Balancd helps
Balancd will work out the figures for G1, 1A and 1B, your sales, the GST you charged and the GST you paid, and show the receipts and payments behind each number. The AI will never do the maths: every total and every GST figure will be worked out by fixed rules. You will check the figures yourself and lodge (send to the ATO) your BAS.
Balancd is opening to Australian businesses in small groups.
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