GST, BAS and activity statements

GST accounting method (cash or accruals)

The GST accounting method decides when a business reports GST and claims GST credits. Under the cash method, GST on sales is reported in the period the payment is received, and credits are claimed in the period the payment is made. Under the accruals method, they are reported and claimed in the period the invoice is issued or received, whether or not it has been paid. The cash method is available to businesses that meet the ATO's eligibility conditions, which include a turnover limit, and a business that is eligible may choose either. The method chosen affects which period a transaction falls in on the activity statement, so the bookkeeping basis and the GST basis need to agree.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.