New zero-rated GST change 2013

Use this page to find out about the Australian zero-rated GST terminology changes we made on 25 March 2013.

  Video: Tax rate changes (1:38)

No GST and GST Exempt archived and replaced by 2 new rates

Xero has archived the No GST and GST Exempt tax rates and replaced them with 2 new tax rates:

  • BAS Excluded
  • GST Free Expenses.

We’ve also developed a new tax rate for you to use: GST Free Capital.

Tax Rates

How the new rates affect the BAS

Here is how your Business Activity Statement is impacted by these changes:

  • GST Free Capital rate appears under G10 on your statement (capital purchases).
  • The GST Free Expenses rate appears under G11 on your statement (non-capital purchases).
  • The BAS Excluded rate is excluded entirely from the BAS.
Tax RateBAS FieldGST Calculation Worksheet Field
GST Free CapitalG10G10, G14
GST Free ExpensesG11G11, G14
BAS ExcludedN/AN/A

Tax rates on transactions you’ve already approved are not changed even if they have now been archived. There is no change to how they are reported on the activity statement and GST Calculation Worksheet. Because no previous transactions are being changed, the old archived rates are still reported on the BAS in the same way.

We've made the changes for you

You don’t need to do anything because Xero has automatically applied a new tax code where No GST or GST Exempt was applied previously to:

  • Chart of accounts
  • Bank reconciliation rules
  • Repeating invoice templates.

Other areas we’ll update for you if you have an old tax rate specified with a chart of account code include:

  • Contacts
  • Inventory items
  • Draft invoices
  • Draft expense claims.

GST Free Capital has not been applied to any areas for you because it’s a brand new tax rate, for which there was no equivalent previously.

Check your chart of accounts to make sure they're defaulting to the correct new tax rates for your needs.

Xero hasn't changed the tax rates on transactions you've already approved in Xero.