Select the Simpler BAS or Full BAS reporting method

Xero provides two options for completing your activity statement. Simpler BAS is for most businesses with a GST turnover of less than $10 million. Full BAS is available for businesses that have extra activity statement reporting requirements, or use the instalments method.

The ATO has communicated to businesses if they are to adopt Simpler BAS reporting. If you’re unsure which method you should use, check with the ATO, or your accountant or bookkeeper.

Which method to use

From 1 July 2017, Simpler BAS is the default reporting method for businesses with a GST turnover of less than $10 million. The ATO has more information about Simpler BAS eligibility and GST reporting methods (ATO website). If you’re unsure of which method to use, we recommend you contact your accountant or the ATO.

Simpler BAS

The ATO doesn't support the calculation worksheet with Simpler BAS, so a worksheet isn't included when using this method in Xero. Instead, you report the actual amount of GST you've entered for your transactions. If you’re using Simpler BAS, you only need to report the following for GST:

  • G1 Total sales
  • 1A GST on sales
  • 1B GST on purchases

Full BAS

Full BAS reporting, which was previously used by all GST registered businesses, uses the calculation worksheet or accounts method. Full BAS reporting includes the same labels as Simpler BAS, plus this information:

  • G2 Export sales
  • G3 Other GST-free sales
  • G10 Capital purchases
  • G11 Non-capital purchases

Select the Simpler BAS reporting method

From August 2017, we’ll ask you to confirm your reporting method the next time you open your activity statement.

To switch to Simpler BAS if you previously selected the Full BAS reporting method:

  1. In the Settings menu, select General Settings.
  2. Under Organisation, click Financial Settings.
  3. Click Go to Simpler BAS.
  4. Under Activity Statement Reporting Method, select Simpler BAS.
  5. Click Save & continue.

Xero will ask you to choose settings for your Simpler BAS.

Select the Full BAS reporting method

From August 2017, we’ll ask you to confirm your reporting method the next time you open your activity statement. Select Full BAS or Instalments to use Full BAS reporting.

To change back to Full BAS if you've selected Simpler BAS:

  1. In the Reports menu, select All Reports.
  2. Under the Tax heading, click Activity Statement.
  3. Click Settings.
  4. Under Activity Statement Reporting Method, select Full BAS or Instalments, then click Save & continue.

Opening the activity statement now loads the Full BAS version.