What Does BAS Excluded Mean?
Goods or services that are BAS Excluded are outside of Australia’s Goods and Services Tax (GST) legislation, which means they are not subject to 10% GST. These transactions are also called “out of scope”.
Some of the most common BAS Excluded items are:
- Wages and superannuation
- Loan payments
- Stamp duty
- Gifts made to charity
- Council rates and water supply
- Private transactions
Are BAS Excluded Items Included in Activity Statements?
Any income your business receives from BAS Excluded transactions should not be included in the GST section of your BAS.
Likewise, any payments made from your business through BAS Excluded transactions should also not be included in the GST section of your BAS.
For a more complete list of BAS Excluded items, see Table 7 on this page of the ATO website.
Are Wages and Super BAS Excluded?
Yes. Wages, superannuation and all other employee payroll transactions such as bonuses and allowances are BAS Excluded because GST does not apply to them.
For your Business Activity Statements, you must ensure you do not include any of these items in the GST section.
However, if you withhold payments from your employees (PAYG Withholding tax) when you run your payroll, then you need to include certain information in the withholding tax section of your BAS and IAS returns.
To learn more about PAYG Withholding tax, check out our guide here.
What Other Products and Services Do Not Have 10% GST?
Goods and services that are classified as GST-Free or Input-Taxed also do not have 10% GST.
Because of this, BAS Excluded supplies may seem the same as GST-Free and Input-Taxed supplies.
But they are not the same, so you must treat them separately in your accounts and in your Business Activity Statements.
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