When you register for GST, you need to choose an accounting basis and a filing frequency. This page explains the options and who's eligible, and there is a tool at the bottom of the page, to help you decide the best accounting basis for you.
Choosing your GST accounting basis
The accounting basis you choose determines how you account for GST collected from your sales and income, and GST you’ve paid on purchases and expenses.
You choose your accounting basis when you register for GST.
Using a 4-weekly accounting cycle
We can approve alternative dates as your taxable period end dates. There must be good commercial reasons to change the dates.
We may approve monthly or 2-monthly filing so that taxable period end dates align with a 4-weekly accounting cycle.
If you have an alternative taxable period end date approved, to determine your cut-off dates, read Prescribed GST methods for businesses using four-weekly accounting cycle.
Accounting basis |
Who's eligible |
What you need to do |
---|---|---|
Payments |
If your total sales are:
|
In your GST return for the period include:
|
Invoice |
Anyone |
In your GST return for the period include:
|
Hybrid |
Anyone. Note: This method is not commonly used by small businesses because of negative cashflow consequences. This is because you may return GST on invoiced sales before you have received payment, but you can only claim GST when you have paid for your purchases (not when invoiced). |
Use the invoice basis for your sales. Use the payments basis for your expenses. |
Choosing your GST filing frequency
You need to file regular GST returns. How often you file depends on your sales.
You choose your filing frequency when you register for GST.
Filing frequency |
Who is eligible |
Who it's suitable for |
---|---|---|
Monthly |
|
Customers likely to get regular GST refunds. |
Two-monthly |
|
Customers who find regular filing helps them keep on top of paperwork. |
Six-monthly |
|
|
Once you've chosen your filing frequency, make note of when your returns and payments are due.