Note: In March 2018 QuickBooks will start rolling out a new GST experience. This will happen gradually over a period of time. If you can see View reports, you are in the classic experience or if you can see Run Reports, you are on the new experience. Please follow the relevant steps below based on the GST experience you are in
GST centre settings are accessible in the current experience by clicking Edit GST or Add Tax in the upper right hand corner from within the GST centre dashboard.
Most of these settings default to the most common amongst small businesses, but for GST method and GST Codes great take care should be taken NOT to change those settings if any BAS have been lodged in QBO without understanding the impact first.
For more information about GST method setting impact please consult Cash vs. accrual accounting and its effect on GST.
The GST rates screen shows a list of all tax codes available for the GST agency and provides the ability to inactivate custom tax rates or add new rates.
GST Settings in the updated Tax Centre experience for Australia are located in the upper right-hand corner of the GST Centre, and include:
The Tax Settings menu has been reorganised to contain and reflect the 4 major tax types reportable through activity statements to the ATO: GST, PAYG-W (Payroll), PAYG-I (Income tax), and Other Taxes.
Existing QuickBooks customers using detailed GST coding can switch to Simpler GST by changing their setting, which will update all of their default GST tax codes across QuickBooks (except for recurring transactions) automagically. If you wish to have your GST bookkeeping method switched from Simpler to Detailed, please contact Customer Success to have a member of our team make the switch on your behalf.
For more information about Simpler BAS and GST bookkeeping, please see Simpler GST FAQ
For more information about choosing an accounting method, please consult with a bookkeeper or accounting professional.
For more information about GST method setting impact on BAS calculations please see Cash vs. accrual accounting and its effect on GST.
Small businesses with employees report payroll withholdings (also called PAYG-W) to the ATO based on the amount of wages paid during the financial year, and ticking this setting enables payroll reporting inside the GST centre. This will also create a system generated PAYG withholdings payable liabilities account.
Turning on payroll reporting also enables the BAS-W1 and BAS-W2 tax codes, whether facilitating auto-entry from KeyPay or manually inputting payroll related expenses.
Small businesses can be required by the ATO to prepay income tax instalments throughout the year, and ticking this setting enables income tax instalment reporting inside the GST centre. This will also create a system generated PAYG Instalment liabilities account.
For more information about PAYG Instalments please visit the ATO website or consult with a bookkeeper or accounting professional.
There are four other types of tax values reportable on BAS or IAS, including Fringe Benefits Tax, Luxury Car Tax, Fuel Tax Credit, and Wine Equalisation Tax. The amounts for these tax types are not calculated within QuickBooks at this time, but as they are reportable on the BAS or IAS, these settings control input for recording on IAS and/or BAS when required by a small business.
For more information about these tax liabilities please visit the ATO website.
The GST rates menu will show all GST codes available within QuickBooks, and enables users to deactivate custom GST tax codes created from a data migration that are no longer used. In the Action column users can disable tax rates from displaying within new transactions in QuickBooks (new feature!). Disabling a tax rate in this screen will only prevent rates from showing in the GST drop down, any existing transactions using that GST code will not be impacted.
The only new tax rate that can be created in our updated tax centre is a group rate, which enables users to combine together existing rates that have been either been created or used in the past to calculate on a single line item in a transaction.
With the numerous updates to the GST centre in QuickBooks, the system generated ATO tax authority is configured to support the majority of GST and BAS calculations required by Australian small businesses, and to keep this experience consistent we will no longer be support custom tax rates and separate tax agencies to be created for tracking other tax liabilities.
We natively support the VAST majority of small business compliance requirements in Australia with this update, but if we introduce support for custom tax code creation and/or custom tax agencies in the future we will let our customers know.