The Goods and Services Tax configuration within Exacc controls how your business collects, tracks, and reports the 10% consumption tax applicable to most goods and services in Australia, ensuring compliance with Australian Taxation Office requirements whilst maintaining accurate financial records. Proper GST setup is fundamental to Business Activity Statement preparation, tax invoice generation, input tax credit claims, and avoiding costly errors in tax reporting that could trigger ATO audits or penalties.
Exacc's GST management system provides comprehensive tax code libraries covering standard scenarios including GST on Income for taxable sales at 10%, GST on Expenses for claimable purchase credits, GST-free codes for zero-rated supplies like basic food and health services, Input Taxed codes for residential rent and financial services, and No GST codes for transactions outside the tax system such as wages, loan interest, and private expenses. Registration status configuration determines whether your business charges and claims GST based on turnover thresholds of $75,000 for standard businesses or $150,000 for non-profit organisations.
The accounting method selection between cash and accrual basis fundamentally affects GST timing, with cash accounting reporting GST when payments are received or made providing cash flow benefits for eligible businesses under $10 million turnover, whilst accrual accounting reports GST when invoices are issued or received regardless of payment timing, required for larger businesses and providing more accurate profit measurement. Default tax code configuration on Chart of Accounts streamlines data entry by auto-applying appropriate GST treatment based on transaction account selection, whilst BAS reporting period settings align with ATO requirements for monthly, quarterly, or annual lodgement schedules.
Want to learn how to properly configure and understand GST settings for compliance? Follow our guide below for a detailed explanation of GST management in Exacc.
Configure GST settings for accurate tax collection, reporting, and BAS compliance
Your GST and tax settings are now properly configured - registration status is correct, tax codes are understood and applied accurately, accounting method is set appropriately, and your system is ready for compliant GST tracking and BAS preparation.