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Contributing User
Fred000
Posts: 7
Registered: ‎27-02-2011
Australia
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GST FREE PURCHASES-EXPENSES (FRE, N-T or GNR) TAX CODE - DEFINITIVE ANSWERS

Hi Everyone,

 

In this case the internet and forums have totally made me unsure of what is correct. So I'm hoping I can get a definitive answer on which codes to use and hopefully your answers will help others. Could someone please confirm which GST-FREE tax codes to use for the following. .

 

I currently use NT for the following.

  • Interest (Expense) on credit cards, business loan
  • Annual credit card fees
  • Credit card interest charges
  • Bank account transaction fees
  • Overseas Purchases (ie. purchase of a mobile phone over the internet)
  • Electricity / Gas / Water (I allocate a portion of my home utility bills since I work from home)
  • Stamp Duty portion on Business or Vehicle Insurance
  • Stamp Duty portion on Vehicle Registration
  • Superannuation (To my sub-contractors)

I currently use GNR

  • Sub-contractors (They have an ABN but are not GST registered)

Also

  • I know NT is for non reportable items and that these items are not placed in G11 of BAS, but what does the tax office consider non reporatable?.
  • As with GNR and FRE they seem to mean the same thing. Whats the difference and how does MYOB treat these two codes differently?

Thankyou in advance to your answers.

 

Trusted Partner
Chuck_Mak
Posts: 47
Registered: ‎13-12-2007
Australia

Re: GST FREE PURCHASES-EXPENSES (FRE, N-T or GNR) TAX CODE - DEFINITIVE ANSWERS

Hi Fred,

 

Out of your first list I would only use N-T for superannuation and that is to everyone not just your sub-contractors.  Although I would assume your home electricity and gas would have GST so you would want to use GST there.

 

I personally only ever use FRE to record purchases without GST and that is whether the supplier is registered for GST or not.  However note that by default the GNR in MYOB is set as an Input Taxed supply and not GST Free.  They are not the same thing!   

 

This link to an ATO page regarding G14 should help you decide what the ATO wants reported http://www.ato.gov.au/businesses/content.asp?doc=/content/42132.htm&page=42&H42

 

Good luck! :smileyhappy:

 

Chuck

 

 

 

 

Abacus Bookkeeping Centre
(02) 8005 7495
Registered BAS Agent
www.AbacusBC.com.au