Three special fields must be set for each category to ensure that GST processing occurs smoothly.

 

GST Status:

 

This field is used to tell MISTRO how each category should be handled for GST purposes. The field can take three values:

 

 

 

If the GST Status field is left blank, or has the “Taxable” option set, MISTRO will know that GST applies to all transactions allocated to this category. This will be most items in your list with the exclusion of wages, Finance 5 payments, and dividends. You do not need to set the field to “Taxable” for all your existing categories that will attract GST. MISTRO will interpret a blank value as having GST apply.

 

Any category that does not attract GST, should have the GST Status field set to “Free of GST”. An example would be the interest you pay on your overdraft, or some of your rates. Each of these categories should have their GST Status field edited and set to “Free of GST”. This can be done by selecting the value in the Category list, or by using the edit screen shown above. You MUST consult with your accountant to determine which of your categories are Free from GST, and which should include a personal use component.

 

A third special value identifies transactions that attract GST, but that are related to generating input taxed income. On farms, this will commonly be the cost of repairing houses that are rented out. GST is not charged on the rental, and so the GST on costs associated with repairing the rental house cannot be claimed. You need a category to record expenses incurred in the maintenance of rental houses, and the GST Status should be set to “Input taxed”. 

 

BAS Class:

 

The BAS Class field is used to identify different categories that are important in the preparation of the Business Activity Statement (BAS). The field can take five values.

 

 

The BAS requires you to identify the amount of money spent each quarter on capital items at G10. You need to set the BAS Class field to “Capital expense (G10)” for all the categories on your system that reflect capital improvements. Factory shares are currently not included in this category, but check with your accountant if factory shares should be included in item G10 on your BAS.

 

The BAS is also used to complete Group Tax obligations when you deduct tax from the wages of your employees. The BAS class is used to identify the categories that relate to wages. These will be set to “Gross wages (W1)” or “Tax withheld (W2)”. Using MISTRO to record your wages is discussed in further detail in a later section. A further category is used to store any payments where you have withheld 48.5% withholding tax that needs to be declared at W4 on the BAS.

 

For all other categories, you should leave the BAS Class blank or set the field to “Standard”.

 

% Personal Use:

 

The final field added to the category file, specifies the proportion of expenditure that is devoted to personal use. For example, you and your accountant might decide that 40% of your vehicle expenses are tax deductible and attributable to the business. In this case, you should set the personal use field for the Vehicle category to 60%.

 

You must consult with your accountant to be sure you set up your categories correctly before you start processing GST transactions.