# BAS quarter - label amounts

*Benchmarking hypothetical, not tax advice. Figures as at FY2025-26.*

## Answer

| Label | Description | Amount (AUD) |
|-------|-------------|--------------|
| **G1** | Total sales (GST-inclusive) | **$110,000** |
| **1A** | GST on sales | **$10,000** |
| **1B** | GST on purchases | **$6,000** |
| **W2** | Amounts withheld from wages | **$8,000** |
| **Net amount payable to the ATO** | (1A - 1B) + W2 | **$12,000** |

## Working

The GST rate is 10%, so a GST-inclusive amount is 110% of the GST-exclusive
amount. The GST component is therefore one eleventh (1/11) of the
GST-inclusive figure, because 10 / 110 = 1 / 11.

- **G1** = total sales including GST = **$110,000** (reported GST-inclusive).

- **1A** (GST on sales) = 1/11 of G1
  = $110,000 / 11
  = **$10,000**.

- **1B** (GST on purchases) = 1/11 of total purchases including GST
  = $66,000 / 11
  = **$6,000**.

- **W2** (amounts withheld from wages) = PAYG withholding rate x gross wages
  = 20% x $40,000
  = 0.20 x $40,000
  = **$8,000**.

- **Net amount payable to the ATO** = (1A - 1B) + W2
  = ($10,000 - $6,000) + $8,000
  = $4,000 + $8,000
  = **$12,000**.

The net GST position is 1A - 1B = $4,000 payable (GST collected on sales
exceeds GST paid on purchases). Adding the PAYG withholding of $8,000 gives a
total of $12,000 owed to the ATO for the quarter. With no PAYG instalments,
fuel tax credits, or other amounts this quarter, nothing offsets that figure.

## Approach

This is a standard Australian quarterly BAS calculation under the labels named
in the prompt. The two GST labels (1A, 1B) are derived by taking one eleventh
of each GST-inclusive total, since a 10% GST means GST = inclusive amount / 11.
W2 is a simple PAYG withholding calculation (rate x gross wages). The net
amount payable combines the net GST (1A - 1B) with the withholding (W2), with
no other BAS amounts to adjust for this quarter. All arithmetic was checked by
hand and the divisions are exact.