# BAS Calculation - ACC-0004

## Working

**G1 - Total sales (GST-inclusive)**

G1 = $110,000

This is the reported figure directly. G1 on the BAS captures the total GST-inclusive sales for the period.

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**1A - GST on sales**

GST is one eleventh of the GST-inclusive amount:

1A = $110,000 / 11 = **$10,000**

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**1B - GST on purchases (input tax credits)**

1B = $66,000 / 11 = **$6,000**

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**W2 - PAYG withholding from wages**

W2 = $40,000 x 20% = **$8,000**

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**Net amount payable to the ATO**

Net = (1A - 1B) + W2
Net = ($10,000 - $6,000) + $8,000
Net = $4,000 + $8,000
Net = **$12,000**

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## Summary table

| Label | Description                        | Amount    |
|-------|------------------------------------|-----------|
| G1    | Total sales (GST-inclusive)        | $110,000  |
| 1A    | GST on sales                       | $10,000   |
| 1B    | GST on purchases (input tax credit)| $6,000    |
| W2    | PAYG withholding from wages        | $8,000    |
| **Net payable to ATO**             |           | **$12,000** |

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## Approach

The BAS amounts follow the standard ATO calculation rules:

- **G1** is taken directly from the given total GST-inclusive sales figure.
- **1A** and **1B** are derived using the "one eleventh" rule: because GST is 10% on top of the base price, the GST-inclusive price equals the base price x 1.1, meaning GST = inclusive price / 11.
- **W2** is the PAYG withholding collected from employee wages, calculated as the gross wages multiplied by the withholding rate. This amount is an employer obligation reported and remitted via the BAS.
- The **net amount payable** combines the net GST position (1A minus 1B, which is the output tax less input tax credits) with the PAYG withholding (W2). Both are amounts the business holds on behalf of the ATO and remits with the BAS.

No fuel tax credits, PAYG instalments, or other labels apply, so the formula is simply (1A - 1B) + W2 = $12,000 due to the ATO.