6.5.1 Income: Taxation Issues – Accounting for GST Received

Occasionally, a Fund may receive income that includes GST.

If an income receipt includes GST, enter the income in the usual way – entering the total amount received – then account for the GST via a Journal Entry.

The Income allocated to the Income account should be reduced by debiting the GST amount, and the GST amount should be credited to GST Collected.


A tenant in a commercial property (Unit 1/24 Beach St) pays monthly rent of $2200, including $200 GST.

Enter the income receipt in the usual manner, entering the amount of $2200 as the amount received.  Your accounting records will show a credit of $2200 to Account 4-1300 Gross Rent and other Leasing and Hiring Income.

Next, make a JOURNAL entry as follows:

Income - reduce income for GST included


Check that debits and credits are equal and click ADD JOURNAL ENTRY to save.

Income from rent shown in Account 4-1300 will be reduced by $200 to $2000.

The GST Collected account 2-1010 will now show $200.

When you complete your end of period BAS return, you will see this amount in GST collected and be reminded to include that amount in your BAS return as an amount payable to the ATO.


Software updates are planned to automate handling of GST.  The above procedure should be used in the interim, pending implementation of improved automation.







about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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