Your GST Estimate is calculated using the GST you’ve:
Received: The GST included on any money-in transactions you’ve toggled GST on
Paid: The GST included on any money-out transactions you’ve toggled GST on
As you toggle GST on the transaction details of your transactions, your GST estimate will change in real-time on the Dashboard screen of your Parpera App.
We calculate your GST Estimate using the following formula:
GST Estimate = GST Received - GST Paid
If your GST Estimate is positive, then you may owe that amount to the ATO.
If your GST Estimate is negative, then the ATO may owe that amount to you.
Wondering how this works? Here’s an example real-world scenario.
Example scenario
Let’s say you’ve received $1,100 in income (nice work!) and paid $3,300 in expenses in Q4 2022.
No GST Toggle
If you haven’t toggled on GST for any of these transactions, your initial GST Estimate will be $0.
GST Received = $0 / 11 = $0
GST Paid = $0 / 11 = $0
GST Estimate = $0 = $0 - $0
The GST Estimate is $0 and it is assumed that no money that may be receivable from or payable to the ATO.
GST toggle on for money-in transactions
If you then toggle on GST in the transactional details screen for your $1,100 money-in transaction, you’ll have an updated GST Estimate of $100 that may be payable to the ATO. This is calculated as follows:
GST Received = $1,100 / 11 = $100
GST Paid = $0 / 11 = $0
GST Estimate = $100 - $0 = $100
The GST estimate is positive and it is therefore assumed that you may owe $100 to the ATO.
GST toggle on for money-out transactions
If you then toggle on GST in the transactional details screen for your $3,300 money-out transaction, you’ll have an updated GST Estimate of $200 that may be receivable from the ATO. This is calculated as follows:
GST Received = $1,100 / 11 = $100
GST Paid = $3,300 / 11 = $300
GST Estimate = $100 - $300 = -$200
The GST estimate is negative and it is therefore assumed that the ATO may owe you $200.
Please note that the GST Estimate should be used as an estimate only and is based on a number of assumptions and inputs which include:
Your business is registered for GST
The transactions that have GST toggled on by you within the Parpera App
Your company is required to charge GST on the transactions you toggle on GST for according to the ATO
Your company is eligible to claim GST credits on transactions you toggle on GST for according to the ATO
Your business is accounting for GST on a cash basis
Your business GST reporting and payment cycle is Quarterly
Your business is using the Simple BAS reporting method
You were registered (or required to be registered) for GST since you started using the Parpera App
The GST Estimate is limited as it does NOT consider:
Other sources of GST income or expenses not captured within the Parpera App
GST accounting on an accrual basis (and it will be inaccurate if you account for GST on an accrual basis)
Any GST credits or debits from previous periods
For more information on taxes, we recommend you speak with a registered tax agent or visit the ATO website.