GST tracking means keeping a running record of the GST you collect on every sale and the GST you pay on every business expense — so that at BAS time, the net figure you owe the ATO is already calculated. Done manually, this is error-prone and time-consuming. Done in Sole, it happens in the background on every transaction without any extra steps from you.
How GST Works for Sole Traders
If you’re registered for GST, here’s the basic flow:
- You charge clients 10% GST on top of your price. This GST belongs to the ATO — it’s passing through your account.
- You pay GST on your business expenses. You can claim this back as input tax credits.
- Each quarter, you remit the difference: GST collected minus GST credits = net GST payable.
The 1/11th rule: the GST in any GST-inclusive amount is always the total divided by 11. On a $110 invoice, GST is $10. Sole calculates this automatically on every transaction — you never need to do the maths manually.
Common GST Tracking Mistakes
- Claiming GST on personal expenses. Only business expenses generate input tax credits. Sole’s expense categorisation workflow prompts you to confirm business purpose.
- Claiming GST from unregistered suppliers. If your supplier isn’t registered for GST, their invoice carries no GST — even if the price looks like it does.
- Including GST-free purchases in your credit claims. Basic foods, some medical services, and exports are GST-free. Sole’s categories help flag which purchases are GST-applicable.
- Forgetting to remit quarterly. GST you collect is not income. It’s a liability. If you spend it before your BAS is due, you’ll have a shortfall. Sole’s dashboard shows your running GST balance at all times.
How Sole Auto-Tracks GST on Invoices
- Create an invoice in Sole. Toggle GST on (if you’re registered — Sole remembers your setting).
- Sole adds 10% to each taxable line item and shows the GST breakdown at the bottom of the invoice.
- Client pays. Sole records the GST component as a liability — it updates your running GST balance immediately.
- No manual entry required at any step.
How Sole Auto-Tracks GST Credits on Expenses
- Snap a receipt with Sole’s camera or upload from your photos.
- Sole reads the receipt and categorises the expense. Confirm the category and whether it’s business-related.
- If the purchase carries GST, Sole logs the input tax credit automatically. Your running GST credit balance updates in real time.
Pulling Your BAS Figures from Sole
At the end of each quarter, your BAS figures are already done:
- Open Reports → BAS Summary.
- Sole displays G1 (total sales), 1A (GST collected), 1B (GST credits), and net GST payable.
- Review the figures and enter them into the ATO Business Portal to lodge.
What used to take a sole trader 3–4 hours of spreadsheet work takes about 10 minutes — mostly just checking the numbers look right.
Frequently Asked Questions
When do I need to start charging GST?You must register for and charge GST once your annual turnover reaches or is likely to reach $75,000 (or $150,000 for non-profits). Rideshare and taxi drivers must register from their very first dollar of income. Once registered, you charge GST on all taxable sales. Sole prompts you to configure your GST status during setup.
How do I know if a purchase has GST on it?Any tax invoice from a GST-registered supplier will show the GST amount or state that the price includes GST. Basic foods, some medical and educational services, and exports are GST-free — these cannot generate input tax credits. Sole’s expense categorisation helps flag which purchases carry GST and which do not.
What is an input tax credit?An input tax credit (ITC) is the GST you paid on a business purchase that you can claim back on your BAS. It reduces the net GST you owe the ATO. For example, if you collected $1,000 in GST on sales and paid $300 in GST on business expenses, your net GST liability is $700. Sole tracks both sides automatically.
Can I claim GST on all my business expenses?You can only claim GST credits on purchases that are directly related to your business activities. Personal expenses — even if paid from your business account — cannot generate GST credits. Purchases from suppliers not registered for GST do not carry claimable GST. Sole’s expense categorisation workflow prompts you to confirm whether each expense is business-related.
What happens if I charge GST but forget to remit it?If you collected GST from clients but did not remit it via BAS, the ATO treats this as unpaid tax. Penalties and interest apply. The ATO also cross-references BAS figures against reported income in your tax return. Keeping GST in a separate account or maintaining a real-time GST balance (as Sole provides) prevents this from happening.
