Australian BAS and Input Tax

1

According to ATO as attached Bank interest is G4 Input Taxed and not re portable,
In The Manger.io GST calculation work sheet G1 includes the amount in G4.

Just googling there seems to be debate as to where interst earned from bank deposits should be reported g3 Tax free or G4 Input taxed

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Simpler-BAS-GST-bookkeeping-guide/#Inputtaxedsales

Any advice?

2

Interest earned is an input taxed supply.

3

On My Bas work sheet , there is no G4, and as it is an input taxed supply it adds to G1 but there is nothing to show it as a GST free income in the bas statement,
Both Xero and MYOB suport (forum search) suggest setting it up as a GST free income rather than as INput taxed.

4

Interest received is an input taxed supply but it will not affect the net GST payable if you decide to treat it as GST free, provided you are within the financial acquisitions threshold - Goods and Services Tax Ruling GSTR 2003/9.