What the ledger has to do
GST in Australia is a transaction tax: 10 per cent on most goods and services, with GST-free supplies, input-taxed supplies, capital acquisitions and transactions that are not reportable. Registered businesses report what they collected and what they can claim, together with PAYG withholding and instalments, on the BAS monthly, quarterly or annually.
A ledger that supports this well records the right tax treatment at the line level, keeps tax postings separate from the base amount, and can rebuild every figure on the BAS from the underlying transactions.
What Dynamics 365 provides
Microsoft ships Australian localisation for GST and BAS in Dynamics 365 Business Central and in Finance & Operations. Business Central's Australian version includes BAS setup and a calculation worksheet; Finance & Operations provides Australian tax and reporting configurations. The exact features depend on the version and the country/region you deploy, so we confirm them against your release in the Design phase.
Out of the box does not mean ready. The localisation needs your tax codes mapped to your chart of accounts, your reporting frequency, and a reconciliation that your accountant accepts.
Our setup checklist
This is the order we configure and test in, so the first BAS from the new system is one you can check line by line against the old one.
Where BAS projects go wrong
Mapping tax codes to the BAS labels late, after transactions are already posted. Mixing taxable and GST-free lines on one document without a clear rule. Reconciling the GST control account only at lodgement time. Treating the first BAS as the test instead of rehearsing it in migration.
Beyond GST: PAYG and payroll
BAS also carries PAYG withholding and instalments. Payroll normally runs in a dedicated payroll system and posts to the ledger. See our page on Single Touch Payroll for how payroll data reaches Business Central and the ATO.
Frequently asked questions
Does Business Central support BAS reporting for Australia?
Microsoft provides an Australian localisation of Business Central that includes GST and BAS functionality. We configure it for your tax codes and lodgement frequency, then validate the BAS against your existing records.
Does Finance & Operations support GST and BAS?
Yes. Finance & Operations includes Australian localisation for GST and reporting. It is configured to your legal entity, tax groups and reporting needs.
Can we run cash-basis GST?
Yes, GST can be reported on a cash or accrual basis depending on your eligibility. We design posting and reporting to match the basis you use and document the reconciliation.
Will our accountant be able to review the BAS?
Yes. We design reports and drill-down so your accountant or registered tax agent can trace every BAS figure to its transactions.
Do you lodge the BAS for us?
No. We configure and validate the system. Lodgement remains with you or your registered tax agent.
General information, not tax or legal advice. Rules and thresholds change; confirm the current position with the ATO or your registered tax agent before relying on it.
Last reviewed 2026-10-11