The Australian Taxation Office (ATO) has introduced a new way to simplify GST reporting for small supermarkets and convenience stores.
The Simplified Accounting Method (SAM) Determination 2025, effective 9 September 2025, helps small Sydney retailers reduce compliance work while staying GST-compliant.
This update ensures that small businesses can calculate GST with less paperwork — allowing more time to focus on customers and growth.
What Is the Simplified Accounting Method?
The Simplified Accounting Method (SAM) provides an easier way for eligible small retailers to estimate their GST-free and taxable purchases.
Instead of tracking every transaction manually, retailers can apply a consistent percentage based on sales data.
This change is designed to support smaller stores that sell both GST-free food items and taxable goods, such as packaged snacks or beverages.
Who Is Eligible to Use SAM 2025?
To use the simplified method, your business must meet specific ATO criteria:
- Have an annual GST turnover of less than $2 million
- Operate mainly as a supermarket or convenience store selling a variety of food and household items
- Not primarily sell fuel
- Generate less than 5% of total sales from taxable goods that include GST-free ingredients
These conditions ensure the method is used by small, mixed retailers — not large or fuel-based businesses.
Requirements for Point-of-Sale (POS) Systems
Your point-of-sale equipment must be capable of recording and distinguishing:
- Whether a sale is GST-free or taxable
- The total value of GST-free sales during a given period
- The total value of all goods sold in the same period
Having an accurate POS system is key. It allows your business to correctly calculate the percentage of GST-free sales and apply it to your purchases.
How the Simplified Method Works
Under this approach, small supermarkets and convenience stores calculate the percentage of GST-free sales versus total sales for each tax period.
That percentage is then applied to the total value of goods purchased to estimate:
- GST-free purchases, and
- Taxable purchases eligible for input tax credits.
This method streamlines GST calculations and reduces the need for detailed tracking — making BAS preparation simpler and faster.
Why This Matters for Sydney Small Businesses
For small Sydney supermarkets and convenience stores, this update brings several key benefits:
- Easier GST and BAS reporting
- Reduced bookkeeping and compliance costs
- Fewer calculation errors
- More time to manage your business
- Greater confidence in meeting ATO requirements
With economic pressures continuing, these savings in time and effort can significantly improve efficiency and cash flow.
How Boa & Co. Chartered Accountants Can Help
At Boa & Co., we specialise in helping Sydney small businesses stay compliant and efficient.
Our team can assist you to:
- Confirm eligibility for the Simplified Accounting Method
- Review your point-of-sale systems for ATO compliance
- Accurately calculate GST and input tax credits
- Identify cash flow opportunities and reporting improvements
We simplify your tax process so you can focus on running your business.
The Bottom Line
The Simplified Accounting Method 2025 is a positive step for small retailers looking to cut through complexity.
By adopting this method and working with experts, Sydney businesses can streamline GST obligations and stay ahead of ATO compliance.
📞 Need help applying the Simplified Accounting Method?
Contact Boa & Co. Chartered Accountants today.
📧 [email protected]
🌐 www.boanco.com.au
📍 Sydney, NSW
Stay compliant. Stay efficient. Stay ahead.