As per: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/GST-and-the-Small-scale-Renewable-Energy-Scheme/, it is my understanding that - for residential, non-business customers - the Customer Rebate discount shown on their tax invoice is not subject to GST & therefore the tax code for this line is left blank.
If the customer is a GST-Regd business however, GST does apply & you would code the line as “GST”
Similarly, the Rebate Payments received are not “sales” so are not subject to GST either.
Do you receive these Rebates as Payments direct to you from the Government?
If so, I’d recommend setting-up separate Items & Accounts to track both the:
Rebate payments (you receive from the Govt) &
Rebate discounts (you give to customers)
- Create 2 Income (or Other Income) accounts – One called “Rebates Rcvd” & one called “Rebate Discounts”. (Leave tax code fields blank)
- Create 2 Items:
One “Service” or “Other Charge”-type Item called “REBATE RCVD” - This should be linked to your “Rebates Rcvd” Account (tax code field blank)
The 2nd should be a “Discount”-type Item called “REBATE (DISC)” & should be linked to your “Rebate Discounts” account (tax code field blank).
This discount can be set as a fixed $ amount or as a %
(If you have multiple standard scenarios eg varying amounts or discounts, you could set up an Item for each & upon selection, it will calculate accordingly on the customer invoice for you. IMPORTANT: If you setup a discount Item as a percentage & you want to add it to an invoice with multiple lines, you must use the “SUBTOTAL” Item FIRST. This is because the system can only discount the previous line, so if you need the discount percentage applied on all/specific line amounts, you must total these amounts first)
- When you invoice a customer, invoice the Item(s) as normal & use the “REBATE (DISC)” Item on the last line to automatically reduce (discount) the invoice.
(You don’t need to enter the minus/negative symbol .... Because it’s a discount Item, this is automatic J )
- When you receive Rebate Payments from the Govt, record these via a “Sales Receipt” using the “REBATE RCVD” Item.
I would have the Govt setup as a separate Customer & if you receive these Rebates individually via EFT, “Deposit to” your main bank account. (If necessary, you could setup & use a “Custom Field” on the Template for referencing the specific Customer/Inv # or otherwise just enter this manually in the Description &/or Memo)
You can “Memorise” this Sales Receipt for re-use so that you only have to edit the specifics each time.
This will allow you to track Rebate Discounts you’ve given to customers & Rebates you receive, separately on your P&L (which should usually balance each other out assuming timing) & also ensure the GST is correct.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
0422 886 003