Simplified Accounting Method for Food Retailers – GST Updates from 9 September 2025

The Australian Taxation Office (ATO) has confirmed that eligible food retailers, such as small supermarkets and convenience stores, can continue to use the Simplified Accounting Method (SAM) to calculate their net GST amount under the new A New Tax System (Goods and Services Tax) (Simplified Accounting Methods – Supermarket and Convenience Stores) Determination 2025.

This new Determination will take effect from 9 September 2025, replacing the 2015 version that was due to expire on 1 October 2025. The updated rules maintain the same core provisions, aiming to reduce compliance costs for small businesses.

Who Can Use the Simplified Accounting Method?

To qualify for the SAM, businesses must meet the following criteria:

• The business mainly sells a mix of food and goods typically found in supermarkets or convenience stores.
• The business must not primarily sell fuel (petrol stations are excluded).
• No more than 5% of total sales can come from taxable goods containing GST-free ingredients.
• The business’s GST turnover must not exceed $2 million.
• The business must have adequate point-of-sale (POS) systems capable of recording:
  • GST-free and taxable sales separately,
  • The total amount received for GST-free sales, and
  • The total amount received for all goods sold during a period.

Why This Matters for Small Businesses

The continuation of the Simplified Accounting Method offers smaller food retailers a practical way to manage their GST obligations without the burden of complex reporting. It ensures compliance while saving time and reducing administrative costs.

If your business operates a small supermarket or convenience store, it’s worth reviewing your current GST processes to ensure you remain eligible under the 2025 Determination.

For more details or professional assistance with GST and accounting compliance, contact Gavin Ma & Co, your trusted accounting partner for small businesses in Australia.