How LEAP Calculates GST?

06/11/2025
Knowledge

How To

Please note that LEAP calculates GST (tax) on a line-by-line basis to comply with ATO's rules for rounding of GST. This means that GST is calculated for each individual item on the invoice, rather than on the total invoice amount. It is calculated this way due to integration requirements with accounting software like Xero and MYOB. Specifically, when the total professional fee is altered, there will be a re-distribution of the fee amounts and GST amounts in proportion to the original fee line-item amounts, and in the meantime, the line-by-line GST amount will be rounded from three or more decimals to two decimals. The rounding could cause the total GST amount to be missing or increase by a couple of cents.

Also when the value of a line item's GST has more than 2 decimal places, it is rounded up to whole cents- this is done on a line by line basis. Hence why there can be a GST variance of a few cents. You may need to alter the fees in the invoice to reflect the exact GST which you believe needs to be charged.