Can I please get an explanation of the tax codes, particularly 'out of scope' tax code and 'gst free' tax code.

Hello there, @lmallinder

The difference between the two codes is that transactions that are coded GST-free are reported on your Business Activity Statement, whereas transactions coded Out of Scope are not. Use Out of Scope as the Tax Code for any transactions you allocate to an asset, liability or equity account such as tax payments, loan settlements, private drawings or transfers between bank accounts.

For more insights, you can check this article: 

• GST Settings Overview.
• Simpler GST FAQ.

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