Australian Agency Chart of Accounts for Xero (Reverse Charge + PSI)

An Australian agency runs on two things a generic chart handles badly: a stack of offshore software and ad platforms, and a roster of freelancers who blur the line between contractor and employee. This is an Australian agency chart of accounts built for Xero, coded for the reverse charge, contractor super, and recharged media. It ships as a readable reference (CSV) and a Xero import CSV.

Offshore software and the reverse charge

Agencies live on offshore SaaS, and the GST treatment depends on whether the vendor is registered for Australian GST. Most large platforms now are, and they charge GST, so the offshore software account defaults to GST on Expenses. Where a vendor is not registered, the reverse charge applies: you self-assess 10% on the purchase and claim the matching credit if entitled, which nets to nil for a fully creditable agency and bites only where credits are limited. The account lists GST Free Expenses as the alternative and carries a note, so an offshore invoice with no Australian GST is recorded correctly rather than treated as carrying a claimable credit it does not have.

Client media and ad spend

Paid media is the other large offshore line. Client media and ad spend sits in cost of sales, defaulting to GST on Expenses, with a note that offshore ad platforms billing without Australian GST self-assess under the Division 84 reverse charge. Where you on-charge that media to clients, the recharge is your agency’s own taxable supply, so the chart gives recharged media income its own account, kept apart from the pass-through cost. Netting the two is the classic agency error that distorts both GST and margin.

Contractors, super, and PSI

Agencies pay freelancers heavily, and two questions follow every contractor invoice. First, a contractor engaged mainly for their labour can attract the superannuation guarantee even when they invoice you, so the freelancer and contractor account carries a note rather than assuming a contractor cost is super-free. Second, verify the ABN, since a supplier in business who does not quote one triggers 47% withholding. The chart also notes the personal services income rules on the home office account, because where they apply, home-occupancy deductions are limited to what an employee could claim.

Fees and the registration threshold

Fee and commission income defaults to GST on Income. A growing agency must register for GST once turnover passes A$75,000, after which it charges 10% on fees and lodges a BAS, and the offshore reverse-charge entries flow through the same statement.

How to use it

1. Open the CSV: each account carries its class, a default Xero GST code, the alternatives, and a note.
2. In Xero, go to Accounting, then Chart of accounts, then Import, and upload into a demo organisation first.
3. Confirm the rates exist in your org.
4. Brief whoever processes supplier bills that offshore invoices need a registration check and that recharged media is income.

The agency ledger is mostly recurring subscriptions and contractor bills, which is what capture is good at:

• Hubdoc pulls recurring subscription invoices into the file.
• ExpenseFlow reads each invoice and receipt, extracts the line detail and currency, attaches the source, and posts it into Xero, while flagging an offshore supplier that has not charged Australian GST and surfacing contractor payments so the super and PSI questions are raised at capture.
• Dext applies supplier rules for repeat vendors.

Whether the PSI rules apply, and a contractor’s super status, are judgements for you or your accountant; the chart raises them. For the full picture, see the Australian agency expenses guide. On QuickBooks instead? See the Australian agency chart of accounts for QuickBooks.