Everything You Need to Know About BAS Statements
Everything You Need to Know About BAS Statements
A Business Activity Statement (BAS) is a tax report that businesses must submit to the Australian Taxation Office (ATO). It’s primarily used by businesses to report and pay for several tax obligations, including GST, PAYG withholding, PAYG instalments, and other tax requirements.
What Does a BAS Cover?
- Goods and Services Tax (GST): If your business is registered for GST, you’ll report the GST collected from sales and the GST paid on purchases. The difference determines whether you owe the ATO or are due a refund.
- PAYG Withholding: If you employ staff, you must withhold tax from their wages. This amount is reported on your BAS.
- PAYG Instalments: Some businesses are required to make income tax instalments. These are reported and paid via BAS.
- Other Taxes: Depending on your business structure and activities, your BAS may also include other taxes, such as luxury car tax, fringe benefits tax, and fuel tax credits.
How Often Should You Lodge a BAS?
The frequency of BAS lodgements depends on your business’s annual turnover and other specific criteria:
- Quarterly (Most Common): Lodged every three months.
- Monthly: Typically for larger businesses or those with a high GST turnover.
- Annually: Available to some small businesses, but it’s less common.
Why is the BAS Important?
Lodging your BAS on time is crucial to avoid penalties. Keeping accurate records throughout the year and working with an experienced tax agent can make the process smooth and stress-free.
Quarterly lodgment obligations
Table 1: BAS agent due dates – quarterly lodgment obligation
Benefits of Getting Professional Help
- Accuracy: A tax agent can ensure that all your GST, PAYG, and other tax obligations are correctly calculated.
- Compliance: An agent helps ensure that you meet ATO deadlines, avoiding potential fines.
- Maximised Deductions: Expert advice can help you identify tax deductions and credits that you might miss on your own.
Example
For a small business with a quarterly BAS obligation, the owner needs to track all sales and purchase invoices, employee wages, and tax withheld. Keeping detailed records ensures that the GST calculations are correct and the PAYG withholding aligns with payroll records.
If this sounds overwhelming, we can help simplify the process. Book a consultation today and let us handle your BAS lodgements, so you can focus on running your business! Contact us today for expert assistance with your BAS lodgements.
Book now for peace of mind and accuracy!
