BAS – Business Activity Statement

Managing your BAS it is extremely important to understand your business’s finance. So, what is the BAS?
Regardless of their size, businesses registered for GST (Goods & Services Tax) must prepare and lodge the BAS. The BAS is the reporting to the ATO (Australian Taxation Office) of your total revenue, total expenses, and how much GST you collected/paid during the accounting period. Your BAS could also include other obligations, such as PAYGW (pay as you go withholding) which are the tax you withheld from your employees; PAYGI (pay as you go installment) which is the income tax instalment; FBT (fringe benefit tax); WET (wine equalisation tax); LCT (luxury car tax) and Fuel tax credit. Most businesses will only have to pay GST, PAYGW, and PAYGI.

How is GST calculated?
It is fairly simple. It’s the calculation of how much GST you collected on your sales minus how much GST you paid on your purchases. If the amount is positive, you owe the ATO some money, whereas if it is negative, the ATO will refund you some money.

Do all businesses need to lodge the BAS?
No. As mentioned above, only if your business is registered for GST you must prepare and lodge the BAS, or if you are not registered for GST but have withheld taxes from your employees or are wanting/have been told to pay taxes (installment), you have to lodge the activity statement.

How do I know if I have to register for GST?
The threshold for GST registration is $75,000 turnover for normal organisations and $150,000 for non-profit organisations.

You can also register for GST if you do not reach the threshold, however, it is not mandatory.

How do I lodge my BAS?
Ideally, you have a BAS agent such as myself or an accountant that will prepare and lodge the BAS for you. They will go through all of your GST codes and other obligations and make sure all are met before submission. Alternatively, you can do it yourself. if your sole trader, the simplest way is through your personal MYGOV, or if you have your accounting software (eg: MYOB, XERO) linked to your MYGOV, you can lodge it via the software.
Companies and other structures can lodge the BAS via their BAS agent/accountant as well, or through their accounting software too, providing that it’s connected to the ATO.

When do you submit the BAS?
If you report quarterly, it is every 3 months, and the deadlines usually are around the 28th of October (1st quarter), February (2nd quarter), April (3rd quarter) & July (4th quarter).
If your business has an annual turnover of $20 million, you must report your GST monthly. In this case, the deadline is the 21st of the following month. The same rule applies to PAYGW if it’s more than $25,000 per year.

If you are late submitting your BAS, penalties will start at around $200 per every month overdue. If you have made a mistake or something has changed from the previous BAS, you can correct the mistake with no penalties when preparing the following BAS.

We always discouraged people and business owners with no or little accounting knowledge to prepare and submit a BAS. BASes can be quite complicated and it is always good to contact a professional that can do the job efficiently and precisely.

Get in touch today for info on BAS preparation and lodgement! we are here to help.
North Brisbane Bookkeeping

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