If your business operates in Australia, you are responsible for submitting a Business Activity Statement (BAS) to the ATO, even if you did not do any business during the reporting period.
These statements are used to report on and also pay different types of taxes, including the Goods and Services Tax (GST) which you have collected, Pay as You Go (PAYG) installments or withholding, and Fuel Tax Credits (FTC) and also Fringe Benefits Tax (FBT). Alternatively, if you are paying a quarterly PAYG installment, you must also submit a BAS.
What is a Business Activity Statement?
A Business Activity Statement, referred to as a BAS, is an Australian Taxation Office form that is issued to all GST registered entities. It reports a business’s Goods and Services Tax (GST) activity for the period.
What do I Need to Include on a BAS?
A form will be sent to you by the ATO, which details everything you need to provide. The primary sections include:
Different options/methods for reporting GST depends on how often you calculate, report, and pay it. You will have to specify in your BAS what your reporting period is.
PAYG Tax Withheld
You will be required to include the total dollar amount of salaries and wages paid and also the amount of tax withheld from those payments.
PAYG Income Tax
There are 2 options for reporting the business’ income tax installment, depending on how one reports and calculate it.
What you Owe
Based on the information you provided on GST and PAYG, you will have to calculate how much you owe to the ATO (from, tax withheld, sales etc.) and how much the ATO owes you (from GST on purchases and credit from PAYG income tax installments).
Joining these two numbers together will indicate the final figure of how much you owe or how much is owed to you.
Difference Between BAS & IAS
There are two types of activity statements. (BAS), that must be completed by those taxpayers who are required to report GST in the activity statement period.
The (IAS) applies to those not registered for GST, taxpayers with investment income, and GST-registered businesses that have to report (GST) on a quarterly basis and also other obligations on a monthly basis.
BAS Preparation & Lodgement
A Business Activity Statement is a form that businesses must submit to the
Australian Taxation Office (ATO) to report and pay their tax liabilities. A very large part of BAS is related to GST.
When a BAS form is completed, you are essentially reporting the goods and services tax the amount you have collected on your sales minus any that you have paid on your purchases, with the difference being the refund or what you owe to the ATO.
Your BAS can also include:
- PAYG withholding and installments,
- wine equalization tax,
Fuel tax credit and fringe benefits tax if they apply to your business.
IAS Preparation & Lodgement
An Instalment Activity Statement, commonly known as IAS, is a form used that is used by taxpayers who are not registered.
The IAS is also the form that is required to be lodged by entities that prepare a quarterly BAS but are needed to remit their PAYG withholding tax on a monthly basis because they are a medium withholder.
IAS is a pre-printed document that the ATO issues monthly, which summarizes the amounts of PAYG installments, PAYG withholding, and ABN withholding.
If you are a business that deals with PAYG Instalments, PAYG withholding, and FBT Instalments, and you are not registered for the GST, you will be required to lodge IASs.
If you are a trustee, for example, it is also possible that you will have to complete a combination of both business activity statements (BAS) and IAS forms.
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Where Can I Find my BAS Statement?
- You can get it through a registered tax or BAS agent.
- Through the ATO’s Online services for business or Standard Business Reporting (SBR) software.
- through your myGov that is linked to the ATO (only if you are a sole trader)
How do I Get a Copy of a BAS Statement?
If you wish to access your signed return in the future, you can access this by logging back into the tax portal where you electronically signed your BAS, https://portal.xero.com/.
How do I Get my ATO Activity Statement?
Once you are signed in to myGov, you can access the ATO from My member services, then:
- Choose tax and then Activity statements from the menu.
- To lodge a new activity statement, choose Lodge activity statement. To revise or view an already lodged activity statement, choose View or revise activity statements.
Do I Need to Lodge a BAS if There is no Income?
You still need to lodge a statement. Even when you have nothing to report this quarter, you still have to lodge a nil activity statement, and the easiest and fastest way to lodge is online.
How Often do you Pay BAS?
The due date to lodge and pay monthly BAS is the 21st day of the month following the end of the taxable period.
E.g., a July monthly (BAS) is due on 21 August, and If your GST turnover is $20 million or more, you have to report and pay GST monthly and lodge your activity statements online.
Does a Sole Trader Need to do BAS?
If one’s turnover is less than $75,000, you are not required to lodge a BAS statement to the ATO as a sole trader.
However, you will have to report your income and expenses in your annual tax return, so it’s also worth keeping track of all your records and documentation.
How do I Pay Myself as a Sole Trader?
As a sole trader, you are not required to pay yourself a salary or wage. Instead, any payment that you make to yourself is known as a ‘drawing.’ Any profit made in your business is yours, and it is from this that you take ‘drawings.’
How to Submit a Business Activity Statement?
Once the BAS is completed and signed, you need to submit it to the Australian Taxation Office before the due date for the final submission. The due date is mentioned at the top of your BAS form.
Your due date will differ accordingly depending on whether you are asked to submit the BAS monthly or quarterly.
The completed BAS can be submitted to the ATO through many channels. These include:
- ATO online business portal
- ATO online services (you will require a myGov account linked to the ATO)
- Through a BAS registered agent
- Directly from Standard Business Reporting enabled software
- through the phone, if you have nothing to report
If you decide to lodge your quarterly activity statements online, you may be eligible for a two-week deferral.
What Dates is BAS Due?
The due date will differ for both quarterly and monthly reporting:
|Q1: July, August, and September||28}|
|Q2: October, November, and December|
|Q3: January, February, and March|
|Q4: April, May, and June||28 July|
Your BAS is usually due on the 21st day of the month that is following the end of the taxable period.
If you are a school or associated body, you will be granted a deferral of your December activity statement automatically, which will be issued with a deferral date of 21 February.
The ATO allows businesses to submit their BAS on the first working day after the holiday when the final submission date is a public holiday or a weekend.
If you do not submit your BAS and pay the tax promptly, your business could suffer a penalty payment.
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