What are Business Activity Statements (BAS)?
A Business Activity Statement (BAS) is a document that businesses in Australia need to submit regularly to the Australian Taxation Office (ATO). This form is utilized for reporting various details to the ATO, such as:
- GST (Goods and Services Tax) collected and paid
- PAYG (Pay As You Go) withholding amounts
- PAYG instalments
- WET (Wine Equalisation Tax)
- Fuel Tax Credits (FTC)
How The Tax Planner Supports Businesses with Activity Statements?
Businesses must submit an Activity Statement if registered for GST, irrespective of their annual turnover. The filing frequency depends on turnover and GST registration status. For instance, businesses with an annual turnover below $20 million usually file quarterly, while those exceeding $20 million file monthly.
An Activity Statement corresponds to a specific reporting period (e.g., a calendar quarter). The business reports information for that period and pays any amounts owed to the ATO by the due date. Notably, businesses can claim entitled GST credits for the same period.
Alongside tax-related details, businesses must provide identification information like their Australian Business Number (ABN) and GST registration number on the Activity Statement.
It’s noteworthy that Business Activity Statements are now referred to as “Activity Statements” and can be submitted online via the Business Portal or through a Registered Agent.
Distinguishing Between BAS and IAS with The Tax Planner
Both Business Activity Statements (BAS) and Instalment Activity Statements (IAS) are essential forms for businesses filing with the Australian Taxation Office (ATO), yet they serve distinct purposes.
A Business Activity Statement (BAS) is employed to report various details to the ATO, encompassing GST, PAYG withholding, PAYG instalments, WET, and Fuel Tax Credits (FTC). The lodgment frequency typically varies quarterly or monthly, contingent on the business’s turnover and GST registration status.
In contrast, an Instalment Activity Statement (IAS) is utilized to report and remit income tax instalments to the ATO. This approach spreads tax liability payments throughout the year rather than requiring a lump sum at the fiscal year’s end. Businesses eligible for the pay-as-you-go (PAYG) instalments system must submit an IAS, paying taxes periodically (monthly or quarterly) based on their estimated annual income.
In essence, a BAS is for GST-related taxes, while an IAS is for reporting and paying income tax instalments.
Benefits of Choosing The Tax Planner as your BAS Agent
While there are various ways to handle your BAS lodgement independently, opting for the services of The Tax Planner as your BAS Agent offers numerous advantages:
- Access expert advice for tax savings.
- Ensure you never miss a BAS deadline.
- Achieve accurate reconciliation of all business activities.
- Benefit from safe harbor laws providing additional protection for your business in case of lodgement errors.
- Adherence to a code of conduct, ensuring professionalism in our accounting services.
- As Registered Tax Agents, we have extended time privileges for BAS lodgements if you miss the due date.
- Our team comprises qualified CPAs and Chartered Accountants, guaranteeing adherence to professional ethics, adequate Professional Indemnity Insurance, and meeting Continuing Professional Development learning requirements.
- Enjoy time savings, allowing you to focus on your business priorities.
FAQ
A BAS is a mandatory form that businesses in Australia need to submit regularly to the Australian Taxation Office (ATO). It serves to report and remit GST, PAYG withholding, and various other taxes.
The submission frequency of BAS depends on your business size and GST turnover. While most businesses file quarterly, it can also be on an annual or monthly basis.
Your BAS should encompass details on GST, PAYG withholding, and other applicable taxes like luxury car tax, wine equalisation tax, and fuel tax credits. Additionally, provide information on sales, purchases, and any adjustments or corrections to previous BAS.
Lodge your BAS online via the ATO’s Business Portal or through a registered tax agent. While paper submissions are possible, they are becoming less common.
You may request an extension for BAS lodgment if facing challenges meeting the due date. However, advance application is necessary, and the ATO will evaluate your request.
Failure to lodge your BAS on time may result in penalties, interest charges, and potential legal action by the ATO, leading to fines or imprisonment.