Are you aware of your responsibility to submit a Business Activity Statement (BAS) to the Australian Taxation Office (ATO) if you run a business in Australia?
Your BAS report includes GST collections and payments, along with other taxes and obligations that need to be declared. In this post, we’ll guide you through the process of preparing your statement, the BAS due dates to be aware of, lodging, paying and even fixing any mistakes.
What Is In A BAS Statement?
The BAS is a report that businesses in Australia use to report and pay their GST, pay as you go (PAYG) withholding, PAYG instalments, and other taxes and obligations. The ATO uses the information in the BAS to calculate a business’s tax liability or refund.
Preparing To Lodge Your BAS
To nail your BAS preparation, it’s crucial to keep tabs on all the GST you’ve collected and paid, alongside any PAYG instalments and withholdings. Thankfully, there are user-friendly accounting software options like Xero or MYOB that can help you generate your BAS report.
Or better yet, you can outsource this work to a BAS agent who can make sure your statement is accurate and always on time. Whatever your method, ensure your business records are accurate and up-to-date to avoid any discrepancies.
Who Has To Lodge A BAS?
Most businesses in Australia are required to lodge a BAS. This includes sole traders, partnerships, companies, and trusts that are registered for GST.
When it comes to BAS lodgement, the ball is in your court. You can opt for electronic lodgement or snail mail. Most businesses prefer the former, as it’s quicker and more convenient. You have various options to lodge your BAS electronically, from the ATO’s online services to accounting software.
How Do BAS Payments Work?
Once you’ve prepared your BAS you’ll have a final amount that’s due to the ATO. You can pay this over using BPAY or a credit or debit card.
BAS Due Dates
The BAS due dates for lodging and paying your BAS depends on the reporting period of your business.
For a business with an annual turnover of less than $20million, the reporting period will be quarterly. Quarterly BAS reporting periods are July to September, October to December, January to March, and April to June.
The BAS due date for quarterly reporting is on the 28th day of the month following the end of the quarter. The exception to this rule is at the end of December when the due date is moved to February, instead of January.
Businesses with a turnover of $20million or more will report monthly and the BAS due date will be on the 21st day of the following month.
Do You Get Money Back From BAS?
It is possible to get money back from BAS if your GST credits exceed the amount of GST you owe. For example, if you’ve paid more GST on purchases than you’ve collected from sales, you may be eligible for a refund.
Additionally, if you’ve overpaid your PAYG instalments, you may be entitled to a credit that can be applied to future BAS payments or refunded to you. However, it’s important to note that BAS is primarily a reporting and payment system, so getting a refund is not guaranteed and depends on your specific business circumstances.
BAS Lodgement Tips
Here are some tips to make preparing and lodging your BAS easier:
- Keep accurate and up-to-date records
- Use accounting software to generate your BAS report
- Lodge electronically for faster processing
- Timely payments are key to avoiding penalties and interest charges
- Seek help from a registered tax agent if you need assistance
How Do I Fix Mistakes Or Make Adjustments On My BAS?
Mistakes happen. The good news is that you can fix them by lodging an amended BAS. It’s essential to do this promptly to dodge any unwanted penalties or interest charges.
The best way to avoid mistakes is by using the services of a registered BAS agent like Allevi8HQ.
What Happens If You Can't Lodge Your BAS And Pay On Time?
If you can’t lodge your BAS and pay on time, you may face penalties and interest charges. The ATO may also take legal action to recover the debt. If you’re having trouble meeting your BAS obligations, you should contact the ATO as soon as possible to discuss your options.
Ensuring that your records are precise and paying your dues on time is vital to avoid any additional charges and penalties.
We Make BAS Easy For You
Your Business Activity Statement shouldn’t be something that stresses you out every month or quarter. Avoid costly errors and the admin or preparing your BAS by working with an experienced BAS agent. Contact us to discuss how we can make BAS easy for you.
