BAS: What is a business activity statement?

Ask any business owner to name the most annoying part of running their business and chances are they will say tax paperwork – and one of those that just keeps coming around are business activity statements (BAS).

Keeping on top of your BAS is a legal requirement, but for many business owners it can be time-consuming and confusing.

Here’s everything you need to know about how BAS works and how you can make this tax requirement easier and stress-free.

What is a business activity statement (BAS)?

A business activity statement is required to be completed by Australian businesses that are registered for GST.

Completing your BAS helps you report on and pay your GST, pay as you go (PAYG) instalments, and PAYG withholding tax, as well as other taxes.

Businesses that register for an Australian Business Number (ABN) and GST will automatically be sent a BAS when it is time to lodge.

How do I lodge my BAS?

Most businesses find it simple and convenient to lodge their business activity statement online.

Lodging your BAS electronically means you can do it at a time that’s convenient to you and allows you to easily calculate the amount you expect to pay or receive, but other benefits include receiving faster refunds and the option of a two-week deferral.

For those who prefer mail, a BAS can be completed and posted to the Australian Taxation Office (ATO) in the envelope provided in their BAS package.

And for the convenience, or if your tax is more complicated, speak to your tax agent at LDB Group about how they can assist with lodging your BAS.

What are the due dates for lodging and paying my BAS?

Business activity statement reporting dates are displayed on your BAS, and the reporting period will depend on your estimated turnover.

For income under $20 million reporting is due quarterly, and for businesses with a turnover in excess of $20 million it’s monthly.

If you’re voluntarily registered for GST or make less than $75,000 per year, you can lodge a BAS annually.

Dates may change for businesses in areas experiencing natural disasters and they will be notified by the ATO if this is the case.

How do I pay my BAS?

To avoid paying interest, it’s advisable to pay amounts owing on business activity statements online, and this can be done with BPAY, a credit card or debit card.

Some businesses choose to make voluntary early payments to ensure they are able to pay the full amount by the due date.

What happens if I can’t lodge and pay my BAS on time?

If you are unable to lodge your business activity statement or pay by the due date, it’s important to contact the ATO as soon as possible. They will be able to offer you assistance, including creating a payment plan.

Remember, interest will be charged on any amount not paid by the due date, so working out a suitable payment scenario based on your circumstances, is better done earlier than later.

How do I fix a mistake on my BAS?

In terms of business activity statements, there’s fixing mistakes and there’s making adjustments.

A mistake is when you have lodged a BAS that you have later realised contains an error and you want to fix it.

An adjustment is when you have reported a sale or purchase that was correct at the time of lodgement, but something occurred later, such as goods being returned, that you need to correct.

When a mistake happens or you need to make an adjustment, you can fix it on your next BAS or revise the original BAS by contacting the ATO.

What are some helpful tips for completing my BAS?

Here are some ways you can make completing your BAS simpler and easier:

• Use whole dollar amounts – forget cents and just round up
• Make sure you enter invoices just once
• If you report GST on a cash basis, include expenses and sales that you made or received payment for in that reporting period only
• Leave blank any fields that don’t apply to you
• If you calculate your BAS manually, double check your figures and calculations.

Can I use a registered agent to do my BAS for me?

For many businesses, completing their BAS can be stressful and time consuming, and they choose to use a registered tax or BAS agent, who are able to lodge, vary, and pay on their behalf.

Using a tax agent ensures that your BAS is completed correctly and on time, and means that you can go back to doing what you enjoy and do best – running your business.

LDB Group can help with your business activity statements, providing an accurate and timely service that gives you peace of mind – and one less tax requirement to think about.

To find out how we can help you, call (03) 9875 2900 or send us information via the contact form below to find out more.