What Is A Business Activity Statement (BAS)?
GST-registered businesses need to declare how much GST they’ve collected and GST they’ve paid by completing a Business Activity Statement (BAS).
A BAS is a form that you fill out between one and twelve times a year, depending on your business size. The Tax Office uses the information on your BAS to work out your GST refund or bill. It’s also used for business income tax (if you’re in the pay-as-you-go system), employee income tax, fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits.
Do You Need To Lodge A BAS?
If you are a business registered for GST, you need to lodge a Business Activity Statement (BAS).
Your BAS will help you report and pay your:
- Goods and Services Tax (GST)
- Pay As You Go (PAYG) Instalments
- Pay As You Go (PAYG) Withholding Tax
- Other Taxes
When you register for an Australian business number (ABN) and GST, the Tax Office will automatically send you a BAS when it’s time to lodge.
When To Lodge Your BAS
The due date for lodging and paying is displayed on your Business Activity Statement (BAS).
If the due date is on a weekend or public holiday, you have until the next business day to lodge and pay.
Your GST reporting and payment cycle will be one of the following:
- Quarterly – if your GST turnover is less than $20 million – and we have not told you that you must report monthly.
- Monthly – if your GST turnover is $20 million or more.
- Annually – if you are voluntarily registered for GST and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).
A registered BAS agent can help you lodge your activity statements.
How To Lodge Your BAS
You have several options for lodging your Business Activity Statements (BAS) and reporting your goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other taxes.
Even if you can’t pay by the due date, you still need to lodge your BAS on time. This will give you certainty of your position with the Tax Office and shows them that you’re aware of your obligations and doing your best to meet them.
You can lodge a BAS yourself online, through online accounting software (e.g. Xero), by a paper form by mail, or through a BAS Agent (recommended method).
Can You Lodge A BAS Yourself?
A business owner is able to lodge their own BAS, but we don’t recommend it. GST legislation is complicated and encompasses several areas including GST, Wine Equalisation Tax, Luxury Car Tax, Fuel Tax, Fringe Benefits Tax, PAYG (Pay As You Go) Withholding and PAYG Instalments. It is unlikely that the average business owner will be across all of these areas of GST law and as such, should not be preparing their own BAS. There is a huge potential for errors and either over or under claiming GST.
Business owners looking to ensure that their BAS is done correctly should instead, engage the services of a registered BAS/Tax agent.
What Is A BAS Agent?
A BAS Agent is a fully licenced and registered professional who assists business owners with BAS services.
To become a BAS Agent, a person must apply to the Tax Practitioners Board and hold a minimum of at least a Certificate IV in Financial Services (Bookkeeping) or (Accounting) from a Registered Training Organisation (RTO) and successfully completed a Tax Practitioners Board (TPB) approved course in basic GST/BAS taxation principles.
They also need to have a minimum of 1,000 hours of practical experience handling GST transactions and BAS lodgements within the last 4 years.
To maintain a BAS licence, a person must complete a certain number of approved continuing professional education activities each year
What Does A BAS Agent Do?
A BAS Agent can advise a client, provide various levels of information and/or can represent a client to the Australian Taxation Office in relation to a range of BAS services. These include:
- Bookkeeping services involving GST transactions
- Payroll, including the withholding of tax amounts and associated reporting requirements
- Other PAYG Withholding amounts such as no ABN, Interest & Dividend
- Payment of Income Tax via PAYG Instalments
- Wine Tax, Fuel Tax, and Luxury Car Tax
- Fringe Benefits Tax (FBT) payments
- Taxable Payments Annual Reporting system
- The Superannuation Guarantee system
BAS Agents can also assist with the design, setup and implementation of business compliance systems (e.g. Xero), advise how various relevant areas of GST legislation affects them, and review client operations to ensure compliance.
Can A Bookkeeper Prepare and Lodge A BAS?
A bookkeeper cannot assist with BAS services unless they are an appropriately registered and licenced BAS Agent. If a bookkeeper is a registered BAS Agent, they can legally offer bookkeeping services involving GST and assist with your BAS services.
Get Professional Help
If you’re ready to streamline your bookkeeping, Maree’s Mobile Bookkeeping is experienced in helping Australian business owners to set up all of the bookkeeping apps mentioned in this post.
Maree’s Mobile Bookkeeping provides a complete Bookkeeping, BAS Lodgement and Payroll Service for small business owners. As we work virtually, we service business owners from anywhere in Australia. From bookkeeping services through to payroll services, we’re here to help you take control of your bookkeeping and compliance functions so that you can focus on growing your business.
To find out more about how a professional bookkeeping service can save you time and money, phone Maree today on 0429 363 047.
