You might be reading this blog to learn about the Business Activity Statement (BAS), and how to lodge a BAS to pay your taxes, including PAYG and GST. Continue reading this blog to learn more about it:
What is Business Activity Statement (BAS)?
If your business is registered for GST, you should lodge a business activity statement (BAS). Your BAS will help you report and pay your:
- Pay As You Go (PAYG) instalments
- Goods and Services Tax (GST)
- PAYG withholding tax
- Other taxes
After registering for GST and an Australian Business Number (ABN), the ATO will send you a BAS when it is time to file.
What are BAS Lodgment Options Available?
It’s essential to file your BAS and pay in full any amounts owed by the due date.
Lodge Online
Most businesses that file their own BAS prepare and lodge it online. With online BAS lodgment, you:
- can file your BAS when it’s convenient to you
- may get an extra 2 weeks to file and pay your BAS
- may receive a faster refund
- get help to avoid making mistakes
- can check your BAS prior to lodgment and check that the amount calculated is equivalent to what you expect to pay or receive
Lodge Through a Tax or BAS Agent
A registered tax or BAS agent can file and pay on your behalf using their preferred electronic medium. When you seek help from an agent:
- They can check BAS and reminder messages sent to you through their online service
- You can still access your BAS using online services for business, even if your agent is managing it on your behalf
- You may receive additional time to file and pay
Due Dates for Lodging and Paying Your BAS
You may have various options for filing your business activity statement. Filing through a registered tax or BAS agent can also be the right option. You should pay your BAS on time and in full to avoid paying interest. If the due date is on a public holiday or a weekend, you may have until the next business day to file and pay. If you can’t file or pay on time and in full, contact the ATO before the due date. Even if you don’t have anything to report for the period, you still have to file your BAS as ‘nil’ by the due date.
GST Reporting Cycle
Your GST reporting and payment cycle will be one of the following:
- Quarterly: If your GST turnover is less than $20 million, and you are not asked to report monthly
- Monthly: If your GST turnover is $20 million or above, or you want to report GST monthly
- Annually: If you are voluntarily registered for GST and your GST turnover is under $75,000
What are BAS Mistakes or Adjustments?
Correcting a mistake made in an earlier BAS is different from making an adjustment:
- A mistake is considered when it relates to an amount that was inaccurate at the time of lodgment
- An adjustment is considered when it relates to a reported purchase or sale that was correct at the time of lodgment, but something happened later that changed the amount of reported GST
When Should You Fix a Mistake?
Here are some examples of mistakes that you may have made in a previously lodged BAS:
- transposition or clerical errors
- classifying a GST-free sale or purchase as taxable
- classifying a taxable purchase or sale as GST-free
- counting some of your purchases twice
When Should You Make an Adjustment?
When you come to know that you need to make an adjustment, you need to report it in the activity statement for your current reporting time period. Here are some examples of when you need to make an adjustment where:
- the cost of a purchase or sale changes
- goods are returned and the sale is cancelled
Conclusion
Now, you know what BAS is and how the BAS lodgment process works. If you find it difficult to lodge BAS, you can contact Trusted Tax Associates.
