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What is a Business Activity Statement (BAS)?

18, Aug, 2024

4 MIN

BAS, or Business Activity Statement, is a form submitted to the Australian Taxation Office (ATO) by businesses to report their tax obligations. This includes Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, PAYG instalments, and other taxes. BAS helps businesses keep track of their tax liabilities and ensures they meet their reporting and payment requirements on time.

Understanding and managing BAS is important for maintaining compliance and avoiding penalties. By staying on top of your BAS obligations, you can help ensure your online business runs smoothly and stays in good standing with the ATO.

What Does BAS Mean for Your Business?

Okay, so you've heard about BAS, but what does it actually mean for you and your online business? It's all about keeping the ATO happy, which we know is important. Let's break it down:

Goods and Services Tax (GST)

Remember the 10% you add to your sales? That's GST, and your BAS is where you report it. You tell the government how much GST you've collected and how much you've paid on your business expenses. The difference is what you might owe or get back.

Read our guide on GST to learn more.

Pay As You Go (PAYG) Instalments

If you have employees, you're probably deducting tax from their wages. Your BAS is also where you report these PAYG instalments to make sure everyone's taxes are sorted.

Read our guide on PAYG to learn more.

Other Taxes Included in Your BAS

Depending on your business, your BAS might also include other taxes like fringe benefits tax (FBT) or wine equalisation tax (WET). It's best to check with your accountant to see what applies to you.

How Often Do You Need to Lodge a BAS?

The frequency with which you need to lodge a BAS depends on the size and type of your business. The ATO sets different reporting schedules to cater to various business needs.

Quarterly

Some businesses choose to lodge their BAS quarterly. This schedule strikes a balance between regular reporting and manageable workloads. Quarterly lodgements are due:

28th October for the July-September quarter

28th February for the October-December quarter

28th April for the January-March quarter

28th July for the April-June quarter

Monthly

Larger businesses, those with a GST turnover of $20 million or more, may need to lodge their BAS monthly. This helps ensure that significant tax obligations are reported and paid more frequently. Monthly BAS lodgements are due on the 21st of the following month.

Annually

Some businesses, especially those with simpler tax affairs or lower turnovers, may be eligible to lodge their BAS annually. This option is usually available to businesses that voluntarily register for GST with a turnover below the $75,000 threshold (or $150,000 for non-profit organisations). Annual BAS lodgements are due on 31st October, in line with your income tax return.

You should check with a financial advisor to see what schedule is best for your business.

Who Can Help with Your BAS?

Feeling a bit overwhelmed by all this BAS talk? Don't worry, you're not alone! Lots of small business owners find it helpful to get a bit of support with their BAS. Here are a couple of options:

Bookkeepers and Accountants

These financial whizzes can take the hassle out of BAS. They can help you keep your records in order, prepare your BAS statement, and even lodge it electronically for you. It's like having a personal tax assistant!

BAS Agents

If you want someone who really knows their stuff, a registered BAS agent is a great choice. They're certified by the government to provide BAS services, so you can be confident they're across all the latest rules and regulations.

BAS: The Foundation for a Compliant Online Business

There you have it – a clear overview of BAS and what it means for your online business. While it may initially seem like just another task on your to-do list, understanding and managing your BAS is important for maintaining smooth operations and a healthy financial standing. Remember, staying on top of your BAS not only ensures compliance but can also lead to financial benefits.

Speaking of growth, have you considered expanding your business through Amazon? Selling on Amazon offers reach to potential customers, presenting a powerful avenue for sales. A firm grasp of your BAS can help streamline your operations, making navigating the world of Amazon selling even more manageable.

Frequently Asked Questions About BAS

Can I Lodge My BAS Online?

You can lodge your BAS online through the ATO's Business Portal or through accounting software. It's quick, easy, and you'll have a digital record of everything.

What Information Do I Need to Lodge My BAS?

To lodge your BAS, you'll need your business details, your GST information (like your sales and expenses), and any other relevant tax details. It's helpful to keep your records organised throughout the year so everything's ready to go come BAS time!

Important: The above information is provided for convenience and general reference purposes only. It is not tax, legal, or other professional advice and must not be used as such. You should consult your professional advisers if you have any questions about your individual circumstances or need further detail.

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