What is BAS?

A Business Activity Statement (BAS) is a tax reporting obligation for business. It is issued by the Australian Taxation Office (ATO) and facilitates the payment of Goods and Services Tax (GST), Pay As You Go (PAYG) instalments, PAYG withholding tax, and other tax commitments. Strict due dates apply to BAS Returns, and hefty penalties are imposed for late lodgment.

GST Registered Businesses in Australia must lodge BAS returns accurately and on time. Consequently, many businesses employ professional bookkeepers to ensure that their lodgments are correct.

The purpose of BAS

Once registered for GST, the ATO issues a BAS as the official statement for reporting the amount of GST that the business is obligated to pay to the ATO.

Does my business need to lodge BAS?

After GST commenced back in 2000, businesses with a turnover of more than $50,000 per year, needed to register for BAS. Some years later, that limit was raised to $75,000.

All GST registered businesses are obliged to lodge BAS. Even where the income drops below the $75,000 threshold, the business is not automatically exempt. It is the responsibility of the business to cancel the registration, when the business closes, or when the business is sold. The business may elect to deregister if turnover drops below the annual income limit.

BAS due dates

Generally, registered businesses might be required to lodge BAS either every month, every quarter, or every year. With regards to monthly returns, these are due 21 days after the last day of the month.

The common quarterly lodgment dates are the months of:

• July, August, September (to be paid 28th October)
• October, November, December (to be paid 28th February. An additional month is given because of the traditional Christmas break)
• January, February, March (to be paid 28th April)
• April, May, June (to be paid 28th July)
Typically, businesses with a turnover of $20 million or more will be required to submit BAS every month. Organizations with a turnover of less than this amount, will normally be required to report quarterly. The lodgment cycle is determined by the ATO.

All BAS lodgments must be accurate and on time. Consider getting an expert Highview Bookkeeper to manage your BAS submissions. Aside from ensuring that your information is precise and up-to-date, we will submit your BAS on time, so no more worrying about those hefty penalties.

Source: Australian Taxation Office www.ato.gov.au
Further details: https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/