What is a BAS?
A BAS, or Business Activity Statement, is a tax reporting requirement set by the Australian Tax Office (ATO) for reporting and paying goods and services tax (GST), pay as you go (PAYG) income tax instalments and PAYGW withholding tax (employee tax) and other tax obligations related to the operation of your Business.
When you register for an ABN (Australian Business Number) and GST, you are required to remit a BAS to the ATO with details of your trading for the relevant period, this can be monthly or quarterly dependent on your business operating structure and turnover.
If your business does NOT turnover more than $75,000 on an annual basis, you are not required by law to register for GST.
All businesses registered for GST are required to lodge a BAS and remit their GST by the due date.
You report all income received an expenses paid on your BAS in addition to the GST components of those amounts. If you have received more GST than you have paid, you will be required to remit that amount to the ATO. Likewise, if you pay more GST than you receive, you may be entitled to a refund.
Note that if you have employees, you will also be required to pay their tax withheld (PAYGW) to the ATO along with any Income Tax Instalments the ATO have requested (these are referred to as either PAYGI or ITI instalments and are prepayments towards your EOFY Income Tax Liability)
We strongly recommend that at the end of each month, you set aside funds to cover your ATO Obligations (you can read more in this article).
If you require assistance with managing your Cash Flow, or further clarification in relation to your obligations as a small business owner in Australia, please do not hesitate to Contact Us for advice.