As a business owner in Australia, you are required to report your business activity to the Australian Taxation Office (ATO) through a Business Activity Statement (BAS). A BAS is a form that businesses use to report and pay their taxes to the ATO. It is a legal requirement for businesses that are registered for Goods and Services Tax (GST) and other taxes such as Pay As You Go (PAYG) withholding, Fringe Benefits Tax (FBT), and Luxury Car Tax (LCT).
What is a Business Activity Statement?
A Business Activity Statement (BAS) is a form that businesses use to report and pay their taxes to the Australian Taxation Office (ATO). It is a legal requirement for businesses that are registered for Goods and Services Tax (GST) and other taxes such as Pay As You Go (PAYG) withholding, Fringe Benefits Tax (FBT), and Luxury Car Tax (LCT).
What is a BAS Statement?
A BAS statement is a document that outlines the taxes that a business owes to the ATO. It includes information about the business’s GST, PAYG withholding, FBT, and LCT obligations. The BAS statement is used to report and pay these taxes to the ATO.
How to Complete a BAS Statement
Completing a BAS statement can be a daunting task for many business owners. However, it is a necessary task that must be done to ensure that your business is compliant with the ATO. To complete a BAS statement, you will need to gather all the necessary information about your business’s income and expenses for the reporting period. You will also need to calculate the amount of GST, PAYG withholding, FBT, and LCT that your business owes to the ATO.
BAS Reporting
When reporting your BAS, you can choose to do it yourself or hire a registered tax agent to do it for you. If you choose to do it yourself, you can use the ATO’s online BAS portal to lodge your BAS. The portal is a secure online service that allows you to lodge and pay your BAS online. You can also use accounting software such as MYOB, Xero, or QuickBooks to complete and lodge your BAS.
BAS Business Portal
The BAS Business Portal is an online service provided by the ATO that allows businesses to manage their tax and super obligations online. It is a secure online service that allows businesses to lodge and pay their BAS, update their business details, and manage their employees’ super contributions.
When is a BAS Statement Due?
The due date for lodging and paying your BAS statement depends on your reporting period. If you report quarterly, your BAS statement is due on the 28th day of the month following the end of the quarter. If you report monthly, your BAS statement is due on the 21st day of the following month. It is important to note that if the due date falls on a weekend or public holiday, the due date is extended to the next business day.
What Happens if You Don’t Lodge Your BAS Statement on Time?
If you fail to lodge your BAS statement on time, you may be charged a penalty by the ATO. The penalty amount depends on how late your lodgement is and how much you owe. The ATO may also charge interest on any unpaid amounts. It is important to lodge your BAS statement on time to avoid penalties and interest charges.
What Happens if You Make a Mistake on Your BAS Statement?
If you make a mistake on your BAS statement, you can correct it by lodging an amended BAS statement. You can do this online using the ATO’s online BAS portal or by using accounting software. It is important to correct any mistakes as soon as possible to avoid penalties and interest charges.
How Can a Registered Tax Agent Help with Your BAS Statement?
A registered tax agent can help you with your BAS statement by providing advice on your tax obligations, preparing and lodging your BAS statement, and representing you in dealings with the ATO. They can also help you to minimise your tax liabilities and ensure that you are claiming all the deductions and credits that you are entitled to.
Conclusion
Lodging your BAS statement is an important task that must be done to ensure that your business is compliant with the ATO. It can be a daunting task, but with the right information and tools, it can be done easily and efficiently. Whether you choose to do it yourself or hire a registered tax agent, it is important to lodge your BAS statement on time and correct any mistakes as soon as possible to avoid penalties and interest charges.
By understanding what a BAS statement is, when it is due, and how to complete it, you can ensure that your business is meeting its tax obligations and avoiding any unnecessary penalties or interest charges. With the help of the ATO’s online BAS portal and accounting software, lodging your BAS statement can be a simple and stress-free process.
If you are unsure about your tax obligations or need help with your BAS statement, it is recommended that you seek the advice of a registered tax agent.