We mostly deal with businesses who already are in business and therefore aware of what a BAS is, but if you are new to business and GST, you may be scratching your head as to what a BAS is, why you have to lodge it, and how. So we’ve found this article from our friends at Xero and repurposed it to explain the basics.
BAS: what is it and how to lodge it
As a GST-registered business you’ll need to let the government know how much you’ve collected and how much you’ve paid. You do this by completing a business activity statement (BAS).
Information you will need
You’ll need a record of how much GST you collected on sales, and how much was paid on purchases. You won’t need to submit tax invoices when you lodge your GST return, but you will need to have them on hand.
What is a BAS?
A BAS is a form that you fill out (we do it online) between one and twelve times a year, depending on your business size. The ATO uses the information on your BAS to work out your GST refund or bill. It’s also used for business income tax (if you’re in the pay-as-you-go system), employee income tax, fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits.
Information you will need
You’ll need a record of how much GST you collected on sales, and how much was paid on purchases. You won’t need to submit tax invoices when you lodge your BAS, but you will need to have them on hand. The ATO may ask to see them later.
Because your BAS may also be used for other tax reasons, you will probably need to provide extra information about your business, its income, and any employees. Learn more on the ATO page about business activity statements.
How to lodge a BAS
You can lodge your BAS online:
- via your online accounting software (i.e Xero)
- through your myGov account if you’re a sole trader
- through the ATO’s online business portal
- by having a registered tax or BAS agent (generally an accountant or bookkeeper) submit it for you
What are BAS due dates?
How often you complete a BAS – and when you must submit it – depends on how much business you’re doing. And that’s measured by your annual turnover.
More than $20 million annual turnover
Lodge: Monthly.
Deadlines: You must submit a BAS within 21 days of the month closing.
Less than $20 million annual turnover
Lodge: Quarterly.
Deadlines:
– Quarter 1 (July–September) BAS is due on 28 October.
– Quarter 2 (October–December) is due on 28 February.
– Quarter 3 (January–March) is due on 28 April.
– Quarter 4 (April–June) is due on 28 July.
If your turnover is less than $10 million, you may be able to lodge annually – but you’re still required to pay a quarterly instalment of the GST you owe.
Less than $75,000 annual turnover (or $150,000 for non-profits)
Lodge: Annually.
Deadline: Submit with income tax return.
Wondering how we could lodge your BAS for you?
As part of our ‘managed clients’ package, we will lodge your quarterly BASes, annual tax returns, and everything else that your business may need to not only stay compliant, but also succeed.
Read more about how we could partner up and take your BAS off your hands here.
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This article was originally written by Xero, and can be found here.
