We have prepared some handy tips and FAQs to assist you when preparing your business activity statement (BAS). There’s no need to let your BAS stress you out, we’ve got you covered.
The business activity statement or BAS is a form that is submitted to the Australian Taxation Office (ATO) by registered businesses to report their tax obligations.
Before the end of each reporting period, the ATO will send you a BAS that’s custom-made for your business, with your business details and the information you need to provide.
How do you write a business activity statement?
When preparing to lodge your BAS it is important that you submit accurate information to avoid mistakes or adjustments.
- Ensure you’ve included all your transactions
- Make sure that all expenses are business expenses
- Ensure your sales and expenses are for the same dates as your BAS reporting period
- If you’re using accounting software, make sure you’ve coded items correctly
Once you have prepared the figures then you can complete your BAS online, using Standard business reporting (SBR) enabled software, or through a tax or BAS agent.The ATO has a list of lodgement options available on its website.
What is BAS supposed to cover?
Your BAS helps you to report and pay your GST, PAYG installments, PAYG withholding tax, and other taxes that are due for the given time period.
What is included in a BAS statement?
Your BAS can include some or all of the following:
· Goods and services tax (GST)
· Pay as you go (PAYG) withholding
· PAYG instalments
· Fringe benefits tax (FBT) instalments
· Luxury car tax (LCT)
· Wine equalisation tax (WET)
· Fuel tax credits
Who needs to lodge BAS?
If you are a business registered for GST you need to lodge a business activity statement (BAS). If you are not registered for GST, then you’re not required to lodge a BAS. GST registration is required for businesses that have a turnover of $75,000 or more.
How long do you have to pay BAS?
If your BAS is due monthly, it must be paid by the 21st day of the month following the end of the taxable period (ie, July’s BAS will be due on the 21st of August). If you’re on a quarterly cycle, then BAS must be paid by the 28th of the month following the end of the previous quarter (ie, July – Sept BAS is due by the 28th of October).As a registered tax agent, Prosperity Accountants can handle your BAS and get you an extension on your payment due dates.
What dates are BAS due in 2022?
The due date for lodging and paying is displayed on your business activity statement (BAS).
Payment of BAS depends on the size of your business and its reporting cycle. This is determined by your business’ annual GST turnover.
Your GST reporting and payment cycle will be one of the following:
Quarterly: if your GST turnover is less than $20 million – and if the ATO has not told you that you must report monthly.
Monthly: if your GST turnover is $20 million or more.
Annually: if you are voluntarily registered for GST and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).
Quarterly BAS due dates
| Quarter | Due date |
| 1. July, August and September | 28 October |
| 2. October, November and December | 28 February |
| 3. January, February and March | 28 April |
| 4. April, May and June | 28 July |
Monthly BAS due dates
The due date to lodge and pay your monthly BAS is the 21st day of the month following the end of the taxable period. For example, a June monthly BAS is due on 21 July.
Annual BAS due dates
Should your business fall into this category then your due date to lodge and pay your annual GST return is 31 October. If you are not required to lodge a tax return then the due date is the 28th of February following the annual tax period.
What happens if I don’t pay my BAS on time?
A penalty may apply if you fail to lodge your BAS on time. It is recommended that you still lodge your BAS on time, even if you can’t pay by the due date. This will give you the certainty of your position with the ATO and it will show that you are aware of your tax obligations and doing your best to meet them.If you are finding it difficult to pay by the due date, you may be able to enter into a payment plan. It is always best to seek professional advice or contact the ATO to explain your situation. Chat to our expert tax team if you are behind on BAS or need advice.
Mistake vs adjustments when submitting BAS
What’s the difference between a mistake or an adjustment when you lodge your BAS? A mistake relates to an amount that was incorrect at the time of lodgment whereas an adjustment relates to a purchase or reported sale that was correct at the time of lodgment, but something occurred later that changed the amount of reported GST.
What happens if I made a mistake on my BAS?
Firstly, let’s put your mind at ease, mistakes can be fixed. However, you should keep in mind that there is a four-year time limit that applies when claiming credits and refunds.
Most mistakes can be corrected on your next business activity statement.
Examples of adjustment events include:
· if the price of a sale or purchase changes
· if goods are returned and the sale is cancelled.
Mistakes happen often when business owners lodge their own business activity statement without advice. Simple errors like not claiming all their GST credits or incorrectly including GST on GST-free sales are common.
Why use a BAS agent?
Using a BAS agent to lodge your business activity statement minimises the risk of errors and unnecessary penalties and can save you money in the long-run.
As part of our AccountsPRO solution, our expert team will take care of all your bookkeeping, including lodging your business activity statement, all for a fixed monthly fee.
You can rest easy knowing that your BAS and other legal and tax obligations are not just being done, but they’re being done right – lodged on time, error-free, and with digitised supporting records.
Read more about our AccountsPro Solution here or book a call with us to discuss our services.
