A Business Activity Statement (BAS) is a tax reporting obligation for all businesses issued by the Australian Taxation Office (ATO). It’s essentially a summary of all the taxes you have paid or need to pay during a specified period.
The type and amount of taxes you’re required to pay depends on several factors such as company size, number of employees, benefits offered, type of products or services, and location in Australia. Here is a list of mandatory and additional taxes businesses are required to pay:
- Goods and services tax (GST)
- Fringe benefits tax (FBT) instalment
- Pay as you go (PAYG) income tax instalment
- Pay as you go (PAYG) tax withheld
- Fuel tax credits
- Luxury car tax (LCT)
Registered businesses might be required to lodge their BAS either every month, every quarter, or every year. There are strict due dates for the lodgment of your BAS, and penalties apply if you are late to lodge.
The ATO determines the BAS lodgment cycle, and all BAS lodgments must be accurate on time or you will face penalties – which is why it’s beneficial to have an expert like Carbon to manage your BAS lodgments.
- Monthly is for businesses with GST turnover of over $20 million.
- Quarterly is if your GST turnover is less than $20 million and the ATO has not told you that you must report monthly.
- Annually is if you are voluntarily registered for GST and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).
BAS Lodgment due date for each quarter:
|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|
*A late lodgment does not apply for quarter 2 because the due date already includes a one-month extension.
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 July monthly BAS is due on 21 August.
If your GST turnover is $20 million or more, you must report and pay GST monthly and lodge your activity statements online. Schools and associated bodies are automatically granted a deferral of their December activity statement. These will be issued with a deferred due date of 21 February.
The business activity statement (BAS) due date to lodge and pay your annual GST return is 31 October.
If you aren’t required to lodge a tax return then the due date for your BAS is 28 February following the annual tax period.
The benefits you’ll enjoy fromworking with us
Accounts management is a specialist skill and doing it yourself can lead to costly errors – and lost time! So here’s why you should outsource your BAS Lodgments:
- Avoiding penalties from the ATO for late lodgment.
- Reduced stress knowing your BAS is being accurately prepared and lodged by an expert.
- Help manage cash flow.
- More time to focus on other tasks.
- Your BAS agent can view BAS and reminder messages sent to you via their online service.
- BAS Agents are required to partake in ongoing study to maintain their registration so you’re ensuring that your BAS is lodged by an expert.
Frequently Asked Questions
The ATO determines your BAS lodgment cycle, and it’s important you meet the deadlines, or you will face penalties.
- If your business has a GST turnover of over $20 million, you will need to lodge your BAS monthly.
- If your GST turnover is less than $20 million, then your BAS lodgments will be quarterly.
If you do your own BAS lodgments, then they are due to the ATO on the 28th of the month following the end of the accounting period. If you use a tax agent like Carbon, the lodgment date is two months after the end of the accounting period.
You are probably aware that it’s compulsory to lodge your BAS at least quarterly, but maybe you have some overdue. Perhaps you were too busy, the forms were too complicated, or there was an unforeseen circumstance that stopped you from lodging your BAS with the ATO. Don’t worry, it’s very common and with the right help the problem can be fixed easily. Whatever the reason you fell behind, you need to get up to date and doing so will help you get a better night’s sleep.
The easiest way to get back on track is to get in touch with Carbon Bookkeeping & CFO Services, registered BAS Agents. We’ve dealt with all different types of situations, and can guarantee we’ve seen, and fixed, a lot worse.
If the due date is on a weekend or public holiday, you have until the next business day to lodge and pay.
Even if you can’t pay by the due date, you still need to lodge your BAS on time. This will give you certainty of your position with the ATO and shows you’re aware of your obligations and doing your best to meet them.
Keeping good records helps you stay on top of your business. Remember to:
- Keep records of all sales, fees, expenses, wages and other business costs
- Keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims
- Reconcile sales with bank statements
- Use the correct GST accounting method, and
- Keep all your tax invoices and other GST records for five years.
Find out how easy Carbon can help you with your BAS lodgments.
Magic Door Pillows Case Study
Magic Door Pillows is an online small business dedicated to creating a magical bedtime routine that makes any child excited to go to bed. Having worked with Carbon’s accountants in Perth on previous projects, the business owner knew he wanted all his bookkeeping processes set up correctly from the get-go.
From the beginning, Carbon has taken care of all Magic Door Pillow’s bookkeeping needs including quarterly BAS lodgments. Since launching, Magic Door Pillows has had less stress and can relax knowing all important documents are being submitted on time. Read our case study for more information.
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