If you are new to the business world, the term “business activity statement” may not be something you are familiar with. By law, if you are a business that is registered for GST, it is your obligation to lodge a business activity statement (BAS). In today’s article, we have a look at what business activity statements are and everything you need to know about lodging one for your own business. Read on to find out more!
What Is A Business Activity Statement?
Business Activity Statement are in essence, a breakdown of your business’ payments with regard to:
- Goods and services tax (GST)
- (PAYG) income tax instalment
- (PAYG) tax withheld
- Fringe benefits tax (FBT) instalment
- Luxury car tax (LCT)
- Wine equalisation tax (WET)
- Fuel tax credits
Your Business Activity Statement is usually issued by the Australian Taxation Office either on a monthly or quarterly basis. As a general rule of thumb, business owners are expected to lodge their monthly BAS form to the ATO and make payment no later than 21 days after the end of month on your form.
If your BAS is issued on a quarterly basis, these are the deadlines you will have to abide to:
- July—September … 28 October
- October—December … 28 February
- January—March … 28 April
- April—June … 28 July
If you choose to lodge your quarterly BAS online, you may be eligible for a concession which allows you two extra weeks to lodge and pay for your BAS. Here are a variety of ways in which you can lodge your BAS online:
- Online BAS services for individuals and sole traders (accessed through myGov.)
- Business Portal—Easily accessed with your myGov ID.
- SBR-enabled software – Standard Business Reporting software which is available to all business owners.
Tips That Will Make Preparing Your BAS Simpler
Here are some incredibly useful tips that will make preparing your business activity statements a lot easier.
- Keep records of all of your sales, fees, expenses, wages and other business costs. It is important that you keep accurate notes and information on all these aspects of business in order to make preparing your BAS a quick and simple task.
- Keep appropriate details on stocktake records and log books to substantiate motor vehicle claims for your business.
- Always use the correct GST accounting methods.
- Keep tax invoices and other GST records for a minimum of at least 5 years.
How To Lodge and Pay For Your Business Activity Statements:
In order to find out the due date for paying your business activity statements, have a quick look at the statement itself. The due date for lodging and paying is usually displayed on your BAS. It is important that you ensure that you lodge and pay on time in order to avoid being slapped with an unnecessary penalty fee.
Do keep that that if a lodgment date happens to fall on on a public holiday or weekend, you are allowed to loge/pay on the next business day. Always remember to use the right payment reference number (PRN) which is also referred to as an EFT code when making payments on your BAS. If you think you might not be able to lodge and pay by your deadline, it is important that you get in touch with the ATO as soon as possible to discuss your options and avoid paying a penalty fee.
Business Activity Statements
Business activity statements are part and parcel of running a business, and although they may seem a little intimidating in the start, most business owners get the hang of it relatively quickly. We hope that this article has given you some insight on what a BAS is, and how you can go about lodging and paying your BAS with the Australian Taxation Office. All the best!