Tips to Make GST and BAS Easier for Small Business Owners

Meeting GST and BAS obligations is essential for every business owner. While preparing and lodging reports, you can easily get lost in the process. However, understanding crucial facts about GST and BAS is crucial for every business owner.

Understanding the Basics of BAS and GST

As a business owner, you must be aware of the basics of GST and BAS. Let’s start with GST. Goods and Services Tax (GST) is a 10% levy applied to most goods and services sold or consumed in Australia. However, not all businesses are required to register for GST. If your annual turnover is $75,000 or more, GST registration becomes mandatory. Once registered, your business must:

• Add 10% GST to your prices and collect it from customers
• Pay GST on most of your business-related purchases
• Report these transactions through your Business Activity Statement (BAS)
• Keep receipts and tax invoices for a minimum of five years

Your Business Activity Statement (BAS) is your regular submission to the Australian Taxation Office detailing your business’s tax obligations. Essentially, it acts as your business’s tax diary, where you report:

• GST obtained and paid
• Pay As You Go (PAYG) withholding for employees
• PAYG instalments for your personal income tax
• Any other tax obligations, such as wine equalisation tax or luxury car tax, if applicable

Due Dates for Filing and Paying Your BAS

If the ATO has not instructed you to report GST monthly, and your GST turnover is under $20 million, you can choose to report and pay GST quarterly. Here are the BAS due dates 2025 for quarterly reporting:

• Quarterly reporting

An additional time of 2 weeks will be given to you to file and pay quarterly BAS if you report and pay online. If you are using a registered tax or BAS agent, then you will be given extra time.

• Monthly reporting

If you report BAS monthly, your due date is the 21st day of the month, which is after the end of the taxable time period.  Whether you are reporting BAS quarterly, monthly, or annually, make sure to calculate BAS correctly. If you don’t know how to calculate BAS, you can ask a bookkeeper to do it for you.

• Annual reporting

If you are voluntarily registered for GST and your turnover is under $75,000, you must file and pay GST annually. 31 October will be the due date to lodge and pay your annual GST.

Record-Keeping Tips for GST and BAS

With good record-keeping, you can stay on top of your business. Don’t forget to;

• Keep and maintain records of all expenses, fees, sales, wages, and other business expenses.
• Keep accurate records, such as logbooks and stocktake records to substantiate motor vehicle claims.
• Reconcile your sales with bank statements.
• Use the right GST accounting method.
• Keep and maintain all tax invoices and other records of GST for at least five years. You can choose small business bookkeeping services, so you can always be ready with accurate and organised records.

Tips on Claiming GST Credits

• You are allowed to claim GST credits for the portion of business purchases and avoid claiming GST on personal expenses.
• For discounted prices, use the discounted price when you claim GST credits.
• You are liable to claim GST credits up front for purchases under a hire purchase agreement, in case you account for GST on a cash basis.
• When you claim invoices in a foreign currency, you are liable to claim GST credits on the Australian dollar value.
• If your business ceases or changes, you are required to repay some GST credits for business assets that you want to keep. If you don’t know how to claim GST credits, you can get help from Melbourne accountants.

Conclusion

As a business owner, you must have basic information about GST and BAS. You can also get help from reliable bookkeepers to maintain all the records to claim GST credits and pay BAS. To ensure accuracy in records for GST and BAS, you can choose our reliable bookkeeping services.