When you start a new business, you need to make various decisions for your company. One of the first decisions is deciding whether you need to register for GST or not because it will impact how you manage your financial situation. If you register for GST, then you will need to file a quarterly BAS with the ATO. This blog post will help you know about a BAS, how to file it and why it is important.

What is BAS?

A business activity statement is a form that businesses must lodge to the Australian Taxation Office (ATO) to report and pay their tax liabilities. Your business activity statement includes PAYG instalments and withholding, fringe benefit tax, and fuel tax credit if these apply to your business. It is crucial to file and pay your BAS in full amounts owed by the due date. You can lodge online, through your BAS agent or tax accountant in Melbourne, or lodge by mail.

Business Activity Statement helps businesses keep an eye on all parts of the business finances. Because your BAS needs you to track your business expenses and income in detail to calculate your GST and other liabilities.

Filing and Paying Your BAS

You have various options for filing your business activity statement (BAS). Filing electronically is a quick way. There are many businesses that file and pay BAS on their own. A registered BAS Agent or tax agent can also help you file. Some small business bookkeepers in Melbourne are also BAS agents. Make sure to lodge and pay BAS on time and in full to avoid paying interest.

GST Reporting Cycle

Your GST reporting and payment cycle will likely be one of the following:

  • Quarterly

If your GST turnover is less than $20 million and the ATO has not told you that you need to report monthly.

  • Monthly

If your GST turnover is $20 million or over – or you want to report GST monthly.

  • Annually

If you are voluntarily registered for GST and your GST turnover is less than $75,000.

Quarterly Reporting

If your GST is under $20 million and the ATO hasn’t told you that you need to report GST monthly, then you can report and pay GST on a quarterly basis. Due date for each quarter:

 

QuarterDue date
1. July, August and September28 October
2. October, November and December28 February
3. January, February and March28 April
4. April, May and June28 July

Monthly Reporting

The due date to file and pay your monthly BAS will be the 21st day of the month after the end of the taxable period. For instance, a July monthly BAS will be due on 21 August. If your GST turnover is under $20 million or over, you need to report and lodge GST monthly and file your BAS. You can get bookkeeping services in Melbourne where you will get different bookkeeping solutions along with BAS lodgment and payment.

Annual Reporting

If you are voluntarily registered for GST and your turnover is under $75,000, you need to file and pay GST annually. The due date to file and pay your annual GST return is 31 October. If you don’t need to file a tax return, then the due date is 28 February after the annual tax period. If you seek help from a registered tax or BAS agent, then different dates may apply.

Changing Your Lodgment and Payment Cycle

Based on your circumstances, you could change your lodgment and payment cycle. You need to contact the ATO to change your lodgment and payment cycle. If you want to change your lodgment and payment cycle early in the lodgment time, you can start the new cycle. Otherwise, the new cycle will start from the start of the next quarter or year. If you have changed your cycle within the last 12 months, you may not be eligible to change your lodgment and payment cycle.

Conclusion

Through the business activity statement, the business notifies the ATO regarding its tax obligations. Make sure that the information on your BAS is accurate to avoid fines and costs. That’s why it is important to seek help from a Reliable Bookkeeping Services provider to ensure BAS accuracy.

Other Useful Links:-

Bank Reconciliation Statement