BUSINESS ESSENTIALS
TOP TIPS FOR LODGING YOUR BUSINESS ACTIVITY STATEMENTS Small businesses make up around 20 per cent of the Australian Tax Office’s total revenue collection, and approximately 30 per cent of GST. They are the backbone of the Australian economy, and essential for nation-building and the delivery of crucial services. If they are GST-registered, small businesses are required to lodge Business Activity Statements (BAS), which summarise revenue, and report on a few key expenditures too. Preparing and lodging a BAS doesn’t need to be a difficult task for a small business owner, particularly with these top tips. What is BAS? A Business Activity Statement (BAS) summarises the revenue you take in over a specific period of time, and reports on a few key expenditures too. GST-registered small businesses submit a BAS to the Australian Tax Office (ATO) to determine: • Their GST bill or refund • What tax has been withheld from employee pay and must be sent to the ATO • Their income tax instalments if they’re in the pay-as-you-go (PAYG) system A BAS can also be used to record other taxes and credits, such as fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits. Who has to lodge a BAS and when? If you’re GST registered, then you have to submit business activity statements. Any business can register for GST and certain businesses are required to if: • Your income passes a certain amount (check the amount with the ATO) • You want to claim fuel tax credits Small business owners should be aware of BAS deadlines: • Quarterly: when a business’ GST turnover is less than $20 million • Monthly: when a business’ GST turnover is $20 million or higher • Annually: when the business is voluntarily registered for GST, and annual GST turnover is under
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Australian Welding
$75,000. This is $150,000 for not-for-profit organisations. Most small businesses fall into the quarterly reporting cycle. The due dates for this cycle are: • July, August and September: due 28 October • October, November and December: due 28 February • January, February and March: due 28 April • April, May and June: due 28 July
How to Complete a BAS Statement Anyone who completes a BAS needs to report how much GST was collected from customers, and how much GST was paid to suppliers. Those numbers should be in your business accounts. If not, you’ll need to look back through your receipts and invoices or bank statements. If you pay employees, your BAS must report how much PAYG tax you’ve withheld from their pay during the period. That information will be in your payroll system. And if you’re
