What Is Business Activity Statement (BAS) In Accounting?
What Is Business Activity Statement (BAS) In Accounting?
For a business, Business Activity Statement (BAS) is a tax reporting obligation that makes it easier to pay for tax obligations such as the Goods and Services Tax (GST), Pay As You Go (PAYG) instalments, and PAYG withholding tax. Provided by the Australian Taxation Office (ATO), BAS lodgement and returns have strict due dates, and late submission is subject to fines and penalties.
No matter, which business you operate or what ABN you hold, you are required to file correct and timely BAS returns.
The Purpose of BAS
BAS is the official statement for reporting the amount of GST that a firm is required to pay to the ATO once it has registered for Goods & Services Tax.
Who needs to file a BAS?
In 2000, businesses having annual revenue of more than $50,000 were previously required to register for BAS. A few years later, this cap was increased to $75,000 per person.
Every GST-registered firm must file a BAS. Even if its income falls below the $75,000 cutoff, a business is not exempt for filing BAS. When a business is closed or sold, it is the responsibility of the business to cancel the registration.
In case, the turnover falls below the permitted annual income, the business may decide to deregister.
When is BAS generally filed?
Generally, registered businesses are required to lodge BAS either every month, every quarter, or every year. For monthly returns, these are due 21 days after the last day of the month.
The lodgement dates for quarterly BAS are:
- July, August, September (to be paid by 28th October)
- October, November, December (to be paid by 28th February)
- January, February, March (to be paid by 28th April)
- April, May, June (to be paid by 28th July)
Businesses with a $20 million or more annual revenue must report BAS each month. Those having a turnover below this threshold are often needed to report every three months. The ATO determines the lodgement cycle and all BAS lodgements must be precise and timely.
If you are looking for a qualified tax accountant to assist you with BAS lodgement, contact KPG Taxation right away.
Focus On Growing Your Business, Leave The Accounting On Us!
- Income Tax : File your taxes & get the best claims & returns.
- Accountancy : Hire expert accountants to manage your transactions.
- Bookkeeping : Let us handle your record books and expense reports.
- Business Advisory : From company set-up to payroll, we handle it all.