Is Your Business BAS-Ready?
Now is a great time to make sure your business is ready to meet upcoming business activity statement (BAS) due dates. The BAS applies if you run a business that’s registered for GST. You’ll need to report and pay using a monthly or quarterly BAS, and may report and pay GST annually, depending on your business turnover and other circumstances.
When you register for an Australian business number (ABN) and GST, the ATO will automatically send you a BAS when it’s time to lodge. This will help you report and pay your business’s GST, pay as you go (PAYG) instalments, PAYG withholding tax and other taxes and credits.
You can lodge your own BAS online using ATO Online Services (which may make you eligible for extra time to lodge), or directly from some business and accounting software. Payment is generally due by the same date as lodgment. Alternatively, you can have your registered tax agent or BAS agent lodge and handle payments on your behalf, which can also mean you get extra time to lodge.
To make your BAS as stress-free as possible, it’s important to:
- keep records of all sales, fees, expenses, wages and other business costs;
- keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims;
- reconcile sales with bank statements;
- use the correct GST accounting method; and
- keep all your tax invoices and other GST records for five years.
Finally, remember that you (or your agent) always need to lodge a BAS by its due date, even if your business has nothing to report for the period. You can lodge a “nil” BAS online or by phoning the ATO’s automated reporting service.
Important: Clients should not act solely on the basis of the material contained here. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We, therefore, recommend that our formal advice be sought before acting in any of the areas.
