BAS: Business Activity Statement
The Australian Taxation Office (ATO) issues a form called the Business Activity Statement (BAS). It enables companies to fulfill their tax reporting and payment obligations.
BAS consists of luxury car tax (LCT), fuel tax credits (FTC), wine equalization tax (WET), PAYG withholding, PAYG installments, GST, and fringe benefits tax (FBT) instalments.
It is very important to understand what your form contains because the BAS covers a variety of tax forms. You have to lodge your BAS accurately and on time – through a tax agent or the Australian Tax Office’s online service.
Otherwise, you could face heavy penalties!
Lodge Your Business Activity Statement: How To Submit?
The Australian tax office offers the following options for BAS lodgement.
- ATO Online Services for Business: It is the online and preferred method for several businesses because it is more convenient and faster.
- Through a tax or BAS Agent: Your agent must be registered, though it is best for your business if you outsource tax.
- Standard Business Reporting: If you use accounting software that supports SBR.
- MyGov: MyGov profile is only for solo traders; they can lodge by using their profile.
- By Phone: It is for the times when you have nothing to report; only then can you lodge by phone.
- By Mail: You can utilize the paper form that the ATO supplied you.
To let you know when to file, the ATO usually provides the BAS two weeks before the end of your reporting period. Being prepared in advance helps prevent last-minute stress and errors.
Reporting Cycles & Due Dates
The Australian Tax Office sends a form for each reporting period; your due date is printed on the business activity statement form. The common reporting cycles of lodgement are:
- Monthly: Businesses that secure a GST turnover of $20 million or more $20 million are obliged to report monthly.
- Quarterly: It applies to start-ups or mainly small businesses.
- Annually: It is for companies with annual revenue under $75,000 that voluntarily registered for GST.
Delayed lodgement or payments can lead to penalties, so if you sense any delay in the process, inform the ATO before the due date, as it would save your energy and money.
Get Your BAS Right
The mistakes in your business activity statement can cause you serious trouble. The correct statement saves you from heavy penalties and portrays you as a responsible businessman.
Cross-check your accounting records with your BAS figures:
Make sure your numbers are on point and match your bank statements, invoices, and purchase receipts.
Cross-check your purchase and sale timings:
The most common mistakes occur in timings, so you must check that sale and purchase transactions are within the period covered by BAS.
Sections of Business Activity Statement Form:
You have to complete and report only those sections that apply to your business.
Use Accurate Labels for Each Tax Type on the Form:
- GST uses labels G1–G24, 1A, 1B
- PAYG withholding uses labels W1–W5
- PAYG instalments use labels T1–T11
- FBT uses labels F1–F4, 6A, 6B
- LCT uses labels 1E, 1F
- WET uses labels 1C, 1D
- FTC uses labels 7C, 7D
By using correct labels on the form, you can avoid confusion in your business activity statement.
Step‑by‑Step: Lodging Your BAS Online
Fixing Mistakes or Making Adjustments
Sometimes we are very well-prepared, but still some glitch occurs at work, and we get panic attacks in a second, we have hundreds of thoughts in our mind like I’ve submitted some wrong information, Oh, what if I get a penalty? So, if you submitted incorrect information on BAS, hold on, with us, you don’t have to worry; let us guide you on how to fix your errors in BAS.
- By using your ATO account, you can revise your previously lodged business activity statement online.
- You can also add adjustments in your next BAS (mostly favourable for those who submit monthly)
- Ensure that you maintain thorough documentation of the correction, which enlists what the mistake was, why it happened, and the steps taken to fix it.
Making changes timely manner portrays that you are effectively overseeing your tax responsibilities and minimizes the risks of penalties in the future.
Instalment Notices
Instead of a full BAS, some businesses receive instalments. These notices are to require payment of GST or PAYG instalments. So, you don’t have to worry if you only receive an instalment notice; you have to focus on the instructions and make sure you pay by the due date.
Need Help Lodging Your BAS Accurately?
Proper lodging of your Business Activity Statement may save you from paying a large amount of money due to errors and penalties imposed by the ATO. We ensure BAS lodgement at Wollongong Tax Services is a matter of ease, accuracy, and tension-free.
With registered tax agents, you can submit your BAS on time and compete with the government, or just starting here, we do all the work, preparing and reviewing it, as well as submitting it to the appropriate ATO channels.
We will remove the burden of compliance so that you can get down to running your business.
Lodge professional BAS and help with small business tax now in Wollongong and surrounding areas.
Conclusion
Not only is it a tax requirement to file your Business Activity Statement (BAS), but there are other reasons why it is important to get it right and remain a financially sound and compliant business. Knowing how the ATO BAS system operates, how to use the correct tax labels, the proper method of lodgements, and so on, would save you avoidable stress and even expensive fines. Accuracy and timeliness are important, whether you are filing through online services provided by the ATO, a registered agent, or accounting software.
FAQs
What sections are necessary to complete on the BAS form?
You have to cover only those sections that apply to your business—no need to worry about others.
When is my BAS due?
It depends on your reporting cycle. Whether you report monthly, quarterly, or annually, you have to check your BAS form for the due date.
How does ATO finalize and deliver the due date?
ATO finalizes the due date by your reporting cycle, and it prints out the due date on your business activity form.
Can we submit BAS online?
Yes, you can. In fact, it is the most convenient and fastest way to lodge your BAS.
How do I lodge my business statement online?
The most preferred method is by using the Australian taxation office’s online services.
