What is a Business Activity Statement (BAS)?
A Business Activity Statement (BAS) is a tax reporting system used by the Australian Taxation Office (ATO) to gather and process information about a business’s taxation obligations.
The BAS reports a business’s Goods and Services Tax (GST), Pay As You Go (PAYG) withholding tax, and other taxes and duties. Businesses are required to submit their BAS to the ATO regularly, typically quarterly or monthly, depending on their level of annual turnover.
The information provided in the BAS enables the ATO to calculate a business’s tax liabilities and entitlements and helps businesses to manage their taxation obligations.
What is on a BAS statement?
The BAS statement summarizes an entity’s tax obligations, including goods and services tax (GST), pay-as-you-go (PAYG) withholding, and other related taxes. Here are the key components typically included in a BAS statement:
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- Business and Contact Information: Details such as the business name, Australian Business Number (ABN), and contact information of the entity submitting the statement.
- Reporting Period: Specifics the reporting period for which the taxes are reported. This can be monthly, quarterly, or annually, depending on the reporting obligations of the entity.
- GST Information: Captures the Goods and Services Tax (GST) information. This includes the total sales or supplies made by the entity during the reporting period, the GST collected on sales (known as GST on sales), and the GST paid on business purchases (known as GST on purchases). The statement calculates the net amount of GST payable or refundable by the entity.
- PAYG Withholding Information: If the entity has employees, the BAS statement includes information about the Pay As You Go (PAYG) withholding obligations. This consists of the total wages paid to employees during the reporting period, the PAYG tax withheld from employee wages, and any other PAYG withholding obligations, such as payments to contractors.
- Other Taxes: The BAS statement may include sections for reporting and paying additional taxes, such as luxury car tax, wine equalization tax, fuel tax credits, and fringe benefits tax (FBT), if applicable to the entity.
- Calculation of Amounts Payable or Refundable: The BAS statement calculates the entity’s total amount of tax payable or refundable. It considers the GST liabilities, PAYG withholding liabilities, and any other applicable taxes. The entity is required to remit the payment if there is an amount payable or can claim a refund if there is an amount refundable.
- Declaration and Lodgement Details: The BAS statement is required to be signed or digitally declared by an authorized person representing the entity. The statement includes lodgement details, such as the date of lodgement and the method of lodgement (online or paper).
How do I prepare my BAS statement?
You can automatically prepare and submit your Business Activity Statement using Akaunting or a manual process.
For the manual processes, you need to follow these steps:
Here are the steps on how to prepare your BAS statement:
Gather your information. You will need to gather all the information you need to complete your BAS statement, such as your income, expenses, and GST collected and paid. You can find this information in your business records, such as your invoices, receipts, and bank statements.
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Use the BAS form. The ATO has a BAS form that you can use to complete your statement. You can find the BAS form on the ATO’s website.
Enter your information. Once you have gathered your information, you will need to enter it into the BAS form. Be sure to enter the information accurately.
Sign and date your BAS statement. Your BAS statement must be signed and dated by an authorized business representative.
Submit your BAS statement. You can submit your BAS statement online or by mail. The due dates for submitting your BAS statement vary depending on your business’s turnover.