What is Business Activity Statement and Do My Business Need To Submit it

What Is BAS?

Prior to answering this question, it’s better to know exactly what is BAS( Business Activity Statement)? So, as the name suggests, it is basically a business activity statement that Australian businesses need to issue. As a small business owner, you need to issue a BAS either on a quarterly or monthly basis.  By doing so, you can report on certain crucial aspects of your business. Say, for instance, reporting on your Pay As You Go (PAYG) instalments, Goods and Services Tax (GST) or your PAYG withholding tax.

Things which you should include in your BAS

BAS is basically like a rundown of the sums which you pay for certain taxes levied on your business indispensably. These include the following: 

• Notices of instalment for PAYG instalments and GST.
• Fuel tax credits.
• WET or that of Wine Equalization Tax.
• LCT or that of Luxury Car Tax.
• Fringe Benefits Tax (FBT) instalment.
• Pay As You Go (PAYG) tax which is being withheld.
• Pay As You Go (PAYG) instalments of income tax.
• Goods and Service Tax (GST).

You might have to report on some of your other taxing obligations too. These obligations should again be related relevantly to the business in which you are operating.

BAS lodgement is a necessity for every business: Yes or No? 

Well, not every business needs to lodge a BAS indispensably. Businesses which have got registered for GST need to lodge a BAS. Again, certain businesses can only get registered for GST. These include businesses whose gross earning is AU$75,000 or more. This amount is exclusive of the GST of ten per cent. However, if you are in the initial stage of your business, then, you need not register for one. Subsequently, you need to meet this criterion instantly after you start earning money. 

The exact time to lodge your BAS!

To get bits of information related to your BAS lodgement date, you must obtain a valid Australian Business Number (ABN). Subsequently, you need to get registered for GST. After you have completed this task, the Australian Taxation Office (ATO) will inform you about the lodgement deadline of your BAS. There are certain factors worth considering before you finally submit your Business Activity Statement. Say, for instance, the type of business which you are running. This is because criteria differ a lot from business to business. The requirements which apply to a company will not apply to a Sole Trader and will again be different for other business types. To know more, you need to pay a visit to the official site of the Australian Taxation Office.

Things you should do before submitting your Business Activity Statement!

Before BAS lodgement, there are quite a few reporting criteria worth complying with. Given below are some of the essential reporting criteria which a conventional Business Activity Statement is comprised of. 

• Australian Business Number (ABN): Australian Business Number (ABN) is one of the most crucial requirements worth complying with. The taxation authorities can decide the type of business against which the BAS is submitted through your ABN. 
• Period of Reporting: Your BAS should specify its pertinent period of reporting clearly over it. According to this criterion, both the commencement and conclusion dates should be specified over there. 
• Submission of Document ID: A document ID is an exclusive number which varies according to each business and its pertinent statement. Through a document ID, you can identify your unique BAS whenever you need it.  

Aside, the mode of BAS payment (cheque, cash etc.) will be mentioned in your BAS. The date of the pertinent tax payment and the date of report lodgement will be specified in there too. 

Submit your BAS effectively!

After you have prepared your BAS, you need to submit it to the Australian Taxation Office before the due date. This date will be specified on your BAS form’s top which varies according to the mode of lodgement. Say for instance, whether the submission is on a quarterly or monthly basis. If the last-date is a weekend day or a public holiday, then, the subsequent working day will be the last date. So, you must submit your BAS on time to avoid any potential penalties.