14, March 2008


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Business Activity Statement

BAS Lodgement & Extensions For Payment Dates

Quarter

Due Date

Time To Complete

July/September 28 October 4 weeks
October/December 28 February 9 weeks
January/March 28 April 4 weeks
April/June 28 July 4 weeks

What is the Business Activity Statement?

The BAS is a single document issued by the Taxation Office to incorporate the payment of 6 different categories of Tax.

  • Goods and Services Tax (GST)
  • Pay as You Go Tax (PAYG)
  • Fringe Benefits Tax (FBT)
  • Wine Equalisation Tax (WET)
  • Luxury Car Tax (LCT)
  • Wholesale Sales Tax Rebate (WST)

PAYG replaces Pay as You Earn (PAYE), Prescribed Payments System (PPS), Reportable Payment System (RPS), Provisional Tax, Company Tax Instalments and a number of withholding tax schemes.

Personalised BAS

The BAS is a personalised form issued monthly or quarterly (businesses with turnover of $20 million or more must lodge monthly) by the ATO for the recording and lodgment of financial details on the conduct of your business and the payment of taxes. This personalised form has the following key information included:

  • Business address
  • Australian Business Number
  • The period to which the lodgment relates
  • A unique identifier in the form of a bar code
  • The % amount of instalment tax payable based on your turnover
  • The amount of fringe benefits tax payable
  • The type of reporting either cash or accrual accounting
It is possible to vary the pre-entered amounts and percentages, but if you underestimate the amounts, there are severe fines for misleading reporting.

Reconciling Your Business Activity Statement (BAS) To Your Accounting Records

Unfortunately for most businesses, reconciling your BAS is not as simple as it appears. The official instruction booklet alone is over 150 pages long!! If you have a computer accounting system which has been upgraded to cope with the GST, it should provide you with the necessary figures to complete the items on your BAS.

The form itself is double sided. On the front page, you have to include the totals of GST and other taxes payable, less input tax credits and other refundable amounts in order to get your net amount of GST Payable/Refund. On the back of the form is the calculation sheet which is the thorn in the sides of many a business owner/operator.

It is very important to remember that you are aware of the dangers of attempting to complete the form without reconciling. If you make a mistake and understate the GST payable, you could be fined severe penalties. If you mistakenly overstate the GST payable, you will paying money unnecessarily to the ATO - money which you could be used for other cashflow requirements.

If you are having difficulties reconciling your accounts to get the relevant amounts for your BAS, please click on the following link for help:

Gruden Accounting

BAS Simplification

Earlier this year, the Government announced significant changes in compliance requirements concerning preparation and lodgement of your BAS.

Annual Turnover less than $20million currently reporting and paying quarterly.

From Quarter 3 (Jan/Mar 2001), these businesses can use the existing BAS but only need to report GST collected and paid (Items 1A and 1B) and quarterly sales/turnover (Item G1).

All other boxes in the GST section of the BAS do not have to be completed. In Quarter 4, the Government will issue a new simplified remmitance form starting from that quarter.

You will still need to report annually to the ATO the following:

  • G2 Exports
  • G3 Other GST Free Sales
  • G10 Capital Purchases
  • G11 Non Capital Purchases
  • These can be reported at the same time as your annual income tax return but must not be later than 28 February 2002. From the April/June Quarter 2001, the BAS will be replaced by a new simplified quarterly remittance form which includes a separate calculation sheet but which does have to be sent to the ATO. PAYG Instalments & Withholding Tax nedd not be reported on this form. However fringe benefits tax, wine equalisation tax, and luxury car tax boxes will be included only for those businesses that have any of those obligations.

    Annual Turnover less than $2million currently reporting and paying quarterly.

    There is an additional option for these businesses. If you have lodged at least 2 quarterly BAS, from the January/March 2001 Quarter you have the option of paying a GST instalment amount (advised by the ATO) quarterly. They would also have to lodge an annual GST Reconciliation Statement at the same time as they lodge their annual income tax return, but again, it must be no later than 28 Februahry 2002.

    Businesses Reporting & Paying GST Monthly

    These businesses will continue with the current arrangements but will report on a new streamlined remittance form which started in the June Quarter 2001. There are no changes to the lodgement dates remain at the 21st of the following month.

    On this new streamlined form, the 7 boxes which have to be completed on a monthly basis are:

  • G1 Turnover
  • G9 GST Collected
  • G20 GST Paid On Purchases
  • G2 Exports
  • G3 Other GST Free Sales
  • G10 Capital Purchases
  • G11 Other Purchases
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