BAS (BAS Activity Statement)

A business Activity Statement (BAS) is a report that business owners in Australia have to submit to the Australian Taxation Office (ATO) to report and pay their Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and other tax obligations.

Filing BAS is mandatory for businesses registered for GST, and the frequency of BAS lodgment depends on the GST turnover of the business. Businesses with a GST turnover of $75,000 or more have to lodge BAS quarterly, while businesses with a GST turnover of less than $75,000 have the option to choose quarterly or annual BAS lodgment.

As BAS is a crucial part of the tax obligations for businesses in Australia, it is essential to understand its requirements and ensure its accurate and timely lodgment. The ATO provides guidelines and resources to help businesses understand and prepare their BAS. The ATO also offers online services that make it easy for businesses to lodge and manage their BAS.

When preparing BAS, businesses have to report their GST sales and purchases, PAYG withholding amounts from employees and other payments, and other tax obligations such as luxury car tax and wine equalization tax. Businesses have to keep accurate records of their financial transactions to ensure their BAS is accurate and complete.

Filing BAS can be a complex and time-consuming process, and it is essential to seek professional help to ensure its accuracy and compliance. BAS agents are registered tax professionals who can assist businesses in preparing and lodging their BAS. They can also provide advice and guidance on various tax matters and help businesses stay compliant with their tax obligations.

Here are some steps to complete BAS for your clients:

1. Review the client’s financial records and transactions – The provider should review the client’s financial records and transactions to ensure they are complete and accurate. They should also ensure that the client has all the necessary documents and receipts to support their financial transactions.
2. Determine the BAS lodgment frequency – The provider should determine the client’s BAS lodgment frequency based on their GST turnover. If the client’s GST turnover is $75,000 or more, they have to lodge BAS quarterly. If it’s less than $75,000, they have the option to choose quarterly or annual lodgment.
3. Calculate the GST payable or refundable – The provider should calculate the client’s GST payable or refundable based on their GST sales and purchases. They should also consider any adjustments, such as GST-free or input-taxed supplies, and any GST credits or debits carried forward from the previous BAS.
4. Calculate the PAYG withholding amount – If the client is an employer, the provider should calculate the Pay As You Go (PAYG) withholding amount based on their employees’ salaries and wages. They should also consider any adjustments, such as tax-free thresholds and tax offsets.
5. Lodge the BAS – Once the provider has calculated the GST and PAYG amounts, they should prepare and lodge the BAS on the client’s behalf. They should ensure that all the information on the BAS is accurate and complete, and the lodgment is done before the due date.
6. Provide a summary of the BAS – The provider should provide a summary of the BAS to the client, including the GST and PAYG amounts payable or refundable. They should also provide a breakdown of the amounts, including any adjustments or credits.
7. Keep accurate records – The provider should keep accurate records of the client’s BAS lodgments, including the amounts and lodgment dates. They should also keep copies of the BAS and any supporting documents for at least five years.

In conclusion, completing BAS for accounting firm outsourcing requires a systematic and accurate process. The provider should review the client’s financial records, determine the lodgment frequency, calculate the GST and PAYG amounts, lodge the BAS on the client’s behalf, provide a summary of the BAS to the client, and keep accurate records. By following these steps, the provider can ensure compliance with the Australian Taxation Office’s (ATO) requirements and avoid penalties for non-compliance.

Here are some useful external links for businesses in Australia to learn more about BAS:

1. ATO BAS information – https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/
2. ATO BAS lodgment and payment – https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Lodging-and-paying-your-BAS/
3. ATO record-keeping requirements – https://www.ato.gov.au/Business/Record-keeping-for-business/
4. BAS agents register – https://www.tpb.gov.au/registrations/bas-agents-register